Investment Management Accounts

The First Command Bank Wealth Management & Trust Services Group provides investment management services which are designed for high net worth clients who desire and need catered service with full flexibility in the composition of their portfolio. IMAs may also be the right solution for non-profit groups. These Invement Management Accounts ("IMAs") offer exclusive tailored services not available in other First Command products.

IMA Characteristics

  • Minimum account value: $500,000
    Each account must have a value of at least $500,000.
  • Inclusion of multiple security types
    IMAs may include mutual funds, individual stocks, exchange traded funds (ETFs), and individual municipal government or corporate bonds.
  • May be funded in multiple ways:
    • Liquidation. Assets are liquidated and proceeds are sent to the IMA for investing.
    • Transfer in kind. Assets are transferred from their present account (investment firm, broker/dealer, or bank) and placed in the IMA (transferring assets in kind is not a taxable event).
    • Cash deposit. You may fund an IMA with cash.
  • Individualized portfolios
    IMA portfolios are customized based on each client’s individual risk tolerance and investment objective.
  • Access to Account Information
    Trust Command is available for both clients and advisors to view IMA holdings and transaction history. The website shows a complete transaction history and can be customized by you.
  • Work Directly with Client’s Tax Advisor
    With proper authorization, the staff will work directly with your tax advisor when managing your account to ensure coordination of your entire investment picture.
  • Client Discretion
    You can establish the level of discretion allowed in the management of your account. Most allow the Investment Manager to have full discretion in managing their accounts, but you can elect to limit that discretion, requiring the Manager to consult with you for all or certain transactions.
  • Periodic Distributions or Investments
    IMAs can be set up to make periodic distributions (monthly, quarterly, semi-annually, or annually) to pay recurring bills, or transfer dollars into your checking account to support your monthly standard of living. Also, you can elect to make periodic investments into your IMA.
  • Payment of Estimated Taxes
    IMAs can pay estimated taxes to both the federal and state governments, if desired by you.
  • Effective Oversight
    IMAs are a bank product and currently fall under the regulatory authority of the Office of the Comptroller of the Currency ("OCC"). The Group is examined by the OCC every 15 - 18 months. Additionally, the Group is audited annually by an independent accounting firm experienced in bank trust operations.

How safe are IMA assets?

Even if a bank or trust company fails, investment management assets are safe. By law, trust assets must be kept separate from all other bank assets. For example, they cannot be loaned out, mixed with the corporate trustee’s own assets or used to satisfy its creditors. Because of these safeguards, trust assets are not insured by the FDIC.

Summary

IMAs offered by First Command Bank are tailored asset allocation portfolios using primarily equity and bond mutual funds but can also include individual stocks, ETFs and/or bonds. IMA portfolios may be established by investing proceeds from security liquidations, cash contributions or transferring existing securities in kind to the IMA.

IMAs can be the right solution for you. IMAs offer exclusive tailored services. If you are interested in learning more about our IMA product, call the First Command Bank Wealth Management & Trust Services Group at 888-763-7603, option 3, and talk directly with a member of the IMA team about the suitability of an IMA for your situation.