Financial Advisors and Fiduciaries / Financial Planning

How to Choose a Financial Advisor

By Carol Petrov

When choosing a financial advisor, it’s important to consider which kind of financial advisor is right for you. Some advisors will give you one-time advice, and others – like Kendall Capital – serve as your long-term financial team, actively managing your investments on an ongoing basis.

At Kendall Capital, we believe it’s important for you to choose the advisor model that’s right for you, so we encourage you to ask advisors and firms questions as you consider working with them. By doing so, you’re doing your due diligence and learning about the wide range of advisors and fee structures they use for compensation.

If you choose a Fiduciary Financial Advisor, you are choosing one who is held to a high bar to act in your best interest throughout the relationship, and not their own.

Do you want a one-time plan or long-term investment management?

There are different types of financial advisors with different “fee structures” – or ways of charging for their services. Some charge by the hour or as a flat rate, depending on the number of goals and considerations.

Some financial advisors give you a one-time, flat-rate plan but do not manage your investments over time. Then there are financial advisors who also actively manage your investments over the long term. This is what Kendall Capital does.

For advisors who do active investment management, fees might be included as part of the overall fees received through investment management. Investment management services can be charged by commission, as a percentage of assets, and/or through mutual fund fees. Some advisors will sell annuities in addition to managing a portfolio of stocks or mutual funds.

Consider how much time and attention you’ll receive as a client.

We recommend interviewing any advisors you may be considering working with to understand exactly who you’ll be working with and how much time they’ll be able to spend with you.

If you value having your advisors time and attention, you’ll want to pay attention to the structure of the firm. What are their focus areas and areas of expertise? You might want less financial financial planning but more consulting on a variety of topics as they come up.

You’ll also want to consider whether or not your prospective advisor believes in equipping you with knowledge and information, such as helping you learn more about investing approaches in general and providing one-on-one education and guidance.

Before you meet with the advisor, we suggest the following resources:

Do a quick background check using the FINRA Broker Check.
Learn more about the CERTIFIED FINANCIAL PLANNER™ credential and what it means if a financial advisor has this designation.
Read the advisor’s 2-page Form CRS (stands for Client Relationship Summary) which should be easy to find on their website to learn about the types of services offered and their fee structure.

The SEC (U.S. Securities and Exchange Commission) offers a dynamic and interactive investor-focused website with resources and tools.

Get Started

Reach out to us and someone will follow up with you as soon as possible.

info@kendallcapital.com

301.838.9110

2000 Tower Oaks Boulevard, Suite 240 Rockville, MD 20852