Frequently Asked Questions
What are your account minimums and fee schedule?
Our household minimum is $500,000 in Assets Under Management – meaning the combined value of accounts which we manage should be over $500,000. This includes taxable accounts, IRAs, Roth IRAs, 529 plans and even your employer-sponsored retirement plans like 401(k)s and 403(b)s. We charge 1% on the first $2,000,000 in assets we manage for clients. This fee is calculated and billed on a quarterly basis.
What is the difference between fee-only and fee-based?
There are two aspects to address, 1) The standard which is used to determine investment recommendations and 2) the compensation structure for the adviser.
Fee-only advisers abide by a fiduciary standard to always represent their clients’ best interests. The fiduciary standard is legally, the highest standard imposed by the industry. On the other hand, when an adviser is employed by a broker-dealer firm, they may be held to a fiduciary standard, but only for retirement accounts. In general, they are only required to recommend investments which are “suitable” for a client, which is a lower legal standard than the fiduciary standard.
Compensation is more clear cut. Fee-Only advisers are solely compensated by the fees paid to them by their clients and typically charge a fee by the hour, for example to develop a financial plan, or as a percentage of the assets they manage for the clients. Because they do not receive commissions from third-parties, they have no incentive to offer one investment over another. Fee-based advisers may also charge a fee as a percentage of the assets they manage, but they can also receive commissions from buying or selling investments or selling insurance or annuity products.
Do you provide accounting services or estate planning services?
No, we do not prepare tax returns or draft legal documents, but we do address potential pitfalls or opportunities around these areas of your life. We also recommend our clients to accountants and estate planning attorneys we trust.
Is there a charge for the initial meeting?
No. Our initial consultation is no charge to you.
Do you offer weekend appointments?
No. However, we are happy to meet with you Monday – Friday between 9am and 5pm.
With which custodian will my assets be held when working with Kendall Capital?
We primary custody clients assets at Charles Schwab & Co. and TD Ameritrade. However, we work with numerous custodians when it comes to managing the accounts for our clients with employer-sponsored retirement plans. This is a unique advantage of working with a fee-only adviser.
How onerous is the process of transferring my accounts from my current adviser to you? What are the tax ramifications?
The process can be as simple as signing a couple of forms, and in most cases, the investments are transferred electronically from one firm to another. If it’s necessary to sell some existing investments before moving them to us, we will go over those details prior to transferring and ensure you’re aware of any tax implications. If there are significant taxable gains, we will take the time to spread the tax burden over several years, especially if it’s to help you diversify from over weighted investments. We will also take the time to help you understand and update the cost basis of your stocks and mutual funds – something that is too daunting for most people to do on their own.
Who will be my main point of contact at Kendall Capital?
Depending on your needs, we will assign a Relationship Manager and a Portfolio Manager to you. The Portfolio Manager will be your main point of contact for investment and performance related questions, and the Relationship Manager will be your point of contact for all other questions. That being said, we often collaborate and draw from the skills and talents of all staff in order to provide the best experience for our clients. Our firm is designed so all our staff can help any client so they never have to worry that they are solely dependent on one point of contact.