1. Start with fiduciary in D.C.
When researching a financial advisor for you, it is important to start your search with fiduciary. In order to receive the best financial advice that is customized to you, your financial advisor must be a fiduciary. Fiduciary financial advisors provide investment advice that is required, by law, to be in the best interest of the client. They do not sell investment products to their clients which means they never receive commissions from selling investment products.
What is a fiduciary?
A fiduciary is a person or organization that acts on behalf of someone else, putting their clients' interest above their own to preserve trust.
Being a fiduciary financial advisor requires that financial advisor or the Registered Investment Advisory Firm (RIA) to always act legally and ethically in the clients’ best interests.
Why Is working with a fiduciary financial advisor in D.C. important?
When working with a fiduciary financial advisor, you’ll know that the person managing your money must make decisions in your best interest.
Fiduciary financial advisors tend to have less conflicts of interest, further building trust with their clients. Also, if you work with a fiduciary you’re more likely to end up with a lower cost in fees and with recommendations that are specific to you and your goals.
How to make sure your D.C. advisor is a fiduciary
Check reliable online sources
You can use a few online databases to find firms that are registered as RIAs:
- NAPFA.org (The National Association of Personal Financial Advisors)
- SEC (U.S. Securities and Exchange Commission) Advisor Database
Don’t be afraid to ask questions. The easiest way to find out if your advisor is a fiduciary is simply to ask. If your advisor says they are not a fiduciary, follow up and ask why. It’s important to understand who you’re working with and how your advisor handles clients and how they are getting compensated.
2. Understand the fees
Types of fees
There are five main ways that D.C. registered advisors charge for their services.
- Percentage of assets under management: a percent of the total assets you have in your account. This percent may follow a tiered schedule, where the higher your assets, the lower the percentage
- Hourly charges: a rate charged per hour
- Fixed fees: a set amount paid for a service
- Commissions: additional compensation earned for a purchase or a trade
- Performance-based fees: an additional fee if a specified benchmark is surpassed
How to ask what fees you pay
As the client, be direct in asking about your financial advisor's fees. Even fiduciary advisors, who must legally to disclose all fees and conflicts of interest, can do so in the fine print and not verbally. Be sure that you fully understand what fees will be involved with your financial advisor.
Here are questions to ask an advisor about their compensation:
How are you getting paid?
Do you earn commissions?
How much money are you and/or the company making to put me in this investment?
What are my total costs for working with you?
Fee only advisor in D.C.
Fiduciary and fee only means that the firm is bound by law to act in the best interest of clients. Fiduciary Advisors only receive compensation from the fees clients pay from their services. They do not earn commissions for recommending certain products, which means they are looking out for you first with no hidden fees.
The best financial advisor should always be upfront and transparent about their fees and make you feel reassured working with them.
If you can't get straightforward answers about fees from your advisor, this would be a red flag. You shouldn't just blindly trust anyone with your financial wellbeing, make sure you ask questions, get informed answers, and feel comfortable working with your advisor.
The best financial advisor in Baltimore should offer low fees to clients. We believe smart investors are the best investors and that high quality financial services should be offered at an affordable rate for clients to meet their financial goals.
3. Find the best financial partner for you in D.C.
When you're looking for the best financial planner, you should make sure they have a vast knowledge of tax, estate and even insurance. A financial planner will help you protect your family by taking advantage of best practices in Social Security, corporate and government insurance programs and third party products.
Select a fiduciary advisor to ensure they will not sell any third party products or take a commission for anything they recommend. This makes their financial planning and investment advice purely fiduciary and in your best interest. The best financial advisor should be on the same page with your goals and help you achieve them - putting you first always.
Finding someone to help with budgeting can be a daunting task. The good news is that the best financial advisor can help you with your budget to achieve your financial goals in a practical way through effective budgeting strategies.
Financial advisors provide custom financial planning to align your budgeting with your lifestyle, income, and future goals. Budgeting is the first step to creating a successful financial plan that you can stick with for impactful results towards achieving your financial goals.
When selecting the best financial advisor, you should consider if they value goal-based investments. This means that the advisor will actively align your investments to your specific financial goals. Your investments should always compliment these goals and be thoroughly planned out so your money works harder for you.
Finding an expert in estate planning can be difficult. But, a financial advisor can help you through the process and address any of your financial needs.
Estate planning, much like financial planning starts with a free consultation where we will help you align your assets and financial goals. From there, we will provide you advice on the best ways to ensure your financial estate does exactly what you want, whether that is leaving it to your heirs, a foundation or charity, all with the lowest tax possible.
4. Ask about no minimum investing in D.C.
No Minimum Investing
Are you interested in investing but don't think you have enough money to start? Don't worry, there are some investment firms that offer no minimum investing. Yes, that's right, no minimum to start investing.
Ask up front if your investment firm offers a no minimum. Starting early and regularly investing is the best way to have enough when you get set to make major life changes or retire.
Why no minimum investing is important
The best quality advisor should be able to work with you regardless of your income. This means you can invest at your own pace, with any amount of money you are comfortable with.
No one should be excluded from investing based on their net worth. No minimum investing serves as an equalizer, creating an opportunity for anyone to start investing and improve their financial wellness.
See the impact investing has when
you start now.
If you are looking for the best investment advisor or the best financial advisor in Baltimore, InvestEd is the best place to start your search. As a fiduciary, strive to provide the best investment advice and financial education to our community, clients, and whenever possible.
Are you looking for the best financial advisor? We understand that handling your finances can be a headache; which is why our reputable advisors provide practical advice, with your best interest prioritized.
If your search brought you here, take the next step and set up a free personalized financial planning session with our experienced advisor. We’ll never give you less than our best because we strive on being the best fit for you.
• Free financial planning
• No minimum investing
• Custom investment advice
• Low fees - always
• Free financial education
Are you looking for the best investment and financial advisor?
InvestEd's investment advisors have over 75 years of combined experience. Our Investment Advisors are fiduciary, fee only advisors that can help you with your investments. InvestEd believes that the fiduciary standard is the best way to work with a client. If you are looking for the best fiduciary investment advisor and the best financial advisor In Baltimore, you’ve come to the right place.
InvestEd is committed to:
• Providing top quality financial planning services
• Reliability. We put our clients first and want them to know they can access us anytime
• Offering an authentic experience and objective advice fit for your specific situation.
• Maintaining an inclusive environment that is judgement-free and meets your needs
Investing for all
Your typical Registered Investment Advisor requires a hefty investment deposit to work with them. We believe in leveling the playing field, and as such, require no minimum investment to get started.
InvestEd believes the sooner you start investing the better. With as little as $5 to start, you can make investing a part of you financial journey. Our investment advice is careful curated for you and your financial goals in mind to help you achieve them. No minimum investing requirement means there's nothing holding you back from investing in your future.
Our low & transparent fees
We combine the technology of leading robo advisor, Betterment, with a diversified portfolio of low-cost Exchange Traded Funds (ETFs). This combination allows your investments to stay in your name, with no fear or even questions about where your money is at all times. Once your InvestEd Betterment account is active and funded, no action is required on your end to pay for InvestEd’s services.
We are fee-only investment advisors with a .95% assets under management annual fee, one of the lowest for custom financial advice. We meet you where you are - at any stage of your financial journey.