Do you have money to invest? Not sure how to do it? Many people hire someone to help. When searching for the right person to manage your investments, there are a few important things to keep in mind.

Don’t hire a salesperson.

When a financial advisor gets paid based on the product that you buy and he is the only one advising you what to buy, a conflict of interest arises. Broker dealers and fee-based advisors are held to a suitability standard, meaning they only have to sell a suitable product. Just because it’s suitable, doesn’t mean it’s in your best interest. When looking for an investment advisor it is important to choose a fiduciary. Unfortunately, only a small percentage of financial advisors meet all of these criteria.

What is a fiduciary?

A fiduciary is a financial advisor required by federal and state law to act with undivided loyalty to the client. This law insists that the advisor must act solely in the best interest of the client, even if that interest is in conflict with the advisor’s financial well-being. Advisors must disclose how they are compensated and any corresponding conflicts of interest prior to and throughout a business engagement.

At Davis Capital Management, our status as a fiduciary investment advisor is what really sets us apart from everyone else. We are transparent and legally bound to act in the client’s best interest.

Fee-only compensation minimizes conflict of interest. A fee-only financial advisor charges clients directly for his or her advice and ongoing management. There are no other financial rewards provided, directly or indirectly, by any other institution. Fee-only financial advisors are selling only one thing: their knowledge.

They may do this with different compensation models, however. Some advisors charge an hourly rate, others charge a flat fee or annual retainer and some charge an annual percentage based on the assets they manage for you. All fee-only advisors will disclose their form of compensation upfront and clearly. With fee-only registered investment advisors you can rest easy, knowing the advice they are giving you is in your best interest, and not in the best interest of their own pocketbooks.

Education and experience are also extremely important when choosing a financial advisor. At Davis Capital Management, everyone who is part of the investment and planning process must hold a college business degree from an AACSB accredited business program.

When choosing a financial planner, you also want to make sure that you are dealing with someone who is acting in your best interest – not someone who is going to sell you a product and then forget they ever met you. At Davis Capital Management we make sure we get to know our clients and their individual needs before we even start the process. Financial plans are an ever changing process, so we make sure we have intimate knowledge of our clients and their families so that when changes come, we are able to help guide clients in the right direction.

Davis Capital Management is not just a group of financial planners. We are also investment managers. We do not place clients in mutual funds and subject them to paying fees for a planner and an investment manager. By using individual stocks and bonds, we are able to create a more tax savvy portfolio, manage risk more efficiently and lower client expenses.

As a fee-only advisor we will give you a fixed price for services, regardless of the solution we recommend, meaning you won’t have to worry about conflict of interest. The success of our business relies solely on your good word of mouth and how well we treat you. Davis Capital Management is committed to customer service, governed by ethics and driven by results. Let us personalize your investment plans and get you on the right financial track today.


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