Frequently Asked QuestionsQ. Why should I engage Kalorama Wealth Strategies? A. When you hire a financial advisor, some of the criteria that should be considered include:
Q. Why the name Kalorama? A. Kalorama in Greek means "beautiful view." Through our planning process, our goal is to provide A Beautiful View to Your Financial FutureSM. Kalorama is also a neighborhood in Northwest Washington, D.C., overlooking the city to the south and Rock Creek Park to the north and west. The name was originally adopted in 1807 by the owner of the Kalorama Estate at 23rd and S Streets. In the 1920s, some of the finest mansions in the city were built for the city's wealthiest and most powerful families. Today, many of the homes continue as residences while others are now elegant embassies, many of which still have ballrooms, grand staircases, and circular driveways. The neighborhood has been home to seven Presidents (more than any other in the country, excluding the White House): Herbert Hoover, Franklin D. Roosevelt, Warren G. Harding, William Howard Taft, Woodrow Wilson, Harry S. Truman, and Dwight D. Eisenhower. The Wilson home in the 2300 block of S Street is a museum which is open to the public. A landmark at the north end of the neighborhood is the Taft Memorial Bridge, notable for the stately lion sculptures at either end. Constructed between 1897 and 1907 as the "Connecticut Avenue Q. What do all those initials after David's name signify? A. Certified Public Accountant (CPA) licenses are issued by each state after a candidate completes a rigorous examination. Experience and education requirements are dictated by each state. The CPA examination program is developed by The American Chartered Financial Analyst® and CFA® are trademarks of the CFA Institute. To earn the CFA charter, candidates must sequentially pass three, six-hour examinations that are widely considered the most rigorous in the investment profession. They must also have completed a minimum work-experience requirement of three to four years in the investment decision-making process and have signed a commitment to abide by the CFA Institute Code of Ethics and Standards of Professional Conduct. (http://www.cfainstitute.org/ and http://www.cfainstitute.org/centre/ethics/code/index.html) CERTIFIED FINANCIAL PLANNERTM and CFPTM are certification marks owned by the Certified Financial Planner Board of Standards, Inc. (CFP Board). To earn these marks, a candidate must meet certain education, examination, experience, and ethics standards established by the CFP Board. The examination consists of a rigorous two-day, 10-hour exam covering the financial planning process and topics related to investments, retirement planning, employee benefits, tax planning, insurance, and estate planning. Certificate holders must have three years experience in the financial planning process and must adhere to the CFP Board's Code of Ethics and Professional Responsibility and Financial Planning Practice Standards. (http://www.cfp.net/, http://www.cfp.net/learn/ethics.asp, and http://www.cfp.net/learn/standards.asp) Consumers should be aware that anyone can assert that they are a "Financial Planner." Therefore, it is imperative that a consumer differentiate between a planner who has earned the CFP® marks and one who has not. Chartered Realty InvestorSM and CRISM are certification marks owned by the Chartered Realty Investor Society. A CRI charter holder is a fiduciary participant in the real estate, investment decision-making and/or implementation process. To earn the CRI charter, candidates must have completed certain educational and work-experience requirements, as well as sequentially pass two, four-hour examinations. Charter holders must also adhere to the Society's Code of Ethics. (http://www.crisociety.org/) Q. Who is Medallion? A. David M. Taube is an Investment Adviser Representative with Medallion Advisory Services, LLC (Medallion), a wholly-owned subsidiary of TMG Holding Company, Inc. Medallion is a Registered Investment Adviser which provides Kalorama Wealth Strategies with back-office, administrative support services, including portfolio management accounting and performance reporting. Kalorama and Medallion are not affiliated companies. Q. If I am an investment advisory client, who holds my money? A. Independent Registered Investment Advisers such as Medallion enter into agreements with a custodian to provide asset custody services, transaction execution, and back-office services to maintain records. Medallion has agreements with Fidelity Brokerage Services, LLC to provide services related to your account(s). Boston-based Fidelity is among the world's largest financial services firms. Neither Kalorama nor Medallion ever touches your money; you must authorize all actions taken in your portfolio. Q. I've heard of financial planning, but what is investment planning? A. The focal point of any financial strategy is the investment plan — how your assets will be invested to achieve your financial goals. Kalorama's specialty is the development and implementation of your investment and/or retirement plan, along with the management of your assets to help you achieve your financial goals. Kalorama can also assist you with other aspects of your financial plan, including cash flow management and net worth analysis, insurance review, tax analysis (we do not prepare tax returns), and estate plan review. Q. Do you prefer mutual funds to individual securities? A. We believe that passively- and actively-managed mutual funds and exchange-traded funds (ETFs) are suitable for the majority of investors. These investments offer full-time professional management, the ability to globally diversify, and generally same-business-day marketability and liquidity. If your situation warrants, individual stocks and bonds may be held in your portfolio. Q. How do you select the investments? A. We select investments through a rigorous quantitative and qualitative analysis designed to identify top-performing no-load mutual funds and exchange-traded funds. The ongoing analysis is designed to result in the selection of investment managers who are specialists in their asset class or style. Q. Do you discuss proposed transactions before they are executed? A. All investment advisory clients enter into a non-discretionary agreement which requires us to check with you before any transactions are executed. Q. Why should I hire you to manage my portfolio when I could purchase investments on my own? A. There are several advantages to be gained from a relationship with an investment advisor who adheres to a multiple-asset-class investment approach. Compare the following with the services you may be receiving from your current advisor or stock broker:
Q. If I prefer to manage my own investments, can I engage Kalorama for planning services? A. Yes. All of our other services are available on an hourly basis. |
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