FAQ

A fiduciary financial advisor can help you create a blueprint to a more secure financial future. A fiduciary financial advisor is distinct from other types of “financial advisors,” since a fiduciary acts in your best interest. District Capital is a fiduciary. We can help you save money, build your wealth, achieve your life goals, and avoid costly financial mistakes.  

Absolutely. Hiring a personal financial planner is a big decision. You should definitely do your due diligence. Feel free to schedule a free discovery call with us, and we’ll try to answer all your questions.

A financial planner is a professional who helps individuals and families reach their life goals by making smarter and holistic financial decisions. A good financial planner will give you advice on cash, debt, credit, taxes, investments, retirement, insurance, and estate planning. A financial advisor is usually associated with those who manage investment accounts of high-net-worth people.

We will give you advice on cash management, debt and credit management, tax planning, retirement planning, investments, insurance, estate planning, and identity theft protection. You will receive a personalized and detailed Personal Financial Plan via Monday.com (usually containing more than 30 action items). We will also share with you a pdf of your personal financial plan.

We offer pro-bono financial planning for individuals who earn less than $56,000 per year and families who earn less than $75,000 per year.

CFP stands for Certified Financial Planner. It is a highly-respected financial planning designation. A CFP® professional has undergone a rigorous curriculum and has met extensive experience requirements.

A fee-only financial planner is a financial advisor who does not earn commissions. A fee-only financial planner offers transparent pricing with no conflicts of interest. 

Find out four reasons why a fee-based financial planner might be your best choice.

A fiduciary financial advisor acts in your best interest and avoids conflicts of interest. Since a fiduciary financial planner is not affiliated with a financial institution, s/he can look at the entire marketplace and recommend the best financial products.

We believe so.
One study showed that those who worked with a comprehensive financial planner built about four times more wealth, than those who had no plan. This can be done through a combination of low-cost portfolio construction, rebalancing, tax efficiency, and behavioral coaching. Our blog goes into more detail about why we believe financial planners are worth it.

Traditional financial advisors typically require a minimum of $500,000 or $1,000,000 in investable assets. Modern fee-only financial planners are doing away with minimum investable assets, and instead opting for a fixed annual fee paid monthly. This is making financial planning more accessible to young and mid-career professionals. District Capital does not have any investment minimums.

If your financial advisor uses a well-regarded custodian with strict security protocols, it will be hard for a financial advisor to steal your money. A custodian with strict security protocols will require your actual signature before transferring to a third-party account. This issue becomes moot if you work with a modern fee-only financial planner. A modern financial planner helps you with retirement planning and investment advice, without having custody of your assets. So there is very minimal risk of theft.

Here are the top 3 certifications to look for when considering a financial advisor.

1) CFP® – Certified Financial Planner
2) AFC® – Accredited Financial Counselor
3) ChFC® – Chartered Financial Consultant

A certification that would be a major plus is the CFA designation – Chartered Financial Analyst. The CFA
designation is one of the highest distinctions in the investment management profession.

In the Washington, DC area, we are aware of only five CFP®, AFC®, or ChFC® professionals with a CFA designation. One is the Managing Partner of District Capital.

Finding a financial planner can be complicated and maybe even overwhelming. Here are some things to look for in a financial advisor.

1. Look for a fiduciary financial advisor: Fiduciary financial advisors have a sworn oath to act in your best interest.
2. Check for credentials: Unlike other professions, there’s not one specific way to become a financial planner. There are over 200 different designations. Look for professional credentials such as chartered financial analyst (CFA), certified financial planner (CFP) or accredited financial counselor (AFC). These designations also require their holders to act as a fiduciary.
3. Understand how the financial advisor gets paid: Financial advisors are paid in three different ways - commissions, fee-based, and fee-only. Our advice is to look for fee-only financial advisors. They only get paid through the fee. There are no commissions, kickbacks, or referrals.

Here are some questions that you might want to ask a potential financial advisor.

While you might be able to do your finances by yourself to try to save money, there are so many benefits to hiring a financial planner. Doing it yourself involves a serious commitment in time and energy. You may miss important information that you didn’t know to look out for and it may also cause you a lot of additional stress. Is this how you’d like to be spending your precious time? Just like you are an expert in your profession, financial planning is our bread and butter.

We’ve spent years honing this craft and it’s what we do best. We help you not only elevate your finances, but also save you time so that you can do the things that you enjoy.

Yes, of course. Our example clients are just common situations that we see but we do work with a variety of clients. Feel free to schedule a complimentary discovery call to see if we are a good fit for you.