At Kachkovsky & Fisher, we are here to act as long-term stewards of your assets through comprehensive financial planning, sophisticated wealth management and strategic legacy planning. We are not salespeople; rather, we are professional financial advisors dedicated to the clients we serve.
Our commitment to your best interest is the result of not only our own closely held convictions and beliefs, but also the standards to which the state securities authorities and the Securities and Exchange Commission (SEC) hold us as a Registered Investment Advisor (RIA).
The Investment Advisers Act of 1940 defines an RIA as a “person or firm that, for compensation, is engaged in the act of providing advice, making recommendations, issuing reports or furnishing analyses on securities, either directly or through publications.” Under the act, an investment advisor has a fiduciary duty to clients – a fundamental obligation to always act in the clients’ best interests.
In contrast to brokers, independent, fee-only RIAs are legally required to act as fiduciaries. Independent, fee-only advisors should also be more closely aligned with their clients because they are generally free from the conflicts, constraints and pressures that brokers face. Because we are independent, we are not bound to any specific investment products or family of funds. Whether you need assistance with retirement planning, a complicated tax situation, estate planning or borrowing, managing assets at multiple places, or intergenerational wealth transfer, we have the freedom to choose from a wide range of resources in order to tailor our advice based on what’s best for you.
It is regrettable, however, that this is the exception rather than the norm in the financial services industry because the majority of advisors are brokers who are not required to act as fiduciaries and are not held to a "fiduciary” standard. Some advisors are also “dually registered.” This means they act as fiduciaries at times and at other times act as brokers who are compensated in different ways for investment advice. This can be problematic because you'll need to determine whether any advice you receive is for your benefit or because they will receive a commission on the sale of a specific investment.
The question then, is this: Do you want to work with an advisor who may act in his or her best interest part of the time or one who works in your best interest all of the time?
We unwaveringly believe in the following: The advisor must eternally and indisputably be on the side of the client, always acting in the capacity of a fiduciary when providing investment advice; the client should be fully aware of the fee they are paying for advice; and the advisor should never be compensated in any other way for the investment advice. At Kachkovsky & Fisher, our clients know exactly how we are compensated, we always serve as a fiduciary regarding their investments, and we never receive other compensation from third parties for investment advice.
Kachkovsky & Fisher’s fee-only structure eliminates a potentially significant conflict of interest given that our compensation is based on the value of your account and not on commissions generated through trading activity. We take great pride in the transparency of our compensation for managing your accounts for a fee. Understanding what you are paying for in exchange for our services is essential to building a trusted long-term relationship.
In keeping with our commitment to a fee-only practice, Kachkovsky & Fisher donates to charity 100% of any upfront commissions derived from its insurance practice, on products such as term life insurance, permanent life insurance, disability and long-term care insurance. Being a fee-only fiduciary when it comes to investment management, unlike a commissioned broker or a hybrid financial advisor, we are compensated only one way. As it relates to protection planning, some clients require insurance to protect their families, assets, incomes and quality of life. The charitable organizations to which we donate 100% of profits derived from insurance-related activities include the Phoenix Children’s Hospital, Mount Evans Home Health Care & Hospice, Wounded Warrior Project and the nonprofit Charity: Water. Through this endeavor we are able to have a positive impact on the communities in which we live and on others around the world.