Frequently Asked Questions

What is Kendall Asset Management?
Who is the principal?
What are your professional credentials?
What services does KAM provide?
Can KAM rollover my 401(k) plan to an IRA?
Can KAM help set up or manage an IRA?
How can Kendall Asset Management help me?
What will our first meeting cost?
How many clients does KAM have?
Wouldn’t I be better off with a large, nationally known broker-dealer or investment advisor?
What is KAM's investment philosophy?
Can KAM help me minimize tax liability on my investment earnings?
Can’t I manage my own investment portfolio?
What does KAM have to offer that I can’t get from a large broker-dealer or investment advisor?
If I decide to begin a relationship with KAM, how do I transfer my existing accounts?
Will I have online access to my accounts managed by KAM?
Should I consider setting up a trust for my family?
Is a 529 Plan the best way to fund future college expenses?
What investments does KAM recommend for its clients’ portfolios?
What is the minimum account size KAM will manage?
Do you expect to manage a clients total portfolio?
Does KAM take custody of each client's assets?
What will it cost to begin a relationship with KAM?
Do you sell any financial products, receive commissions, or accept referral fees?
What should I expect if I engage KAM to prepare a financial plan?
What information will I need to give KAM?
What information will you need before our first meeting?
Can you describe KAM's typical client?

  • What is Kendall Asset Management?
    KAM is an independent Registered Investment Advisor located in Abingdon, VA. Our CRD number is 143628.  Please check us out on the web.  Kendall Asset Management is a trade name of LDK, Inc., a Virginia corporation.  KAM provides comprehensive financial planning services and portfolio management services. We do not sell securities, nor do we accept commissions from companies that do.
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  • Who is the principal?
    David L. Kendall, Ph.D., is the primary financial planner and investment advisor.  He is also a professor of economics and finance at the University of Virginia’s College at Wise where he teaches investment analysis, financial management, and economics.
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  • What are your professional credentials?
    KAM’s principal, David L. Kendall, holds the BA, ME, and Ph.D. in economics and statistics. He currently teaches investment analysis and financial management at the University of Virginia’s College at Wise.  His approach to investment analysis and investment advice is based on objective, scientific research that has been conducted over many years by the nation’s top financial economists.  Click here for a look at Dr. Kendall’s resume.
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  • What services does KAM provide?
    Financial planning and portfolio management are our two primary services. We also offer advice about employer stock options, 401(k) investments, IRAs, and other employee benefit decisions. We also refer clients to other professionals who can help with tax preparation, wills and estate planning, banking, mortgage financing, and insurance.
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  • Can KAM rollover my 401(k) plan to an IRA?
    If you have left behind a 401(k) or 403(b) retirement plan with a previous employer, yes, you can roll it over to a personal IRA.  We will be happy to help you explore your options.
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  • Can KAM help set up or manage an IRA?
    In a word, yes. 
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  • How can Kendall Asset Management help me?
    We can help you accumulate, grow, protect, enjoy, and transfer your wealth. We can help you define and understand your financial goals.  We can help you understand your personal risk profile, which is critically important for prudent investing.  We can help you understand investment strategies that work, monitor your long-term progress, and help you make mid-course adjustments when warranted.
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  • What will our first meeting cost?
    KAM charges nothing for our first meeting with you.  Our first meeting gives you a chance to evaluate us, and gives us a chance to learn whether we can be of service to you. We will offer no advice in our first meeting, but we will do our best to get to know you and give you a chance to get to know us.
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  • How many clients does KAM have?
    KAM began in the summer of 2007, so we are a new registered investment advisor.  We currently have fewer than ten clients, which means we can and will give you an enormous amount of personal, expert attention.
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  • Wouldn’t I be better off with a large, nationally known broker-dealer or investment advisor?
    Maybe, but we’re biased, and don’t think so.  KAM can and will give you personal attention that often just isn’t available from nationally known broker-dealers or investment advisors. We’ll always return your calls and come see you when you want to see us.  And we won’t be focused on selling you our “house” mutual funds or other financial products to earn a commission, since we don’t sell securities and we don’t accept commissions from third parties.
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  • What is KAM's investment philosophy?
    KAM believes that prudent investing begins with clearly defined financial goals. Four fundamental principles guide KAM’s financial advisory practice:  (1) help clients define and understand their financial goals; (2) match each client to the right portfolio; (3) minimize costs and tax liabilities of investing; (4) accept only diversified, compensated investment risk.
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  • Can KAM help me minimize tax liability on my investment earnings?
    KAM believes that minimizing tax liability on investment earnings should be a key goal for most investors.  KAM cannot and does not give tax advice, but we can and do work hard to help you understand your tax management options and help you implement them. We can work with your tax advisor — or refer you to a professional tax advisor if you don’t already have one — to ensure that we use every legal strategy to reduce tax liability on your investments.
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  • Can’t I manage my own investment portfolio?
    Of course, if you have the knowledge and skills, and if you have the time and inclination to do so.  The Internet provides a great and growing abundance of investment information.  Many broker-dealers will buy and sell securities for you for a reasonable fee for trade execution.  Yet, many people prefer to know their investment portfolio is under management by experts who understand investing, enjoy what they do, and who stay up to date on the ever changing world of investing. KAM can free you to concentrate on what you enjoy and do best while we take care of what we do best for you.
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  • What does KAM have to offer that I can’t get from a large broker-dealer or investment advisor?
    KAM believes that even small investors deserve expert investment advice and portfolio management services at a reasonable cost.  Many investment advisors require a minimum portfolio value that’s well above the average household’s accumulated savings.  Although KAM does not turn away “high-net-worth” clients, we also do not turn away “low-net-worth” clients.  KAM gives every client the same expert attention and service, regardless of the value of assets under management for the client.
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  • If I decide to begin a relationship with KAM, how do I transfer my existing accounts?
    KAM will prepare all transfer documentation you will need to sign. These documents, called ACAT Forms, give us your permission to transfer your assets from existing custodians. It may take up to 10 business days to complete a transfer. We do the paperwork; you will not have to trouble yourself with contacting current custodians of your financial assets.
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  • Will I have online access to my accounts managed by KAM?
    Yes.  KAM uses Scottrade, Inc. to provide brokerage and custodial services for our clients.  We establish one or more accounts with Scottrade, Inc. in your name.  You always have complete access to your accounts.  In fact, should you wish to do so, you could execute trades in your accounts yourself, even though most clients will not prefer to do so. Scottrade Inc. is a member of FINRA and SIPC.
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  • Should I consider setting up a trust for my family?
    Perhaps. People often start looking into trusts in their late 50's. We think it is prudent to consider a trust when your net worth exceeds $1 million. That number is not as large as it may seem when you consider total assets, including real estate holdings, financial investments, insurance, and possibly business assets. KAM cannot and does not offer legal advice, but we can work with your attorney or refer you to a qualified trust attorney if needed.  We think estate plans should be reviewed at least every five years and sooner if major changes in your financial circumstances occur, such as selling a business, retiring, divorce, death in the family, or moving to another state.
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  • Is a 529 Plan the best way to fund future college expenses?
    Not necessarily.  It will depend on your individual circumstances.  We can help you understand and reach the best decision.
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  • What investments does KAM recommend for its clients’ portfolios?
    In addition to real estate holdings you may already have or plan to acquire, we generally recommend index exchange traded funds (index ETFs) and no-load, low-cost, index mutual funds for our clients’ portfolios. We look forward to helping you understand why.  In special circumstances, we may also recommend stocks or bonds of individual companies.
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  • What is the minimum account size KAM will manage?
    Our minimum portfolio is $1,000, reserved especially for young investors just getting started. Most clients have portfolios substantially larger than our minimum. At present KAM’s average size portfolio under management is $25,000.
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  • Do you expect to manage a clients total portfolio?
    Not necessarily.  Most clients value our comprehensive approach to financial planning and retain us to manage all their investments according to a comprehensive financial plan.  But we may also manage only a share of some clients’ portfolios. We also sometimes set up an initial portfolio for clients, which the client then manages without additional advice from KAM, although most clients prefer to continue their relationship with us.
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  • Does KAM take custody of each clients assets?
    No.  KAM is a non-custodial investment advisor. Most of our clients’ financial assets are held in custody by Scottrade, Inc., in one or more accounts in the client’s name.
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  • What will it cost to begin a relationship with KAM?
    A comprehensive financial plan that addresses all aspects of a family's personal finances typically costs $1,000 to $10,000 and takes from 2 to 12 months to complete, generally involving 6 to 10 meetings.

    Less extensive, targeted projects, such as a capital needs analysis, may have fixed project fees. When appropriate, we also work on an hourly basis.  Our hourly consulting fee is $200 per hour.

    We charge standard portfolio management fees calculated as an annual percentage of assets we manage for you. Fees, paid quarterly, are set at an annualized rate:

  • 0.75% on the first $100,000
  • 0.70 % on the next $150,000
  • 0.65% on the next $250,000
  • 0.60% on the next $500,000
  • 0.55% on the next $1,000,000
  • 0.50% on the next $2,000,000
  • 0.25% on the amount greater than $4,000,000
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  • Do you sell any financial products, receive commissions, or accept referral fees?
    No. We work exclusively on a fee-for-service basis. Your interests are our only interests.
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  • What should I expect if I engage KAM to prepare a financial plan?
    We begin with a initial meeting to get acquainted. In that meeting, we'll review information you provide about your financial circumstances (such as taxes, insurance, investments, estate planning, and employee benefits). We will begin to identify and understand your financial goals.

    In additional meetings we will work with you to help you define, understand, and prioritize your financial goals. We'll meet with you over several weeks or even months to get it right. We'll review the challenges and opportunities you face, analyze feasible alternatives, and recommend specific actions to maximize the likelihood that you will achieve your goals. We will also help you implement our recommendations, if you choose KAM to implement your plan, but you always have the freedom to implement your plan yourself or with the help of some other financial advisor.

    If you choose to engage KAM’s help to implement your plan, we will meet with you at least once each year to assess progress, review and update your plan as warranted, and recommend additional actions that may have become appropriate for you due to changes in your life or financial circumstances.
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  • What information will I need to give KAM?
    That depends on how you want us to help you. To serve you best, we need to understand all about your financial goals and circumstances. If you want us to prepare a comprehensive financial plan, we’ll want to see past tax returns, wills, business agreements, insurance contracts, recent brokerage statements, recent bank statements, employee benefit statements, recent pay stubs, and other documents that summarize your financial circumstances.

    If you only want KAM to manage your investment portfolio, we will require less information, but we will still need to understand your investment goals and risk profile.  To make it easier for you to provide the information we need to serve you professionally, we provide online or hard copy questionnaires for you to complete.  We understand that this may sound a bit daunting, but we will help you every step of the way.  Would you want financial advice from someone who doesn’t understand your goals and your financial circumstances?
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  • What information will you need before our first meeting?
    We ask that you to complete a short, “getting to know you” questionnaire before our first meeting. You can do this online on our web site, or you can complete a hard copy questionnaire that we will mail you upon request in advance of our first meeting.  Your responses will give us an overview of your financial circumstances and a preliminary idea of what you want us to help you accomplish.
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  • Can you describe KAM’s typical client?
    We work with people of all ages and financial circumstances. Some of our clients are young people just getting started with building their financial future.  Many of our clients are in the "accumulation" stage of life—ranging in age from 30 to 55 years old.  But many are already retired, needing help with managing their hard-earned retirement nest egg. We work with single people and married couples (we expect to meet with both spouses if you are married). Many of our clients are corporate executives, professionals, or owners of their own businesses. For the most part, our clients are successful people who either don’t have enough time to devote to their financial goals or who simply recognize the benefits of getting professional financial planning or investment portfolio management
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