FAQ's

TOP 10 FREQUENTLY ASKED QUESTIONS

Why should I use Stark Strategic Capital Management, Inc. (SSCM, Inc.) to help achieve my financial goals?

What types of services do you provide?

How often will you meet with me and who will be working with me?

Are you registered under, or regulate by, state or federal law?

If you were me, what questions would ask before hiring a financial planner or advisor?

How do I know what investments I own and how they're performing? 

Are my assets insured or protected in any way?

Who has access to my money and investments?

How do you handle my privacy?

Will you provide me with the financial planning services you will be performing in writing?

Q1: WHY SHOULD I USE STARK STRATEGIC CAPITAL MANAGEMENT, INC. (SSCM, Inc.) TO HELP ACHIEVE MY FINANCIAL GOALS? 

A1: First, as Certified Financial Planner (CFP) professionals, we are governed by a Board that requires us to maintain continuing education requirements and abide by a code of ethics in order to maintain our certification. Further, in order to acquire the right to use the CFP designation after one's name, all certificants are required to meet education and experience requirements and pass a rigorous two day, 10 hour exam; the typical pass rate of the exam is only about 55%. These requirements allow us to provide you with the comfort of knowing that we are always armed with the necessary knowledge and strategies needed to provide the peace of mind and security that comes with achieving your financial goals. You can view more about our owner and his professional background and qualifications by clicking here to view his professional biography.

Second, SSCM, Inc. is 100% independent and unaffiliated. This means that the company is not held captive, which can limit a financial planner's ability to help you. It is because of this that we believe our full independence and completely unaffiliated status with a broker or any other company allows us to remain as objective and conflict-free as possible. Our business has been intentionally structured this way since the beginning, allowing us to serve you in a way that is in your best interests.

Third, we work on a "full disclosure" basis. This means you know exactly how much we're paid for the services we provide to you. Many investors are unaware how much their advisor or financial planner is compensated for the advice and/or investments recommended to them, often-times not understanding that they paid far more than they would have had it been disclosed initially. We disclose all of our fees upfront and believe all planners and advisors should be willing to do so as well. That way, you will always be able to make an informed decision. 

Q2: WHAT TYPES OF SERVICES DO YOU PROVIDE?

A2: We believe in addressing each client's entire financial picture - from investments, tax planning, retirement and income distribution planning during retirement, risk management techniques using appropriate insurance vehicles, as well as evaluating your estate planning needs. We look at each situation from a comprehensive wealth management and financial planning point of view. Doing so, allows us to prepare a customized financial plan and develop strategies based on each client's specific needs. In addition, we can take a more modular approach for individualized services such as cash flow analysis or debt management, for example, when appropriate. You can view our list of extensive services by clicking here.

Q3: HOW OFTEN WILL YOU MEET WITH ME AND WILL BE WORKING WITH ME?

A3: Many financial planners and advisors meet with you only to pawn you off onto another junior associate. SSCM, Inc. believes you should meet and only work the most qualified person available. Except in cases where you need a referral to a qualified attorney (e.g., estate planning, corporate law attorney, etc.) or to another industry professional for, say, tax preparation, you will not be 'handed off' or be required to work with anyone other than with whom you initially meet. Furthermore, once you become a client we prefer to meet with you no less than quarterly during the first year and semi-annual during each year thereafter.

Q4: ARE YOU REGISTERED UNDER, OR REGULATED BY, STATE OR FEDERAL LAW?

A4: Yes. By law, all investment advisors as well as their representatives must be registered with the appropriate securities division at the Attorney General's Office for their respective state(s) and/or the federal agency known as the Securities and Exchange Commission (SEC). This is required for all financial planners and advisors giving financial advice for compensation. SSCM, Inc. is currently registered in the state of Maryland.

Q5: IF YOU WERE ME, WHAT QUESTIONS WOULD YOU ASK BEFORE HIRING A FINANICAL PLANNER OR ADVISOR?

A5: Any competent financial planner or advisor should be willing to meet with you for an initial consultation at no charge. During your meeting, you should consider asking questions surrounding five main areas, including:

A5: You should seek answers to several broad areas, drilling to down the specifics as you deem appropriate, including:

About the Advisors Practice
What kinds of clients does the advisor service? Will he give you permission to speak with those clients? Ideally, you want someone who has experience in helping people with your specific and unique set of circumstances.

Experience, Licenses, and Education
You should ask how long the advisor has been in practice, what his professional credentials are, and whether or not the person you're interviewing is more of an insurance agent or stockbroker than a comprehensive financial planner. In short, you want to make sure that you know the person you're going to hire is competent, experienced, and qualified.

Products & Services
You want to make sure that the tools you need to be successful are available from that particular advisor's practice. Does he use mostly insurance products, mutual funds, individual stocks and bonds, or a mix of them, and why? Further, does he view everyone's situation as unique or does he make the same recommendations for everyone?

Compensation of the Advisor
Commissions? Hourly? Retainer? A percentage of assets under management? Probably even more important is making sure the advisor's compensation is fully disclosed? You should ask how much the advisor will make and he should be willing to disclose it, allowing you to make an informed decision and ensure the he is fairly compensated for the work he performs on your behalf.

Regulatory & Compliance History
Has the advisor ever been disciplined for improper conduct. His regulatory history should be clean and he should be in good standing with his professional and trade organizations.

Q6: HOW DO I KNOW WHAT INVESTMENTS I OWN AND HOW THEY'RE PERFORMING?

A6: With all the turmoil and various Ponzi schemes in the news recently, this is a fair question.

First, the custodian where your investments are held will send you a portfolio statement on either a monthly or quarterly basis. This allows you to keep apprised of exactly what you own, their values, and of any activity in your account.

Second, if SSCM, Inc. is helping to manage your portfolio, we will typically receive duplicate statements of your account detailing your portfolio's value and your investments' details. This allows us to monitor your portfolio as well.

Third, we are able to provide either quarterly or semi-annual portfolio reviews as another service to you so that you know exactly how your investments are performing, how they're allocated, and have the appropriate benchmarks with which to compare your investments' performance.  

Q7: ARE MY ASSETS INSURED OR PROTECTED IN ANY WAY?

A7: Your assets are protected in three ways. The first way is by a federal agency call the Securities and Investor Protection Corporation, or SIPC (pronounced: SIP-ICK). The SIPC was established in 1970 under the Securities Investor Protection Act and protects investors securities up to $500,000 against theft or fraud. You can view SIPC's website here for how they protect investors like you.

The second way you're protected is for the loss of principal in any FDIC insured accounts due to a bank's failure. This limit has historically been equal to $100,000 per depositor, or something called category of ownership, but has been temporarily increased to $250,000 per depositor. You can read here about FDIC insurance basics or here about how the FDIC categories different types of ownership. You can also view their list of Frequently Asked Questions here.

Finally, depending on where your assets are custodied, the custodian may have purchased additional private insurance to protect your assets in the event of theft or fraud.  

Q8: WHO HAS ACCESS TO MY MONEY AND INVESTMENTS?

A8: Absolutely no one ever has access to your money and investments but you. In fact, any investments or changes to your account and portfolio can only be made after your authorization. We do not have authority, nor are we able, to make trades or withdraw money from any client's account at our own discretion at any time.

Q9: HOW DO YOU HANDLE MY PRIVACY?

A9: Privacy concerns are extremely important to us. We maintain a secure environment with security encryption, updated firewalls, virus, and spyware protection. Most client documents are scanned and the originals are either shredded or returned to the client. We are also required to have a privacy policy, which prohibits us from disclosing any non-public personally identifiable information except as required by law or to do business with you. Other information cannot be released without your express, written consent. Finally, the privacy policy is provided annually to all clients and at the beginning of each client engagement.

Q10: WILL YOU PROVIDE ME WITH THE FINANCIAL PLANNING SERVICES YOU WILL BE PERFORMING IN WRITING?

A10: Yes! In fact, you will receive a proposal for your review and approval prior to any work being conducted. Further, all clients must sign a Financial Planning & Investment Advisory Agreement (FP&IAA) prior to any work being performed or services provided. These two measures allow both parties to fully understand and acknowledge the scope, the limitations, and other conditions in advance.