Based in Annapolis, Maryland, Scarborough Capital Management manages nearly a billion dollars in client assets on a discretionary basis. This fee-based firm, which is on our list of the top financial advisors in Annapolis, focuses on portfolio management, financial planning and consulting services.
Scarborough Capital Management Background
Scarborough Capital was formed in 1989 as The Scarborough Group, Inc. The firm changed its name to Scarborough Capital Management, Inc. in 2008. Its five owners are Ryan Ansted, Ian Arrowsmith, Gregory Ostrowski, James Sprinkel and Shawn Walker. The firm offers securities through its broker-dealer, Independent Financial Group, LLC (IFG).
Scarborough Capital’s team has earned certifications including chartered retirement planning counselor (CRPC), certified financial planners (CFP), certified college planning specialist (CCPS), one chartered mutual fund counselor (CMFC), accredited investment fiduciary (AIF), retirement income certified professional (RICP) and chartered federal employees benefit specialist (ChFEBC).
Scarborough Capital Management Client Types and Minimum Account Sizes
Scarborough Capital serves individuals and high-net-worth individuals, corporations and other business types. The firm doesn’t have a minimum account size requirement.
Services Offered by Scarborough Capital Management
The firm offers the following advisory services:
- Financial planning
- Portfolio management
- Selection of other advisors (including private fund managers)
- Educational seminars/workshops
Scarborough Capital also offers 401(k) and 403(b) Savings Plan Management services for those using employer-sponsored retirement plans.
Scarborough Capital Management Investment Philosophy
The firm mainly relies on asset allocation and diversification when managing client portfolios. Its main investment strategies include long-term purchases and short-term purchases. In its effort to build portfolios with efficient characteristics of risk and return, Scarborough Capital says it evaluates the volatility of different investment options and how they behave.
The firm also utilizes prospectuses, annual reports and U.S. Securities and Exchange Commission (SEC) filings when conducting investment research.
Fees Under Scarborough Capital Management
The firm charges a maximum annual fee of 2.50% of assets for portfolio management services, but the firm does not provide an exact fee schedule. The average investment advisory fee is 0.95%, according to a 2018 study of 1,500 firms, so keep that in mind when you find out what your fees would be here.
For financial planning services, the fees are generally negotiable and range from $0 to $2,500. Scarborough Capital’s consultation services have hourly fees ranging from $250 to $500, and the firm charges no more than $10,000 for educational seminars and workshops.
For Savings Plan Management services, the firm offers three different fee arrangements. It offers annual, quarterly and monthly rates for those with assets from $0 to more than $500,000. Annual fees range between $356 and $485, while quarterly fees range from $100 to $135. Monthly fees span between $35.99 and $45.99.
What to Watch Out For
As of its most recent filings with the Securities and Exchange Commission, Scarborough Capital reported no disclosures of legal or disciplinary action.
One thing to note: as brokers and insurance agents, some advisors collect transaction-based fees, which pose potential conflicts of interest. That said, the firm has a fiduciary duty to work in clients' best interests. Also, advisors will tell clients that they aren't obligated to purchase any investment or insurance products recommended by advisors or IFG.
Opening an Account at Scarbourough Capital Management
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All information was accurate as of the writing of this article.
Tips for Investing
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- When researching advisors, keep an eye out for certifications. They aren’t required, so advisors who earned them have specialized training. They may also be held to higher fiduciary standards. To learn more about accreditations, read our article on the top 10 certifications.
