Denver Investment Advisors LLC: A Profile

Denver Investment Advisors LLC (DIA) is an independent, fee-only Registered Investment Advisor (RIA) firm based, as the name suggests, in Denver, Colorado. They provide financial planning and investment management services to individuals, families, and institutions. Understanding their core principles and services is crucial for anyone considering engaging their expertise.

Core Philosophy and Approach

DIA generally emphasizes a long-term, disciplined investment strategy, typically rooted in diversification and risk management. Their investment philosophy typically leans towards evidence-based investing, often leveraging academic research and historical data to inform portfolio construction. This generally translates to utilizing broadly diversified, low-cost investment vehicles such as index funds and Exchange Traded Funds (ETFs). They avoid trying to “time the market” or pick individual stocks, believing that a consistent, well-allocated portfolio offers better long-term outcomes.

Services Offered

DIA typically provides a comprehensive suite of financial planning and investment management services, which may include:

• Financial Planning: This involves developing a personalized financial plan tailored to the client’s specific goals, risk tolerance, and time horizon. The plan might cover retirement planning, education funding, estate planning, insurance needs, and tax optimization strategies.
• Investment Management: DIA constructs and manages investment portfolios based on the client’s financial plan. They typically handle asset allocation, portfolio rebalancing, and ongoing monitoring of investments.
• Retirement Planning: Helping clients plan for a secure and comfortable retirement is a core service. This includes projecting retirement income needs, optimizing retirement savings strategies, and managing retirement accounts.
• Estate Planning: While not directly providing legal advice, DIA can help clients coordinate with estate planning attorneys to develop comprehensive estate plans that address wealth transfer, minimizing estate taxes, and ensuring their wishes are carried out.
• Tax Planning: They can help clients minimize their tax liabilities through strategic investment decisions and tax-efficient planning. They often collaborate with clients’ CPAs or tax advisors.

Fee Structure

As a fee-only advisor, DIA is compensated solely by fees paid directly by their clients. This fee structure is generally considered to be more transparent and aligned with the client’s best interests, as it eliminates potential conflicts of interest that can arise from commission-based compensation. Fees are typically based on a percentage of assets under management (AUM). The specific fee schedule can vary depending on the size of the account and the complexity of the services provided. It’s essential to understand the fee structure before engaging DIA’s services.

Due Diligence

Before working with any financial advisor, including Denver Investment Advisors LLC, it’s crucial to conduct thorough due diligence. This includes:

• Checking their background: Verify their registration and disciplinary history through the SEC’s Investment Adviser Public Disclosure (IAPD) website.
• Reviewing their Form ADV: This document provides detailed information about the firm’s business practices, fees, and potential conflicts of interest.
• Meeting with the advisor: Schedule a consultation to discuss your financial goals and needs, and to assess whether the advisor is a good fit for you.
• Asking questions: Don’t hesitate to ask questions about their investment philosophy, fee structure, and experience.

By understanding DIA’s core principles, services, and fee structure, and by conducting proper due diligence, individuals can make informed decisions about whether they are the right financial advisor for their needs.