Operating out of West Chester, Pennsylvania, Key Financial, Inc. has a variety of compensation arrangements, but it mainly uses a fee-based fee structure. Key Financial’s clients who do not have a high net worth outnumber those who do roughly 2 to 1. The firm currently has 12 advisors, all of whic are representatives of broker-dealers and 10 licensed insurance agents.
Key Financial Background
Key Financial has been in business since 1997. Founder Patricia Clark Brennan serves as president, CEO and chief compliance officer.
The firm’s team consists of four certified financial planners (CFPs), one chartered financial analyst (CFA), one certified fund specialist (CFS), one accredited wealth management advisor (AWMA), one accredited asset management specialist (AAMS), one chartered retirement planning counselor (CRPC) and one certificate in investment performance (CIPM) designation holder.
Key Financial Client Types and Minimum Account Sizes
Key Financial serves individuals and high-net-worth individuals, pension plans, profit-sharing plans, state and municipal government entities, trusts, estates, charitable organizations, corporations and other business entities.
The firm doesn’t impose a minimum account size requirement over all of its services. However, there may be a minimum account requirement for specific services the client receives, such as a minimum account size of $250,000 being required for Grandfathered Converted RAS Accounts.
Services Offered by Key Financial
Key Financial’s clients have access to an array of advisory services. These include:
- Portfolio management
- Financial planning
- Cash flow planning
- Income tax planning
- Asset allocation and diversification
- College education and funding alternatives
- Retirement planning
- Asset protection
- Estate planning
- Charitable giving
- Family planning
- Educational seminars
Key Financial Investment Philosophy
Key Financial will customize asset allocations to clients' goals and profiles, typically constructing portfolios with stocks, mutual funds and exchange-traded funds (ETFs). In evaluating investments, it relies on fundamental analysis. Its strategies include long- and short-term purchases, trading, margin transactions and option writing.
Fees Under Key Financial
Key Financial is generally compensated for its investment advisory services through asset-based fees, fixed fees and commissions. For initial financial planning, the firm charges a flat fee that is agreed upon between the advisor and client. When it comes to financial planning and portfolio monitoring, the firm uses Royal Alliance/Pershing (RAS) and RTD Financial Advisors, Inc. (RTD). Both RAS and RTD charge quarterly and annual asset monitoring and planning fees that generally range from 0.125% (quarterly) to 1.75% (annually).
Clients may incur other fees and charges that are exclusive of Key Financial’s fees. These include deferred sales charges, custodial fees, odd-lot differentials, wire transfer and electronic fund fees, taxes on certain transactions and mutual fund and ETF internal management fees.
Key Financial Awards and Recognition
Several news outlets have recognized Patricia Brennan as one of the top financial advisors in the financial services industry. Most recently, Forbes, Barron’s, The Financial Times and Fortune magazine have all featured Brennan in their top advisor lists.
What to Watch Out For
Affiliated professionals may receive commissions for insurance or investment-related products that they recommend. This may create a potential conflict of interest. That said, as an investment advisor registered with the Securities and Exchange Commission (SEC), the firm is bound by the fiduciary duty to put clients' interests before its own.
In its most recent filings with the SEC, there were no disclosures but in the past, the firm reported one regulatory action. It involved failing to submit the investment advisor renewal form in time, for which Key Financial paid a $3,000 fine.
How to Open an Account at Key Financial
To open an account with Key Financial, fill out your information here.
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All information was accurate as of the writing of this article.
