Frequently Asked Questions
1
Are you a fiduciary?
Yes. While a fiduciary relationship is technically defined as one where assets are being controlled or managed on someone's behalf, advice-only relationships as an investment advisor still operate with a fiduciary standard: your interest before all others.
2
Are you "fee-only"?
Yes. Advice-only planning is a subcategory of fee-only models. This means that the only money earned comes from planning fees directly, with no other commissions, percentages, or conflicts of interest.
3
Do you charge a percentage of my assets?
No. An "advice-only" or "planning only" practitioner relies on charging hourly or project fees only, at a flat rate that is not based on a percentage of assets or growth.
4
Do I have to let you control my investments?
No. The benefit of working with an advice-only planner is that you maintain control of your investments and keep them with any brokerage that you want to do business with. All the while, you have a dedicated planner with an "over-the-shoulder" view to give direct feedback and instructions based on your preferences, needs, and investment philosophy.
5
I've done a lot of my planning myself. Can you just take a quick look and tell me if I'm right?
CFP® practitioners commit to a level of professionalism, due care, and depth with all advice given. This requires a rigorous review of information and understanding of a client's goals and situation. Financial plans should be engineered, not reverse-engineered in order to make sure the plan is accurate and conforms with your needs. It is also necessary to apply the CFP Board of standards direct methods and process to ensure you have a plan that is complete and comprehensive.
6
Why is your project fee so expensive?
Percentage based fees charge directly from the investments, often semi-annually or quarterly. This often feels like it is less expensive, but a typical charge of 1% on 1 million of investments is $10,000 annually. This is also an ongoing fee. While an up front project fee seems expensive, it is a one time charge. Hourly fees afterwards are based on client needs and desires for help, not an ongoing requirement.
7
Can I just pay an hourly rate to answer a few questions instead of a whole plan?
Similar to question 5 above, it is my belief that this is a disservice to a client and a lack of due diligence. Simple questions can often be answered with a client's own research. True financial advice needs to take all components and goals into account before giving responses that would otherwise be changed from further information.
8
What does a financial plan look like?
A financial plan can be a lengthy document, a series of modules and summaries, a software output, or other methods. I pursue a collaborative method that is based on a software output that myself and the client have access to, that includes lots of notes and commentary. Supplemental summaries or action lists are often included based on a particular client need or decision.
9
I'm completely new to handling my finances. Where should I start?
Many of my clients come to me because of a sudden transition. Death, divorce, early retirement, or disability can be frightening. Many Americans come from a value system where we should be well informed and "in control" of our finances. This can lead to guilt or fear about making the "wrong moves." My methods are ideally suited for this type of client. I focus on decision making, behavioral finance, and education that empowers you, not making you more reliant on my advice.
10
I am data-oriented and have lots of questions. My last advisor didn't seem to like that. How can you work with me?
My practice model is ideally suited for this type of client. Because the focus is on the planning and decision making instead of managing a large portfolio, collaboration and education occur naturally. My practice is intentionally set up to be accessible, instead of pushing off client conversations for the sake of the investment management. Clients that want to examine portfolio data closely, see multiple specific scenarios, or use their own assumptions in projections are welcome.