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1. Please
tell me about the financial planning process. Financial planning
can be either comprehensive, focusing on most or all of the major
components of your financial matters such as investments, retirement,
taxes, insurance, etc., or it can be very specific, focusing on only one
or two issues of key importance to you. In either case, financial
planning is a multi-step process that provides you with two important
outcomes: (1) An in-depth review of your current financial situation,
and (2) a blueprint that shows you how to achieve your goals and
objectives for the future. It is always important to remember that
financial planning is a process . . . not an event. Like most things
worth doing in life, you have to stay at it to achieve the results you
desire!
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2. Who can
benefit most from your services? Any individual or family seeking
financial peace of mind can benefit from our services. We serve people
at all income levels, from all walks of life. We do not require that
clients have a minimum net worth, or income level. We welcome clients
who simply need a one-time financial consultation or a second opinion,
as well as those who are seeking ongoing coaching and monitoring over a
longer period of time. In addition, any corporation or organization
seeking quality, unbiased financial education for their employees can
benefit from our financial education programs.
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3.
What is ''Fee-Only'' financial planning and why should it be important
to me? True Fee-Only financial planners are paid by their clients
and only by their clients. They don't sell financial products of any
kind, nor do they receive commissions or hidden fees. Financial
Solutions is a true Fee-Only financial planning practice. This is
important, because when you work with us, the possibility of a conflict
of interest regarding compensation does not exist. We will advise you
on financial products such as investments and insurance, but we do not
sell them or receive any benefit from their sale. This allows us to
seek out the best alternatives for you without third-party relationships
or outside influences to color our thinking or recommendations. We think
that when choosing a financial planner, you should always ask and fully
understand how they are compensated. We invite you to ask us for this
information at any time. For more information about Fee-Only financial
planning, please visit
www.NAPFA.org.
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4. Does
Financial Solutions LLC provide only comprehensive financial planning?
No. Although a comprehensive financial plan can often provide the
greatest benefit for you, our unique service model gives us the
flexibility to tailor our advisory services to your specific needs, such
as retirement planning, cash management and budgeting, portfolio review,
etc.
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5. I
understand the benefits of working with a Fee-Only financial planner,
but I might need to obtain financial products. How will I be able to do
that? While we don't sell financial products, we offer specific
recommendations and opinions regarding their purchase if they are
appropriate for you. We can assist you with implementing these
recommendations, or we can direct you to the appropriate contacts so you
can implement them on your own. We are flexible enough to provide as
much or as little help as you would like.
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6. For what
types of investments and financial planning matters do you provide
advice? We provide advice for most types of investment securities
(as they relate to your portfolio holdings), including mutual funds,
stocks, bonds, bank deposits, variable and fixed annuities, limited
partnerships, tax shelters, etc.
We provide
advice and education on retirement planning, budgeting and cash flow
issues, 401(k)'s, 403(b)'s and other retirement programs, rollovers,
stock options, life and disability insurance, mortgages and more. If it
has to do with money and finances, we can usually provide counseling, guidance
and/or resources for you.
Clients are
also encouraged to call us when they have a major life event, such as a
new job, a baby, a marriage or divorce, or if they are planning to buy a
new home or start their own business. And we encourage our clients to
call us with more common everyday questions, such as: ''How should I
invest within my 401(k) or 403(b) plan?'', ''How can I reduce my
taxes?'', ''Am I saving enough?'', or
''Should I pay down my debt?''
Finally, we
can also provide important financial education for those just starting
out or trying to get "up to speed" on their finances.
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7. If I
use Financial Solutions LLC to develop a financial plan, am I obligated
to purchase the recommended products?
Absolutely not. We will offer recommendations that we believe will, in
our professional opinion, meet your needs and objectives, but you are
under no obligation to purchase them. In today's competitive market, it
makes sense to shop around for the best available product or service.
For instance, if you need to obtain a life insurance or disability
policy - we may suggest the type of policy, and which riders, and what amounts
may be best for you. We will then direct you to one or more companies
that can provide a quality product at competitive prices. And, of course, we can also help you with implementation if you would like us to.
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8. What is your investment
philosophy?
We believe in the following fundamental principals when designing asset
allocations and/or investment portfolios or for our clients:
- We believe
that the allocation of investment assets (i.e. among stocks, bonds and
cash) is the most important component in developing a client's
investment portfolio. The design of the portfolio should take into
account a client's financial objectives, tolerance and capacity for
risk, needs for current income or liquidity, and any other
considerations unique to the client. Perhaps most importantly, the
asset allocation should be such that the client should be able to "sleep
at night" regardless of what happens with short term market
fluctuations.
- We believe
in investing for the long term. Studies show that stock market
investing becomes less risky as the investment time horizon increases.
Generally, long-term means at least five years and preferably much
longer. We do not believe in market timing.
- We believe
that a diversified and well-balanced portfolio of low-cost, tax
efficient investments will serve our clients best. We typically
recommend no-load index funds and/or Exchange Traded Funds to help clients achieve their investment
objectives.
- And we
believe that investing does not have to be rocket science to be
effective. Our straight-forward approach to financial planning and
financial education is reflected in our approach to investments and in
our recommendations. Except in unusual situations, simpler is
usually better.
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9. Do you
offer educational programs for companies who want to educate their
employees about 401(k)'s, investing and other benefit-related issues?
Yes. We can custom-build an educational program for your company to
help your employees understand why they'll be better off if they
participate in your benefit programs.
We can also
educate them on investing basics and other financial matters so they can
make well-informed decisions both inside and outside of their company
plans. Your employees will appreciate the fact that you have engaged an
independent, fee-only firm, eliminating the possibility of product
sales, promotions, or biased advice. Please call us to discuss your
company's specific educational needs.
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10. How do
you price your financial planning services? Our fees are based on
the time that we spend meeting with you, either in person or over the phone,
researching and analyzing your financial situation, and providing you
with specific recommendations. Before you hire us, we will always
tell you the full cost of the
engagement. All fees are fully disclosed. ...no secrets; no surprises.
We offer three types of planning engagements:
Financial
Fitness Checkups: Our most popular service, this is a two- to three-hour interactive financial planning session where we
analyze and provide specific guidance on issues of most importance to
you such as investments, retirement savings, taxes, education savings,
debt management, etc. The fee for the Financial Fitness Checkup typically ranges from $900 to $1,700, depending on the complexity of your situation. The fee amount is based on our estimate of the time it will take to prepare our analysis, plus the time that we'll spend together in the Checkup meeting. As always, we'll tell you the exact fee before you decide to go forward. We offer a special rate for young savers under age 35.
Hourly
Engagements: Hourly Engagements are most frequently for reviews that don't fit within the
framework of the Financial Fitness Checkup because they are either too
complex, or they are very specific in nature. As you'd expect, the fee for
Hourly Engagements depends on the nature and complexity of the
engagement. Our hourly rate is $200/hour.
Retainer Engagements:
These are ongoing relationships that last twelve months or less, depending on your needs. At the end of the term, you can decide if it makes sense to renew for another. Retainers typically begin with a Financial
Fitness Checkup to get you started on your financial plan. Then you'll
receive ongoing guidance and support to help you implement your plan and keep it on track. The fee for Retainer Engagements depends on
the term and complexity of the engagement. It is a fixed amount
determined before the engagement begins, and billed on a quarterly
basis.
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11. How
much will my financial plan cost? (Please see our response to the
previous question for a detailed response). The fee for a financial plan or
consultation will vary based on the specific needs and complexity of
your situation. We will always tell you the full fee amount before work
begins. Remember, since we are Fee-Only planners, ALL charges are fully
disclosed to you. If you decide to engage us, we will ask you to sign a
short contract documenting our agreement to go forward and the
responsibilities of each party.
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12. Once my
financial plan is completed, will our relationship end? That's up
to you! Most of our clients return for periodic checkups to ensure that
once they get their plan on track, they keep it on track. We also
recommend periodic portfolio rebalancing to ensure that your asset
allocation remains on target. And of course our Retainer clients have
an ongoing relationship with us.
Remember that
financial planning is a process, not an event. Once you get
started, if you stay with it, you will reap many long term benefits.
For this reason, we always encourage clients to return for periodic
reviews and updates.
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13. How can I get started?
The first step is up to you! Call us at (614) 604-3551 or
contact us via our Contacts Page to schedule a
meeting. We offer a no-cost, no-obligation "Get Acquainted" meeting,
either on the phone or in our offices. These meetings are scheduled
based on availability during regular business hours of 8-5, Monday
through Friday. Expanded office hours are available to accommodate
special needs and long-distance clients.
THE KEY IS.
DON'T PROCRASTINATE!! Most clients find the financial planning
process stimulating and enlightening once they get started. And the end
result, of course, is greater peace of mind.
We look
forward to helping YOU build a brighter financial future!
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