1. What is Personal Financial Planning? Financial planning provides an independent review and assessment of a client's current financial situation, as well as a roadmap for the achievement of future goals and objectives. It is a lifelong journey, not a one-time event. The process consists of the following stages:
- establishing the client-advisor relationship
- gathering client data and determining goals and expectations
- analyzing the client's current financial position
- developing and presenting the plan and recommendations
- implementing the plan and recommendations
- monitoring client progress
Back To Top 2. How Do You Create This Roadmap? Together, the client and advisor focus on goals, objectives, priorities and values. These typically encompass both financial and non-financial matters. Building adequate retirement capital, maximizing after-tax wealth transfers to future generations, and funding a charitable legacy are all examples of financial goals clients may have. Frequently clients are already well- positioned, but may need a fresh approach, professional insight, or an unbiased second-opinion to stay on track.
All new engagements begin with data gathering and a review of the client's current financial situation. Depending on the scope of the engagement, specific areas such as cash flow, investments, employee benefits, retirement planning, and insurance are then analyzed in order to design and present appropriate, customized recommendations. FBD's role is akin to that of an airplane pilot: to guide you to your ultimate destination as safely and smoothly as possible. Back To Top 3. Isn't Fee-Only Financial and Investment Planning Only for the Well-to-Do? Absolutely not. Independent, unbiased financial and investment advice benefits people of all means and walks of life. Those with modest portfolios and net worths often derive the greatest relative benefit from professional advisory services. If you are thinking, I can't afford to do this, usually you can't afford not to.
Traditionally, fee-only advisory services have been targeted to very high net worth individuals via a percentage of assets under management approach. It is FBD' mission to extend the tremendous benefits of the fee-only approach to a broader cross-section of clients. Back To Top 4. What Distinguishes Your Firm from Other Financial Advisors? First and foremost, FBD is a pure fee-only firm, meaning that all compensation is received directly from the client. Referral fees and commissions are not accepted, allowing FBD to avoid product bias and conflicts of interest. Furthermore, FBD is fully independent, with no ties whatsoever to brokerages, mutual funds, insurance companies, or other product sponsors. Counsel and services provided are grounded in objectivity and stewardship, and recommendations are based solely on what is best for the client.
Another distinguishing feature is the fiduciary nature of the FBD-client relationship. FBD firmly believes the financial advisor-client relationship requires the advisor to always work in the client's best interest, and FBD pledges to do so for every client.
Finally, FBD works with clients desiring only a one-time consultation or review, as well as those preferring an ongoing, comprehensive advisory relationship. While each client is encouraged to schedule periodic updates and consider a long-term advisory relationship, those preferring only an initial assessment, or infrequent reviews, are certainly welcomed. Back To Top 5. If You Don't Sell Products, How Will I Get What I Need? While FBD does not sell products, specific recommendations and suggestions for appropriate financial vehicles are provided. Wherever possible, no-load, cost-effective alternatives are utilized. If additional insurance or legal services are required, FBD can assist with locating reputable resources, and with implementation of any recommendations. Back To Top 6. How Do You Price Your Services? FBD' fees are very competitive with other fee-only firms (the average hourly rate nationwide exceeds $150, per Kiplingers' magazine). Moreover, the fee schedule provides truly exceptional value compared to the total costs (3-6% up-front sales charges, deferred and trailing commissions, 12b-1 fees, etc.) charged by commission-based brokers/advisors.
Fees for financial and investment planning should be viewed as a long-term investment, not a short-term expense expected to pay for itself right away. While this often occurs, it is not the intent of the planning process. For most folks, achievement of financial security is a marathon, not a sprint, and the cost of professional, unbiased advice should be viewed in that context. Simply stated, FBD fees should not be an issue. If you have any questions regarding fees, please contact FBD. Back To Top 7. Do You Pick Stocks, Like a Broker? FBD does offer recommendations on individual stocks or bonds as well as no-load mutual funds and the alternatives available to the client in his or her company-sponsored savings and retirement plans. The fiduciary philosophies, cost-effectiveness, tax-efficiency and historical performance of successful investment managers are key factors in determining specific recommendations. Back To Top 8. Please Describe Your Investment Philosophy and Approach. FBD' approach is to analyze client objectives, risk tolerance, need for income/liquidity, and other special considerations, to customize a portfolio framework that provides structure and discipline for the selection of individual investments. Time in the market is emphasized over timing the market. Enhanced and consistent long-term returns are sought, while managing overall portfolio volatility and risk. Periodic adjustments and rebalancing are advisable to keep the portfolio in line with target allocations, and/or to capitalize on short-term opportunities. Back To Top Disclosure All written content on this site is for information purposes only. Opinions expressed herein are solely those of Colleen M. Miller, President, Finance by Design, Inc. Material presented is believed to be from reliable sources and we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual advisor prior to implementation. Fee-only financial planning and investment advisory services are offered through Finance by Design, Inc., a registered investment advisory firm in the state of Colorado. The presence of this web site on the Internet shall in no direct or indirect way be construed or interpreted as a solicitation to sell or offer to sell investment advisory services to any residents of any state other than Colorado. We are legally empowered to provide investment advisory services only to residents of Colorado. |
