Frequently Asked Questions

Our comprehensive approach to financial planning and wealth management is most appreciated by higher net worth individuals or professionals dealing with complex financial issues. Working with these types of clients enables us to foster a personal, high-quality relationship with each person.

Have you noticed an increase in the number of calls from prospective clients due to the recent market volatility and economic uncertainty?

Yes. The most affluent investors have always viewed the wealth manager as indispensable to reaching their financial goals. Due to an increase in market volatility and economic uncertainty, many previously self-directed investors have begun to question their expertise. In addition to investment management services and solid investment products, they are interested in other services such as asset allocation, financial planning, tax planning and estate planning.

Nearly all of our services are on a fee basis. We have the ability to provide financial planning services for a flat fee. For example, we provide a College Planning Solutions (CPS) Consultation and a Retirement Income Analysis for a flat fee.

Our typical advisory fee for our wealth management services is a percentage of assets under management. We believe a fee-based approach aligns our interests with that of our clients and enables us to focus on the long-term needs of our clients in a consultative manner.

Yes. Many people contact us about the possibility of receiving a Retirement Income Analysis even if they are unable to come in for an office meeting. Please contact us with information about your situation and we will be in touch with you. To get the process started, we will send you (fax or email) a Retirement Income Worksheet for you to complete. We are available to discuss the results of the Retirement Income Analysis with you (in our office or over the telephone).

I understand there is a flat-fee for the Retirement Income Analysis, but what exactly will I receive?

The Retirement Income Analysis includes two in-office meetings. During the initial consultation, we will discuss the Retirement Income Worksheet and your specific retirement income goal and other objectives. After the initial meeting, we will use this information about your current retirement investments to design an investment strategy with a mix of investments that will provide the highest probability of meeting your goal of lifelong income and security in retirement.

Our fee for professional services includes the time and expertise of your CFP^® practitioner. In our firm, we use several sophisticated computer programs that enable us to present information to you about:

1. Potential outcomes.
2. How much more you should save.
3. When you can retire.
4. Required assets at retirement.
5. How much you can spend.
6. Your potential income after retirement.
7. The optimum asset allocation and various distribution strategies.

Your advisor will typically spend several hours working on the Retirement Income Analysis for you and the results of the analysis (including a printed copy of up to 17 pages) will provide you with information about the optimal mix of investments that will provide the highest probability of meeting your goal of lifelong income and security in retirement and the optimal distribution strategy for you based on your specific retirement income goal and other objectives.

Of course, we can also provide investment management services at a later time if that is something you are interested in also. We offer one of the most comprehensive fee-based investment management programs in the industry.

Our investment management process incorporates the element of fiduciary conduct. We adhere to the following:

Uniform Code of Fiduciary Conduct

1. Prepare written investment policies and document the process used to derive investment decisions.
2. Diversify portfolio assets with regard to the specific risk/return objectives of participants/beneficiaries.
3. Use professional money managers ("prudent experts") to make investment decisions.
4. Control and account for all investment expenses.
5. Monitor the activities of all money managers and service providers.
6. Avoid conflicts of interest.

What is the difference between an Investment Advisor and other financial advisors?

As an Investment Advisor, we provide our clients with:

1. A Fiduciary Standard of Care - A fiduciary is a person responsible for managing the assets of another person and stands in a special relationship of trust, confidence, and/or legal responsibility. Investment Advisors have a fiduciary duty to their clients, which means they must put their client’s interests ahead of their own. He or she must recommend the best investment for the client. The compensation of an advisor cannot be dependent upon which products or assets a client ends up investing in.
2. Suggested Industry Best Practices - Investment Advisors must be confident that the critical components of a client’s investment strategy are being properly implemented. The investment strategy depends on factors such as client’s investment goals, their time horizon, liquidity needs, risk tolerance, investable resources and their income needs.

Let’s say we have a 65-year-old man (and a 25 year time horizon) with $1 million in retirement investments. He would like to take out $60,000 per year from his retirement portfolio. He is retired so this is a distribution portfolio (no more money going in).

The results of our comprehensive Retirement Income Analysis would show us that although he has sufficient savings for retirement, it is very likely that he will run out of money. We would have to implement a strategy that would protect his retirement investments from market volatility, another bear market, etc. and also provide a lifelong income stream. We would manage the overall investment strategy by:

1. Deciding on the Asset Allocation Approach (Strategic, Tactical Constrained, Tactical Unconstrained, Absolute Return).
2. Defining the details of the Investment Strategy.
3. Implementing the strategy with appropriate Portfolio Strategists and Investment Managers.
4. Monitoring the strategy on an ongoing basis.

We would provide comprehensive and continuous investment advice to ensure that the critical components of the investment strategy are being properly implemented. This differs from those who are product driven, with more of an interest in selling financial products.

What would you do to protect my retirement investments from market volatility, another bear market or recession?

If you are in the distribution phase (as illustrated in the previous example), we know that increasing the equity allocation in your portfolio would very likely reduce the portfolio life. Higher equity means higher volatility. Higher volatility means greater fluctuations in the value of the account. Greater fluctuations in a distribution portfolio can cause permanent losses and reduce the portfolio life by up to 50% or more. We would reduce the equity allocation and depending on other factors, we might place some of your money in alternative investments and tax-deferred vehicles that will protect your money from market downturns.

If you have abundant savings or if you are not taking money out of your portfolio (maybe an Accumulation Portfolio), then we would manage the overall investment strategy differently. As for performance, you can achieve a higher return with a higher equity/maximum growth portfolio. The Asset Allocation Approach best suited for you would depend on your investment goals, your time horizon, liquidity needs, risk tolerance, investable resources and your income needs.

Can I view my accounts on the Internet?

Yes. You will receive a User Name and Password to access our wealth management system which provides 24 hour access to all of your financial information and accounts.

Many parents are worried about the cost of college and how the tough economic climate may make it more difficult for them to pay for the college education of their children.

We have been very fortunate over the years to help our clients make their child’s college education more affordable.

Today, we are experiencing more calls from prospective clients and parents of college-bound high school students who have seen their retirement plans and their college funds disrupted by the recession.

There are so many families looking for immediate help, but there is only a limited amount of time available to help them. For those who have a genuine interest in making their child’s college education more affordable - sooner rather than later – we will show them how to keep the American Dream alive. There are many possible steps that parents can take to reduce the cost of college, even if their child is a junior or senior in high school.

The objective of our College Consultation is to show parents, through a variety of investment, income, asset, tax and funding strategies, how to develop an optimized plan to prepare and pay for college in the most effective and efficient manner and do it without depleting their retirement savings and without incurring excessive debt.