Frequently Asked Questions & Answers
* Fee – Fee for the engagement. This could be a flat fee or an hourly fee.
* Fee arrangement – Management fee based upon your assets.
* Commission – if there were a particular product that fit your situation, we would be able to implement a product where the product company compensates us.
* Hybrid – Combination approach
Each implementation strategy has its benefits and its draw backs. The key catalyst for making a decision is based on your situation.
* Some people seek financial planning when a material life changing event has occurred or is expected to occur. Such events could be: Marriage, retirement, college planning, a death in the family, divorce, or the birth or adoption of a child.
* Sometimes, people need financial planning guidance when they are evaluating the financial merits of changing jobs, buying or selling a business, or purchasing a new home.
* Financial Planning can be extended to business owners as they seek to evaluate their current or prospective retirement plans, executive compensation, succession planning, or employee education.
* Others choose to create a retainer arrangement to have various financial planning services for their situation on an ongoing basis.
Financial Professional: A registered representative is an independent business owner who provides financial guidance to their clients and is typically paid a commission when you purchase a financial product. An Investment Advisor Representative (IAR) is an independent business owner who provides financial guidance to their clients and is generally paid a fee for either managing assets, giving advice, or both.
Investment Firm: A broker-dealer processes the commission business of registered representatives licensed with the firm and holds responsibility for regulatory compliance and adherence to securities laws. A Registered Investment Adviser (RIA) processes the fee-based business of IARs licensed with the firm and holds responsibility for regulatory compliance and adherence to securities laws.
Custodian: Pershing LLC, National Financial Services, LLC, and select firms provide the trade execution, clearing, custody, and other services for securities and related transactions.
Your Investments: Mutual funds, managed accounts, stocks, bonds, etc.