- Please
tell me about the financial planning
process.
Financial planning is a multi-step process
that provides you with two important things:
(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. At ColeFP, the financial planning
process consists of seven distinct steps
(see Building a
Brighter Financial Future)
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- How
do you create this blueprint?
First I focus on your goals, objectives,
priorities and values. For instance: the
reduction of current and future income taxes
may be an immediate goal, funding a quality
education for your children and/or
grandchildren may be an intermediate goal,
and enjoying a secure financial future in
your retirement years is likely to be one of
your most important long-term goals. Another
great goal in life for some people is
creating wealth and/or leaving a legacy for
your chosen beneficiaries or charities. You
may already be on the road to meeting these
objectives and simply need some professional insight to fine-tune your
plan or you may need a whole new strategy. You may just be starting out, or you
may be somewhere in between. Whatever your
unique situation may be, everyone needs a
periodic assessment of where they are on the
road to meeting their financial goals.
That’s why I do an in-depth review of your
current financial situation. Next, you need
to know how you can set about achieving (or
continue working toward) your financial
goals. By focusing on cash flow,
investments, taxes, pensions and retirement
plans, estate planning, insurance issues,
savings opportunities and other general
financial matters, ColeFP will design a customized
financial plan for you. Finally, to achieve
the intended results, you will need to implement and
monitor your plan, ColeFP can assist you
there as well.
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- Sounds like a lot of work!
It may seem like that at first, but the good
news is, if you follow your plan and
maintain a disciplined approach, you can
rest well knowing you can reach your stated
goals. At ColeFP tries to
make the process as easy as possible for
you. In addition to receiving professional
advice on your most important financial
concerns, I offer ongoing relationship
providing investments with institutional
class mutual funds.
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- Who
can benefit most from your services?
Any individual seeking financial peace of
mind can benefit from ColeFP services. I serve
people at all income levels, from all walks
of life. Clients have the flexibility to
work with ColeFP on either a one-time, as-needed
basis or on an ongoing basis. I welcome
clients who simply need a one-time financial
consultation or a second opinion, as well as
those who need comprehensive financial
planning. In addition, any
corporation or organization seeking quality,
unbiased financial education for their
employees or members can benefit from ColeFP
financial education programs
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- What
is ''Fee-Only'' financial planning and why
should that be important to me?
Because I am a Fee-Only financial planner,
all conflicts of interest regarding
compensation are removed. ColeFP does not
accept sales commissions; I work solely for
my clients. Because I do not sell financial
products such as investments and insurance,
there are no third-party relationships or
outside influences to color my thinking and
financial recommendations. ColeFP subscribes to the Code of
Ethics, Fiduciary Code of the National
Association of Personal Financial Advisors,
for more information please visit
www.NAPFA.org.
In addition,
ColeFP is a Registered
Investment Advisor (RIA; as such, the firm
must comply with a host of regulations
designed to protect the consumer. One
important question you should always ask
when considering a financial planner’s
services: ''May I please have a copy of your
ADV Part II?'' This document contains
important information about the planner’s
qualifications, fiduciary duties, history of
any past violations, etc. I will be happy
to send you a copy of ColeFP ADV Part II.
Please
contact us to request your copy.
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-
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 I do not sell financial products,
ColeFP will offer specific recommendations
and opinions regarding the purchase of the
various financial products that may be
appropriate for you. So, if you need to
obtain an insurance policy or a new
mortgage, or find an estate planning attorney
or tax professional, ColeFP can direct you to
the resources you need and/or help you
obtain these products and services.
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- Does Cole Financial Planning provide only
coordinated financial planning?
No. Although a coordinated financial plan
can provide the greatest benefit, we can
limit our advisory services to your specific
needs, such as cash management and
budgeting, investment analysis or college
education funding.
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-
My
spouse and I are just beginning to build for
our financial future. There is so much to
learn! We need help and guidance to get
started. Will you accept us as clients?
Yes. Some firms have income levels and/or
net worth minimums but, ColeFP realizes that everyone has
financial needs. I am proud to work with
people from all income levels, and all walks
of life. Remember, ''You don't have to have
a fortune to start building one.'' As Plato
once said, "The beginning is the most
important part of the work."
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- I
have already accumulated substantial assets
and think I am doing quite well. But as I
progress and build for the future, things
seem to be getting more complicated. I want
to be sure I am on track, but I don’t always
have the time or inclination to manage the
myriad details by myself. Can you help me?
Yes. People who need more sophisticated
financial planning or advice will find
ColeFP
services appealing and beneficial. If you
have a desire to simplify your financial
affairs, we can look into establishing an Ongoing Retainer Client Program
which
may be right for you (see
Building a Brighter Financial
Future.) If you
are looking for a professional review or a
second opinion to ensure you are on track,
I can provide that, too.
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- I’m
in charge of the retirement plans and
employee benefits at my firm. I would like
to increase the number of employees who
participate in our benefit programs. How can
you help us?
Corporate education is key in building
employee participation. ColeFP can help your people
understand the benefits of your programs.
Please call to discuss your specific needs.
We can custom-build an educational program
for your company.
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-
What types of securities do you provide
advice for?
ColeFP
provides advice for all types of securities,
including mutual funds, stocks (as they
relate to your portfolio holdings), bonds,
bank deposits, variable and fixed annuities,
limited partnerships and tax shelters. We
also provide advice on mortgages, budgeting
and cash flow issues, 401(k), 403(b) and
other retirement programs, stock options,
life and disability insurance, etc. If it
has to do with money and finances, we can
provide counseling, guidance and/or
resources for you. Because I want our
clients to know that they can call on ColeFP
with any and all of their financial
concerns, I have adopted the slogan
''Financial Planning and Advice for Everyday
Life.'' Clients are encouraged to call
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. ColeFP encourages
its clients to call 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?'', ''What
advice can you offer on refinancing my
home?'', or ''How can I maximize my Flex
Spending Account, Cafeteria Plan or Section
125 Plan at work?''
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-
If
I use Cole Financial Planning to develop a
financial plan, am I obligated to purchase
the recommended products?
Absolutely not. I will offer
recommendations which in my professional
opinion will 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, I will suggest the kind
of policy, which riders and what amounts may
be best for you. I will then direct you to
a choice of companies that can provide a
quality product at competitive prices for
you. Ongoing clients receive access to
institutional class mutual funds for the
investment needs.
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-
Tell me about your investment philosophy.
As a financial planner and investment
consultant, I believe in the following
fundamental principals with regard to
designing an investment portfolio and making
specific recommendations: The purpose of a
client’s investment portfolio is to fund
current and/or future financial objectives.
The design of the portfolio must take into
account the client’s financial objectives,
tolerance for risk, needs for current income
or liquidity, and special considerations
such as income and estate taxes. The
important thing to remember is that no
one can predict the future. It is
a difference of opinion that makes a market.
Investment and economic ''experts'' provided
with the same information often come to
different conclusions. I do not suggest
that I can, or that any of the money or
mutual fund managers that I recommend, will
make the correct decision every time. I do
believe, however, that studying the historic
trends and relationships of investment
classes and the philosophies and approaches
of successful investment managers can
provide valuable insight. The appropriate
allocation of investment assets for your
goals and risk tolerance is the most
important component in developing an
investment portfolio. I believe that having
a diversified, well-balanced portfolio,
following long-term buy-and-hold strategies,
and having patience, will increase the
likelihood that one will achieve their
long-term financial objectives.
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- How
do you select investments for a client?
Before ColeFP recommends any investment, I
consider the current economic conditions,
the outlook for that asset class or type of
security and how this investment fits within
your portfolio given your objectives and
tolerance for risk. For equity investments,
I focus primarily on the philosophies,
experience and track record of the
management team. With fixed income
investments, I look for the best yield
available for a given quality of security.
As a fiduciary for my clients, I strive to
obtain the most appropriate investment
vehicles to meet your objectives, while
being very conscious of total expenses and
risk exposure.
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- How
do you price your financial planning
services?
The
fees are based on the actual time involved
in meeting with you in person or over the
phone, researching and analyzing your
current situation, and providing specific
recommendations and implementation
assistance (if appropriate). Hourly rates
are $150 per hour for services rendered.
Typical engagements range from 8 to 20
hours.
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- How
much will my financial plan cost?
Financial
planning fees are determined on a
project basis; the total fee for a
financial plan will vary from client to
client based on the specific needs and
complexity of your situation.
But since you are probably wanting
something more specific, we have found
that average plans usually take between 8 and
20 hours of work. Based on our $150/hr
fee, typical plans usually fall between
$1,200 and $3,000. After the plan in
written, many clients want, need or
desire an ongoing relationship
with investment management services.
These services are
priced based on the assets under
management which determine the annual
retainer rate. Our current fee structure
for ongoing services is based on the
following schedule:1%
on the first $300,000
0.33% on the next $750,000
0.20 on everything over $1,000,000.00
EXAMPLE: A Client has
$475,000.00- The annual flat rate would
be $3577.50 ($300,000 * .01 + $175,000 *
.0033). The annual fee would be reset
each year according to the growth or
decline of the assets being supervised
and advised upon. So if the assets grow,
the fee will go up and if the assets
decline the fee will subsequently
decline. We never take commissions and
are committed to complete fee
transparency.
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- Are
your fees tax deductible?
Yes. Section 212 of the
Internal Revenue Code permits an itemized
deduction for tax and/or investment advice
in the miscellaneous section of Schedule A.
It is subject to a 2% floor of the adjusted
gross income on a personal tax return.
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- Once my financial plan is completed, will
our relationship end?
That depends. We provide ongoing
services for many of our clients.
Financial planning is a dynamic process that reflects the
changes that happen in life. It is our
belief that you will see the value of a
continued relationship with ColeFP, but
it is incumbent upon us to prove that
value. We think we will. If
however, you are a "do it yourself" kind
of person, you can take the plan and
implement, monitor, and review your
financial plan and investments
recommendations on your own. For
more information on the financial
planning process please refer to
Building a Brighter Financial Future.
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- How
can I get started?
The first step is an initial inquiry from
you. Call ColeFP at (205) 477-5118 or
email us at
contact@colefinancialplanning.com.
I offer an initial no-cost, no-obligation
Get Acquainted Meeting. We can meet either on the phone,
in my home office or a
meeting can be scheduled at another mutually
approved and convenient site. All meetings
and appointments are scheduled based
on availability and by appointment
only. Meetings are typically held
during the hours of 8-5, Monday through
Friday. Expanded hours may be available to
accommodate special needs or emergency
situations. Should you decide to engage the
services of ColeFP, I can discuss which of our
services and client tracks is appropriate
for you. Most clients find the financial
planning process to be stimulating and
enlightening. 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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