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1. Please tell me about the financial advisory process.
Financial planning is a multi-step process that provides you with two important things: (1) A review of your current financial situation, and (2) a blueprint that shows you how to achieve your goals and objectives for the future. At Wealth Planning & Management, LLC and our related company, Financial Planning & Education, LLC , the financial planning process consists of seven distinct steps (see Seven Steps for details on our unique financial planning process). It is important to remember that financial planning is a process . . . not a one time event. The only constant is change.
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2. How do you create this blueprint?
First, we 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 a new strategy, professional insight, or to fine-tune your plan. 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.
Finally, to achieve the intended results, your plan must be implemented and monitored. We assist clients with this as well.
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3. 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 Wealth Planning & Management, LLC , we try to make the process as easy as possible for you. In addition to receiving professional advice on your most important financial concerns, we also provide implementation and ongoing investment consulting services. We are required by law to "know our clients", and we find that we do the best job for them when clients share with us their hopes and dreams. We provide several tools for you to think through your objectives and plan your life. Click here for tools.
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4. Who can benefit most from your services? Our ideal client is a nice person who makes saving and investing a priority, and wants a continuing relationship with a Fee Only advisor that will help them (and their attorney, accountant or other advisors) with their entire financial life. While we are able to add new clients at this time, we can't be all things to all people. For instance, we cannot magically convince someone to stop overspending, and we aren't debt reduction specialists.
As you know, we are your fidcuiary, a Vancouver WA Fee Only Financial Planner.
In addition to individuals, any corporation or organization seeking quality, unbiased financial education for their employees or members can benefit from our financial education programs.
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5.What is ''Fee-Only'' financial planning and why should that be important to me?
Whoever you choose to work with, your first question should be "Are you a Fiduciary for my interests, or do you have an obligation to your employer first?" Many brokers and insurance agents are NOT fiduciaries.
Because we are fiduciaries and are Fee-Only financial planners, all conflicts of interest regarding compensation are removed. You know exactly how much you pay us. We do not accept sales commissions; we work solely for our clients. Because we do not sell financial products such as investments and insurance, there are no third-party relationships or outside influences to color our thinking and financial recommendations. ( We do make recommendations about these products, it's just that we are neutral.)
In addition, our firm is a Registered Investment Advisor (RIA); as such, we 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. We would be happy to send you a copy of our ADV Part II. Please contact us to request your copy.
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6. 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?
No problem, we provide implementation for our clients. While we do not represent sellers of financial products, we will offer specific recommendations and opinions regarding the purchase of products you may need - but with no sales pressure. So, if you need to obtain an insurance policy or a new mortgage, invest into a portfolio of mutual funds, or find an estate planning attorney or tax professional, we can direct you to the resources you need and/or help you obtain these products and services. You can obtain products through your current providers, such as your property insurance company. We can also help you implement your plan and set up your accounts and manage your accounts with institutional investments available only through Fee Only Advisers, such as DFA Funds. While we are NOT bankers, insurance agents or stock brokers, we do understand these businesses well, having worked in them in the past. Unlike these businesses, we don't have sales managers with quotas, or herds of gossiping co-workers. You work directly with our owners, and your privacy is ensured.
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7. Does Wealth Planning & Management, LLC provide only complicated multi part financial plans?
No. We can limit our advisory services to your specific needs, such as investment supervision.. Keep in mind however, that it does require time for us to analyze your situation. There is no "free lunch", and we can't answer questions without fulfilling our obligation to review your completed Confidential Questionnaire.
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8. 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?Possibly, if you will fufill the necessary requirements. At Wealth Planning &Management and Financial Planning & Education, LLC , we realize that everyone has financial needs. We offer a two hour working meeting to new clients, and generally a new client engagement requires at least two meetings. With years of experience, we do not seek the market position of the 'lowest cost' financial advisor in town. We work with clients who know that the highest quality professional advice is not the lowest cost, not in any profession.
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9. 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. Most of our clients need sophisticated financial planning and advice. If you have a desire to simplify your financial affairs, our Ongoing Client Program may be right for you. We can take away the hassle, and you can call upon us anytime you need us. More than 90 % of our clients work with us on an ongoing basis.
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10. 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. Our financial planning team 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, and work with other Fee Only planners to deliver education to your employees throughout the USA.
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11. What types of securities do you provide advice for?We provide advice for all types of securities, including mutual funds, stocks (as they relate to your portfolio holdings), bonds, bank deposits, variable and fixed annuities. 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 likely provide counseling, guidance and/or resources for you. Clients are 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.
We also 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?'', ''What advice can you offer on refinancing my home?''
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12. If I use Wealth Planning & Management, LLC or Financial Planning & Education, LLC to develop a financial plan, am I obligated to purchase the recommended products?
We will offer recommendations which in our 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, we will suggest the kind of policy, which riders and what amounts may be best for you. We will then direct you to a choice of companies that can provide a quality product at competitive prices for you. We do NOT sell insurance, or receive any referral fees from any insurer or mutual fund company.
We help you purchase investments by setting up your accounts with a third-party custodian such as a discount broker. We also offer access to Institutional quality mutual funds such as Dimensional Fund Advisors (DFA) funds, for clients who have WP& M oversee their accounts for a fee.
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13. Tell me about your investment philosophy.
As financial planners and investment consultants, we believe in the following fundamental principles 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 difference of opinion that makes a market, with one person selling what the other wishes to buy. Investment and economic ''experts'' provided with the same information often come to different conclusions. We do not suggest that we will, or that any of the money or mutual fund managers that we recommend, will make the correct decision every time. History tells us that the stock market declines approximately 3 years out of ten. This is a normal part of capitalism. Clearly, the stock market has risen over all periods exceeding 15 years.
We do believe that reviewing the academic research re 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. We 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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14. How do you select investments for a client?
Before we recommend any investment, we consider the current economic conditions, the long term 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, we focus primarily on the philosophies, asset class, experience, expense ratios and track record of the management team. With fixed income investments, we look for the best yield available for a given quality of security. As fiduciaries for our clients, we strive to obtain the most appropriate investment vehicles to meet your objectives, while being very conscious of total expenses and risk exposure. We never try to time the market, as noted in the answer to question 13 above. We do believe that "Ownership investments (stocks) outperform fixed income over the long run". We encourage clients to invest accordingly.
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15. How do you price your financial planning services?
Clients choose to have us supervise their accounts, and there is a s fee schedule for this service. The initial financial planning fee varies depending on the client's situation. Pricing is negotiable at advisor's sole discretion.
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16. 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 (please see our diagram Seven Steps to learn about our financial planning sequence and the client service options available). An estimate is provided before work begins, when your personal needs are fully identified. If we have never worked with you before, we do offer a two hour working meeting, in which you will get some of the answers that day, for an initial charge of $420. Most clients choose to engage us beyond this initial meeting, and we provide a pre-agreed cost estimate.
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17. 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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18. Once my financial plan is completed, then what?
The majority of our clients choose to return on a Continuing Consulting Program. Because financial planning is a process, not an event, we offer ongoing services, periodic reviews and day-to-day consultation for Continuing Clients is as requested and/or needed.
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19. How can I get started?
The first step is an initial inquiry from You. Clients may call us at (360) 566 2095 in the Vancouver WA / Portland Oregon area or at 206-219-5604 in the Seattle area, or email us by clicking here: Contact Us We offer an initial no-cost, no-obligation telephonic Get Acquainted Meeting. When you decide to engage our services, we can schedule a meeting.
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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Find out more about our 7 Step process here. |