What is fee-only financial advice? How does that differ from other financial advisor options?
Fee-only advice is advice which is paid for by the client rather than commissions from an outside party. PFS is a fee-only advisor, and we do not accept commissions of any kind. We embrace serving in a fiduciary relationship with our clients, which means doing what is in our client’s best interest. We do not get paid more if we recommend investment A versus investment B. We do not get paid more if we recommend that you purchase insurance. We do not get paid any less if we recommend you terminate some insurance you have.
What are the ethical standards to which financial advisors are held?
Financial advisors are held to one of two standards: the fiduciary standard or the suitability standard. The fiduciary standard, which we have always embraced, requires that we make recommendations which are in your best interest.
The suitability standard, which commission-based advisors are most often required to observe, requires that the investments being recommended to you must be suitable, but it does not mean you will pay the lowest commission. Some or all of a broker’s income may be dependent upon steering their clients to a limited slice of the thousands of financial products available. How do you know which of these two standards your advisor follows? Ask, and expect a plain and simple answer.
What is required to be a Certified Financial Planner™ professional (CFP®)?
CFP® professionals are licensed by the Certified Financial Planner Board of Standards. They must pass a 10-hour comprehensive examination covering insurance, tax strategies, retirement planning, estate planning, and investments. They must also have at least three years of full-time financial planning-related experience. To maintain the designation, CFP® professionals must complete 30 hours of continuing education every two years.
Most people think all financial planners are "certified," but this isn't true. Anyone can call himself a "financial planner." Only those who have fulfilled the above requirements of the CFP Board can display the CFP® certification marks, which represent a high level of competency, ethics and professionalism. CFP Board's Standards of Professional Conduct require CFP® professionals to prioritize your interests above their own.
Who keeps my accounts, and who has access to them?
PFS does not maintain possession of any client assets. In general, clients’ accounts are held by Raymond James, our qualified custodian. As the custodian, Raymond James is responsible for creating statements, executing transactions, etc. We do not have the authority to withdraw anything from your accounts without your approval.
PFS does however have access to view account data. This allows us to provide you with comprehensive reporting on all accounts in your portfolio. What rate of return did you earn across all accounts last year? What expenses did you pay – to anybody, in any account – last year?
You always have full access to your own accounts and can view them at any time.
In an age of cyberattacks, how do you keep my money and private information safe?
Raymond James’ systems are continuously monitored for evidence of tampering or unauthorized activity. RJ employs comprehensive firewall and antivirus technology, as well as specialized programs to prevent and detect intrusion. RJ also maintains strict controls to limit and monitor employee access to systems.
Raymond James allows its clients to activate dual authentication on their accounts, which adds a second level of authentication to your log-in. RJ clients also have access to the RJ Vault, which is an encrypted and secure method to send and store account related documents. RJ continuously monitors and updates their security features to protect you and your investments.
Can I get a consultation on an hourly basis? I am not interested in an ongoing long-term relationship with an advisor.
Sorry, no. We no longer offer services on an hourly basis. Several years ago, we determined that we serve our long-term clients best when we remain focused on their financial planning. Likewise, we do not prepare tax returns, but instead choose to interface closely with our clients’ CPAs when needed. For our financial planning clients, we review our clients tax returns each year to see if we can recommend certain tax strategies to reduce taxable income.
Are your fees tax deductible?
Our fee is a tax-deductible item; however, it is a Schedule A deduction subject to a floor that is a function of Adjusted Gross income. Therefore, our fee may be fully deductible, partially deductible, or not deductible at all.
We can help you determine which applies. Ultimately, this is a decision for you and your CPA. We are happy to discuss the options with your CPA to help them determine what is best for you.
I've decided to take a closer look. What's the best way to get started?
Simply call us at 913.385.5523. We will provide information on our services and fees. After our call, you can decide if you're interested.
If so, you can make an appointment to come in and interview us!
Our goal in the initial interview is to get a better understanding of your financial situation. We recommend that you bring in financial documents so we can identify gaps and make recommendations. We believe this is the most productive use of time, but some people do not bring in anything but a list of questions. We will answer your questions and try to provide whatever information you need to make your decision on whether you want to hire us. There is no charge for this meeting.
I have decided to hire you. What is next?
Gathering information and analyzing your financial situation generally takes three to six weeks. We also develop the investment plan at that time, review it with you, and hopefully get your approval. After which, we accept funds and spend the first six months tailoring your investment portfolio. Next, we start on the other financial planning tasks. For you, that may be a retirement plan to see if and when you can retire or it may involve work on estate planning to get assets titled correctly to help avoid possible estate taxes or beneficiary mistakes. Additionally, you may choose to have us delve into your insurance and provide feedback. Your investment plan considers tax consequences of any proposed sale and any fees for consolidating or moving accounts, because we feel it is important for you to know and approve all aspects of your investment plan. Sometimes we even make exceptions to the usual timeline and work on some issues simultaneously if you need to make decisions sooner.
The timeline and implementation of both investment and financial planning action items are presented and discussed when we present your investment plan.
How long does it take to set up and implement a financial plan?
Gathering information and analyzing your financial situation generally takes three to six weeks. We also develop the investment plan at that time, review it with you, and hopefully get your approval. After which, we accept funds and spend the first six months tailoring your investment portfolio. Next, we start on the other financial planning tasks. For you, that may be a retirement plan to see if and when you can retire or it may involve work on estate planning to get assets titled correctly to help avoid possible estate taxes or beneficiary mistakes. Additionally, you may choose to have us delve into your insurance and provide feedback. Your investment plan considers tax consequences of any proposed sale and any fees for consolidating or moving accounts, because we feel it is important for you to know and approve all aspects of your investment plan. Sometimes we even make exceptions to the usual timeline and work on some issues simultaneously if you need to make decisions sooner.
The timeline and implementation of both investment and financial planning action items are presented and discussed when we present your investment plan.
Will you try to sell me investment or insurance while providing financial advice?
Absolutely not. We do not sell investment or insurance products, and are not associated with any third-party providers who do so. Because we do not accept commissions of any kind, clients can be assured our recommendations are not influenced by hidden financial gains to ourselves. For example, we can assist you in getting quotes from various sources for insurance products, such as life insurance and long-term care insurance. Then we can help you compare quotes and help you make decisions about the level of coverage that is appropriate. If you do not have an agent that you already work with, we can give you the names of two or three insurance agents or agencies. But we do not sell you insurance.
Likewise, when recommending investments, we have no financial incentive to advise you to purchase investment A versus investment B. We are paid the same. Our concern is what is in your best interest.
Could I talk to some of your clients as references?
Absolutely! We almost insist that you do. While it's true we are not likely to suggest someone who would speak negatively about us, there is a lot you can uncover by speaking to two or three long-term clients. You will find out what we do, and what we do not do. You can ask a client reference what they like best and least about our team. We ask clients to serve as references for us who have issues similar to yours, so you can confer on those matters and get an idea about assistance we deliver. We provide a list to our clients and to you on what those issues are, to help you format your discussion points.
