Why should I use a financial advisor ?

Could you explain the kind of financial planning you do for people ?

Who are your typical clients ?

Do I have to fill out your Data Form?

What if I just want to hire you to create a financial plan -- but not manage any of my money ?

How do you choose your investments ?

What is your investment philosophy --- are you a "buy and hold" money manager or a market timer ?

What happens if I have an investment that I like and you're not using it in your portfolios ?

Once we agree on the type of portfolio I need, will my account have the exact same allocations as your model portfolio ?

Do I have a choice in how I pay for your services --- either commissions or fees ?

What specific reports can I expect to receive from you ?


Q. Why should I use a financial advisor ?
A. Numerous studies have shown that successful people use professional advisors. Your relationship with a professional advisor should be highly personalized. It should also be a partnership that mutually pairs your knowledge of where you're going with the knowledge the advisor has in helping you get there. Your advisor should be someone that not only works with you . . . but also works for you with your best interests in mind at all times.

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Q. Could you explain the kind of financial planning you do for people ?
A. I create separate models for each planning area and then integrate them into one total plan using various time lines for completion. That way, when one of the planning areas has to be re-evaluated and possibly changed, I can simply re-work that planning model and plug it back into the overall plan so that none of the other models are adversely affected.
The models I create include strategies on cash flow, income taxes, estate planning, risk management, retirement planning, education funding, business planning, employee benefits planning, mortgage planning, buying vs leasing a car, and any other specific needs.

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Q. Who are your typical clients ?
A. My typical clients are people who believe in developing a strategy for reaching their life goals using a professional advisor. They are not "do-it-yourselfers". They are people who are open to learning about ways to build potential wealth and reach their goals. I recently analyzed my client base at the end of 2009 and discovered that my average client is 60 years old with an average net worth of $ 729,000. 62% of my clients are still employed and the other 38% of my clients are retired. Also, 1/3 (one-third) of my clients own their own business.

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Q. Do I have to fill out your Data Form?
A. Yes. The Data Form is absolutely essential in defining who you are to me and what you want me to do for you. I personally designed the Data Form to capture all of the information I need about you, your family, and your situation so I can "prescribe" the right strategies for you. It's just like going to the doctor's office. Will a doctor examine you without having you fill out a medical profile ? No. Will a doctor prescribe medicine without asking about your medical history ? No. Can I properly advise you and recommend strategies without a completed Data Form ? No.

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Q. What if I just want to hire you to create a financial plan -- but not manage any of my money ?
A. From time to time, I have people who want to hire me to just create financial planning models without actually having me manage their money. I will do these models for a flat fee. My minimum fee fee is $ 250 per model with a maximum of $ 1,500 depending on how many models you need. Historically, over 95% of the people I have created planning models for end up using me as their money manager . . . but, that's up to you.

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Q. How do you choose your investments?
A. I use a number of databases that include the vast universe of stocks, mutual funds, and exchange traded funds (ETFs) available to investors. I build diversified portfolios of quality investments by screening each selected investment using my own proprietary process. Always, I base my investment selections on diversification, quality, value, and growth at a reasonable price. My portfolios have always been a mixture of money market funds, no-load mutual funds, individual stocks, and exchange traded funds, although these securities have not been used all at the same time *.

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Q. What is your investment philosophy --- are you a "buy and hold" money manager or a market timer ?
A. I am a firm believer in being diversified. I do not believe in frequent trading. However, I also don't believe in a 100% "buy and hold" strategy as I'm not opposed to reducing equity holdings when the specific indicators I follow turn negative. This is also not to imply that I am a "market timer" per se. I simply believe that there are times when the market presents a higher downside risk than upside potential. Therefore, there will be times when preservation of capital is my main focus and not capital growth. I make portfolio changes in response to developments affecting the fundamentals of companies, industries, or the economy. In markets that are volatile and indicators point toward more downside risk than upside potential, I will sometimes raise the cash position in my portfolios if I feel the stock market, as a whole, is overvalued. However, in light of the historically dismal record of market timers, I think it's important to employ discipline and avoid large shifts in portfolio asset allocation, unless indicators point toward more downside risk than upside potential.

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Q. What happens if I have an investment that I like and you're not using it in your portfolios ?
A. Unlike some investment managers, I do not automatically sell off your entire portfolio in order to make your holdings conform exactly to my portfolios. Taking unnecessary capital gains and arbitrarily restructuring a portfolio may not be in your best interest. Instead, I evaluate your current portfolio in light of your current objectives and circumstances. Those investments that are still well matched to your goals may be retained. Those that are not will normally be sold so that the proceeds may be more appropriately reinvested.

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Q. Once we agree on the type of portfolio I need, will my account have the exact same allocations as your model portfolio ?
A. Not necessarily. I manage money using five differently allocated portfolios. Your Data Form and Risk Tolerance Questionaire will determine which of the five portfolios best fits your needs and objectives. Since none of my clients are exactly alike, I customize every client's account to fit their specific needs and risk tolerance using one of the five portfolio allocations as a guideline, however, individual circumstances may dictate slight deviations from that specific model portfolio.

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Q. Do I have a choice in how I pay for your services --- either commissions or fees ?
A. Yes. Remember, what's more important than how you pay me for my service is the decision to get a plan of action for what you want to accomplish. Whether you pay commissions or fees in implementing your plan models is a discussion we will have before implementation. I will explain the various costs both ways and leave the choice up to you. Regardless of the way you pay for implementing your plan, be assured that whatever payment structure you select will be in your best interest, not mine.

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Q. What specific reports can I expect to receive from you ?
A. All of my clients receive a monthly statement on their investment account(s) when there is activity during the month. My preference clients with managed accounts also receive a detailed quarterly performance report as well as my quarterly newsletter. Preference clients also receive an annual performance report on each of their accounts as well as a Net Worth Statement (updated at least annually). Preference clients also get an agenda-led review at least annually, if not, more frequently. Finally, preference clients have daily access to all of their accounts as of the previous day's close directly from this web site (requires password to ensure confidentiality and security).

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