Q & A

1. What is financial planning?  
2. How can a financial planner help me?
3. What if I already have a broker?
4. What if I already have an investment adviser?
5. Why should I see a financial planner when so much information is available for free on the Internet or books?
6. Don’t I have to have lots of money to get a good adviser?
7. To be frank, it just seems like a lot of money to see a financial planner.
8. What if I want or need to buy investment or insurance products?  How do I do that?
9. What is Freedman Financial Planning’s investment philosophy?
10. How do you charge for your financial advisory services?
11. Are your fees tax deductible?
12. I understand the need to see a financial planner, but what’s the rush?
13. How do we get started?

 

1. What is financial planning?
   Financial planning involves three basic steps – determining where you stand today, where you want to be in the future, and the best way to get there.  With our firm, the process involves an initial in-depth review of your current financial situation and then the design of a solution on how to achieve future goals and objectives.  If you prefer advice on only key issues, as opposed to a complete financial plan, we gladly offer that service.
   
   
2. How can a financial planner help me?
   Anyone looking for financial peace of mind can benefit from working with a good financial adviser.  We serve people at all income levels and from all walks of life.  Clients have the flexibility to work with us as much or as little as they like.  Because our fees are on an hourly basis, we offer an affordable opportunity for beginners, middle-income Americans, and do-it-yourselfers to get quality financial and investment advice.
   
   
3. What if I already have a broker?
   A broker’s primary business is to sell you securities.  Since a broker gets paid by commissions on the products being sold, there is an underlying financial incentive when the broker recommends a product to you.  At Freedman Financial Planning, we do not sell products; therefore our advice is based on what is in your best interests.
   
   
4. What if I already have an investment adviser?
   An investment adviser is only looking at one piece of your financial life – your investments.  At Freedman Financial Planning, we look at your finances from many different angles – insurance needs, estate planning issues, taxes, retirement preparedness, and other financial goals – in addition to your investments.
   
   
5. Why should I see a financial planner when so much information is available for free on the Internet or in books?
   The Internet and books are a great resource.  However, most websites or books focus on a particular area, such as investing.  In addition, each individual’s situation is unique.  Websites and books are written to appeal to a wide range of people.  But there may be something specific about your situation which would make a general piece of advice inappropriate for you.
   
   When you meet with an adviser at Freedman Financial Planning, we will look at your specific situation, and design recommendations for your needs and your goals.  By taking a comprehensive view of your cash flow, investments, taxes, pensions, retirement plans, estate plan, insurance needs, and other general financial matters, we can design a customized financial plan to meet your unique circumstances.
   
   
6. Don’t I have to have lots of money to get a good adviser?
   No.  Freedman Financial Planning has no income or investment account minimums for our clients.  We can work with you on an hourly basis for as much or as little advice as you require.
   
   
7. To be frank, it just seems like a lot of money to see a financial planner.
   A customized financial plan is an investment into your financial future which can provide a return far beyond your original investment.  For example, if your 401(k) or other investments are not invested properly for your situation, then the investments may not be earning as much as they could be (or you may be risking more than you can afford to).  By adjusting the way your money is invested based on a customized financial plan, the potential earnings can far outweigh the cost of the financial plan. 
   
   A financial planner may also spot areas where your financial situation leaves you vulnerable to significant loss.  In this case, the cost of a financial plan will be trivial compared to the financial hardship you could experience.
   
   
8. What if I want or need to buy investment or insurance products?  How do I do that?
   While we don’t sell products, we do offer specific recommendations and opinions on various products and services that may be suitable for your situation.  If appropriate, and at your request, we can assist you with implementing our recommendations.
   
   
9. What is Freedman Financial Planning’s investment philosophy?
   As financial advisers and investment consultants, we believe in the following fundamental principles when it comes 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, current income or liquidity, the time until or during which the funds are required, and special considerations such as income and estate taxes.
   • Long-term buy-and-hold strategies and patience generally increase the likelihood that a person will achieve his or her financial objectives.
   • Greater diversification can be achieved by investing in mutual funds rather than individual stocks.
   • Index funds have been shown in numerous studies to have a greater return over time than actively managed funds.
   • No-load investments should be used as much as possible to eliminate the negative impact that fees and sales loads can have on a portfolio.  Every dollar which does not have to be paid in expenses is an additional dollar of return for your portfolio.
     
     
   The important thing to remember is that no one can predict the future.  Investment and economic “experts” provided with the same information often come to different conclusions.  We do not suggest that we, or that any money manager, will make the correct decision every time.  We do believe, however, that studying the historic trends, relationships of investment classes, and the philosophies and approaches of successful investment strategies, can provide valuable guidance. 
   
   
10. How do you charge for your financial advisory services?
    First of all, there is no charge for our initial consultation, which will generally take about 45 minutes.  Beyond that, we charge our normal hourly fee.  Our fees are based on the actual time involved in meeting with you in person, over the phone, or via e-mail; researching and analyzing your current situation; creating and presenting to you specific recommendations; and implementation assistance (if appropriate).  A firm quote of fees will always be provided prior to any engagement, and the final cost will never exceed the highest fee estimate given.  Please note that fees are based on the actual time involved for a project; the fee will vary from project to project and from client to client, based on the particular needs and circumstances of each project.
    
    
11. Are your fees tax deductible?
    They may be.  Section 212 of the Internal Revenue Code permits an itemized deduction for tax and/or investment advice in the miscellaneous section of Schedule A.  However, all combined miscellaneous fees must be greater than 2% of your adjusted gross income in order to be deductible.
    
    
12. I understand the need to see a financial planner, but what’s the rush?
    There are two main reasons why you should see a financial planner as soon as possible. 

    The first is because the sooner you start planning, the greater your likelihood of success.  There are many aspirations where early planning is critical; if you wait too long, your target may be too difficult to reach. 

    The second reason is because no one can predict the future.  When your finances are properly organized, you are better able to successfully manage a job loss, unexpected health problem, or other potentially devastating crisis.

13. How do we get started?
    Contact us to schedule an appointment.  There is no charge for our first meeting, which will generally take about 45 minutes.  Once you have made an appointment, we ask that you complete our Confidential Questionnaire and bring it with you to the meeting.  At our meeting, we will discuss your financial planning needs, and will provide a firm estimate of charge involved, the data needed, and a time period for completion of the work.