Frequently Asked
Questions:
What are our services and how do we get paid?
We offer two types of services.
1. FINANCIAL PLANNING ONLY
We charge for financial plans by the hour,
the project (hourly rate times the estimated number of hours) or
retainer. This service can include:
• Retirement/transition
planning
• Investment
review
• Tax
planning
• Risk
management (e.g., disability, life and long-term care insurance)
• Long-term
care planning
• Estate
planning
Minimum financial planning fee is $2,000.
2. INVESTMENT SERVICES
We also offer investment services for our
comprehensive management clients. We are compensated by a percentage
of the assets managed or retainer. It includes:
• Financial
planning
• Investment
management
• Tax preparation services available
Minimum annual fee is $5,000.
Most clients begin as financial planning
clients. They are billed for the project. It gives us an opportunity
to see how well we work together. After the project, if you become
a comprehensive management client, the fee for the financial planning
project is offset against the comprehensive management fee.
What does financial planning involve?
Financial planning is a review and analysis that can cover any or
all of the following areas:
• Investments: How are you invested now?
Is it aligned with your future goals?
• Retirement/transition
planning: Where are you today? Is it consistent with your goals?
• Withdrawal:
How do you replace your paycheck?
• Rollovers:
Should you rollover your 401(k) plan?
• Pensions:
Should you receive monthly income or roll the balance to an IRA?
• Taxes
• Risk management
(for example: disability insurance, long-term care insurance)
• Elder
care issues
• Estate
planning
What is diversification?
Diversification is the combination of various classes of assets
in a portfolio. These classes may include:
• Cash
and cash equivalents;
• Bonds
• Domestic/International
large-, medium-, and small-size companies
• Tangible/Real Assets
(commodities, real estate, etc.)
What are value-style mutual funds?
They
are mutual funds containing companies with stock prices that are
undervalued by the market — these companies have lower-than-market
Price-Earning (P/E) multiples. A portfolio manager invests in these
stocks, believing that they will increase in value. Stated another
way, value managers want to buy companies that will grow but at a
sale price.
What are growth-style funds?
They are mutual funds
containing companies growing more rapidly than the market — they
have higher-than-average P/E multiples. The portfolio manager feels
the growth of earnings will result in rising stock prices.
How does Financial Connections buy mutual funds?
We handle all transactions through our custodian, TD Ameritrade
Institutional Services. You receive a monthly statement and any trade
confirmations directly from TD Ameritrade.
How do I know how my account is doing?
TD Ameritrade sends monthly statements or you can receive them electronically.
Each quarter you receive a performance report from Financial Connections.
However, we ask all clients to think in terms of years rather than
quarters.
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