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
2. INVESTMENT SERVICES
We also offer investment services for our ongoing management clients. We are compensated by a percentage of the assets managed or retainer. It includes:
- Financial planning
- Investment management
- Long-term care consulting
- Tax preparation services available
Minimum annual fee is $7,500.
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 an ongoing management client, the fee for the financial planning project is offset against the comprehensive management fee during the first year.
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?
- 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;
- 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.