Common Questions

 

Is financial planning for the rich*?

Financial planning is for anyone who would like to know they are on the right path to financial independence. There is a starting point to everyone's wealth whether it be emerging affluent, affluent or wealthy. Everyone can benefit from our services, from limited coaching services where a less extensive analysis may be involved such as retirement analysis, or portfolio analysis is performed to more sophisticated comprehensive advice. You don't have to have a fortune to start building one.

 Am I qualified to be a client of Advance Financial Solutions?

Through our corporate investment advisory affiliation our managed investment account clients will typically enjoy a household income above $135,000 and have investable portfolios of $100,000 or more.  Under some circumstances, we will work with clients who do not yet meet these thresholds but are on the path to reach them in the near future or are seriously committed to further their financial success by engaging us as their financial coach.

Describe your typical client?

Our typical client range from 50 and up. They are pre-retirees, retirees, widows, divorcees, trust, Business owners, Professionals, FAA, Tinker Airforce Base civilian personel, human resource professional along with Foundations. Typically they may enjoy a net worth of $250,000 and up and have a serious commitment to create financial balance in their life. They look to us to be their partner, handle them with care, teach them what is going on in their investment portfolio and offer constructive advice. Many are people with very full lives who usually don’t have enough time to devote to their financial portfolio. Often their wealth came from disciplined savings and investing, an inheritance or a recent lump sum retirement distribution. They come to us because they recognize the value of professional guidance and advice.

Can I use your services only once just to get a handle on where I stand financially in a certain area?

Yes. You have the flexibility to engage us on either a one-time, as needed, or a retainer basis. It depends on your situation. Our minimum one time fee is $1500 which allows us to review a limited section of a comprehensive plan such as a retirement plan or, portfolio review as an example. Under these circumstances you'd work with us for a limited period of two-three months.

What is values-based financial planning*?

Values-based financial planning is a philosophy whereby the central focus is on the furthering of one's personal goals and values. In a values-based approach questions arise such as "What is most meaningful to you in life? And how can you best use your financial resources to pursue these goals and values?" From a values-based perspective, an individual decentralizes money and positions their values as the central pulling force. Money here becomes a tool rather than a goal.

 We balance a values-based philosophy with fundamental knowledge in investing* and portfolio management theory*. We believe your resources become most efficient when you first know yourself financially, secondly know your options, and third  locate the best options or strategy for using your finances in a manner that reflects who you truly are.

I know almost nothing about money and investing. When I begin your financial illumination process will it be over my head?

We begin the process assuming no previous investment knowledge. We take a simple approach to financial literacy, we go beyond graphs and numbers to include thoughtful discussions about money in life. In addition, each session builds upon the previous so that you have a complete view of the financial world.

Whom will I work with?

We do not establish a lead advisor until we get to know you and have a feel for your personality and financial needs. Since we work as a team, you can be sure that whenever you need to talk, you’ll have access to someone familiar with you and your situation.

What should I bring to this meeting?

 We ask that you fill out a short questionnaire before the meeting. This is helpful to review your situation. It helps us get to know if their is a good fit between us.


What can AFS really do for me?

We help our clients, define their goals, accumulate, grow, preserve, and provide assistance in transfering their wealth. We provide selection of investments* for their portfolio* with ongoing monitoring of those investments*. We help you gain clarity about what you want and how to get it. We work with you to set goals, develop strategies to achieve them and implement the strategies by monitoring your progress and making adjustments when necessary. We serve as your partner and accountability financial coach, advising you so that you can enjoy, and achieve your financial and life goals.

How are you compensated?  

  We are compensated two different ways: through fees or commissions. A plan that addresses the multiple aspects of a family's personal finances typically will cost $1,500 to $7,500. The initial fee  allows you to work with us for two-three months. Fees over $3,500 will begin more comprehensive planning and will generally involve 4 to 6 meetings in person or by telephone over a year. When a decision has been made that a good fit exist between us, we will quote you a price. We will be paid commissions rather then fees on assets under $250,000. Our investment management fees are quoted to you separately. This fee is based upon a percentage of assets under management. Fees are paid quarterly set at an annualized rate on assets under management:  

  • 1.50% on the first $250,000-$499,999 
  • 1.40% on the first $500,000-$749,999
  • 1.30% on the first $750,000-$1999,999
  • 1.05% on the first $2,000,000-$4,999,999
  • 0.50% on the next $5 million and over

 What are the key benefits of Investment Management Services*?

A disciplined investment manager strategy is the best way to avoid reacting to the emotional highs and lows of the market. Our investment philosophy provides you with the discipline to stay invested in the market during ups and downs.

Selection of investments* and ongoing monitoring of your investments and financial goals. Consolidated reporting of all your investments on one statement.  Sophisticated quarterly performance reports of your investments. Asset allocation* models to help potentially increase returns while helping lower risk, and determine the suitability of the current asset allocation mix. Frequent meetings in our office to review all of your reports and your concerns. Unlimited telephone consultations on your investments and financial questions.

May I deduct the fees I pay for advisory services from my taxes?

Yes you can. Section 212 of the Internal Revenue Code allows for itemization of deductions for tax and or investment advice in the miscellaneous section of Schedule A. It is subject to a 2% floor of the adjusted gross income on your personal tax return.

 

 

 *Securities and advisory services offered through FSC Corporation.

Asset allocation does not assure or guarantee better performance and cannot eliminate the risk of investment losses

Investors should be aware that investing based upon strategies or models does not assure a profit or guarantee against loss. With any investment vehicle, past performance is not a guarantee of future results.

Please note that rebalancing investments may cause investors to incur transaction costs and, when rebalancing a non-retirement account, taxable events will be created that may increase your tax liability. Rebalancing a portfolio cannot assure a profit or protect against a loss in any given market environment.