When searching for a financial planner, it’s not uncommon to meet with multiple firms prior to making a final decision. Different financial planners may have different opinions, philosophies, and personalities compared to one another. However, not everyone knows what to ask when they are in the process of interviewing a financial planner, which is why we put this comprehensive guide together. Without being immersed in this field, there’s no easy way to know what to ask or what the key differences are among financial planners. Below is a list of some important questions to ask during these conversations. We’ve included our answers to these questions as a means of comparison. As we say often, there’s no ‘right’ or ‘wrong’ answers to these questions, rather different philosophies when it comes to financial planning. We hope that this is a valuable resource for anyone going through the process of finding a financial planner who is the perfect fit for them.
Q: What’s your definition of financial planning and what areas will your recommendations cover?
A: We believe that financial planning involves looking at every aspect of a client’s financial life to meet both short and long term goals. This includes comprehensive planning in the following five core areas:
- Retirement Savings & Income Planning
- Investment Planning
- Tax Planning
- Estate Planning
- Risk Management
Many of our team members hold the CERTIFIED FINANCIAL PLANNER™ certification. This certification is a formal recognition of proficiency in the areas listed above. CFP® professionals must meet rigorous education, training, and ethical standards, and are expected to always serve their clients’ best interests.
Q: What are the steps in your planning process?
A: Our financial planning process starts with something we call the “Current Trajectory” analysis. As the name implies, we begin by mapping out what the future may look like based on the current path a family is on. Shining a light on the current trajectory allows us to dive deeper into someone’s financial situation and truly understand the things that are most important to them. We’ve found that this process is very informative for families since it highlights the factors that play the most significant roles in determining various financial outcomes. As we go through this process, we can identify potential action items within the five core financial planning areas listed above.
The process allows people to get a sense of the way our team works and the type of planning and value we provide. We treat everyone like clients as soon as they walk through our doors. We believe this is the best way for someone to get to know us better and determine if we’re a good fit together.
Q: How can I view my accounts and financial plan?
A: We have online access set up for all our clients where they can easily see their accounts. Furthermore, clients always have access to their entire financial plan and analysis via our interactive retirement planning and analysis software.
Q: Will your recommendations be subjective or objective?
A: Our team makes decisions based on the best interests of the individuals and families we work with. As an independent advisory firm, we can objectively research and recommend the financial planning strategies that make the most sense for the families that we partner with.
Q: Do you do tax analysis? If so, how often?
A: We believe tax planning is a substantial component of any client’s financial picture. We complete an annual tax analysis as part of the financial plans we put together. Part of our job as financial planners is to continually look for opportunities as life circumstances change or when the tax code changes. By reviewing our clients’ tax returns, we ensure that we understand the potential tax consequences associated with any financial decisions. Our team aims to minimize taxes for our clients over the course of their financial, business, and retirement plans.
Q: Will you work with my accountant and attorney as part of my plan?
A: Your accountant and attorney are integral members of your personal finance team. While our team members are knowledgeable in the tax and estate planning domains, we’ll be the first to tell you that we are not experts in these fields. However, we do collaborate with them when discussing potential strategies and making key decisions in these areas. When possible, we plan to have at least one meeting a year with both a client’s accountant and attorney. This allows us to engage with each other, stay informed, and have a shared understanding of the best interests of our mutual clients.
Q: What is your investment philosophy?
A: Our team primarily uses investment models comprised of individual stocks, individual fixed-income positions, and low-cost ETFs. This approach tends to result in lower overall investment costs. We see ourselves as investors, not traders. In other words, we believe in a buy-and-hold strategy instead of frequently trading in and out of investments. We have an internal investment committee that meets periodically to review our investment models and discuss any proposed changes.
Q: How often will we meet?
A: Meeting cadence can vary from client to client depending on their unique situation and life stage. We meet with many of the families we work with on a quarterly basis, but we see some more or less frequently depending on what works best for them.
For questions, clarifications, or more information, please contact:
Justin Rush, CFP®, MBA
Email: [email protected]
Direct: 248.756.3268 / Office: 248.449.5436