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Frequently Asked
Questions
1. Please tell me about the financial planning process. Financial planning is a multi-step process that provides you
with two important things: (1) An in-depth review of your current financial
situation, and (2) a blueprint that shows you how to achieve your goals and
objectives for the future. At Kirchmier Financial Services, LLC, the
financial planning process consists of seven distinct steps (see the Steps
To Planning Success tab for details on our unique financial planning process). It is important to remember that
financial planning is a process . . . not an event.
2. How do you create this blueprint? First we focus on your goals,
objectives, priorities and values. For instance: the reduction of current
and future income taxes may be an immediate goal, funding a quality
education for your children and/or grandchildren may be an intermediate
goal, and enjoying a secure financial future in your retirement years is likely
to be one of your most important long-term goals. Another great goal in
life for some people is creating wealth and/or leaving a legacy for your
chosen beneficiaries or charities. You may already be on the road to
meeting these objectives and simply need a new strategy, professional
insight, or to fine-tune your plan. You may just be starting out, or you
may be somewhere in between. Whatever your unique situation may be,
everyone needs a periodic assessment of where they are on the road to
meeting their financial goals. That’s why we do an in-depth review of your
current financial situation. Next, you need to know how you can set about
achieving (or continue working toward) your financial goals. By focusing on
cash flow, investments, taxes, pensions and retirement plans, estate
planning, insurance issues, savings opportunities and other general
financial matters, we design a customized financial plan for you. Finally,
for you to achieve the intended results, you must implement and monitor
your plan.
3. Sounds like a lot of work! It may seem like that at first, but the good news is, if you follow
your plan and maintain a disciplined approach, you can rest well knowing
you can reach your stated goals. At KFS, we try to make the process as easy
as possible for you. In addition to receiving professional advice on your
most important financial concerns, we can also provide implementation and
ongoing asset management services, if appropriate for your needs.
4. Who can benefit most from your services? Any person seeking financial peace of mind can benefit from our
services. We serve people at all income levels, from all walks of life.
Clients have the flexibility to work with us on either a one-time,
as-needed basis or an ongoing basis. We welcome clients who simply need a
one-time financial consultation or a second opinion, as well as those who
need comprehensive financial planning and possible ongoing asset management
services. In addition, any corporation or organization seeking quality,
unbiased financial education for their employees or members can benefit
from our financial education programs
5. What is ''Fee-Only'' financial planning and why should that
be important to me? Because we are
Fee-Only financial planners, all conflicts of interest regarding compensation
are removed. We do not accept sales commissions; we work solely for our
clients. Because we do not sell financial products such as investments and
insurance, there are no third-party relationships or outside influences to
color our thinking and financial recommendations. For more information on
Fee-Only financial planning, including our Code of Ethics, Fiduciary Code
and member requirements, please visit www.NAPFA.org. In addition, our firm is a Registered
Investment Advisor (RIA); as such, we must comply with a host of federal
and state regulations designed to protect the consumer. One important
question you should always ask when considering a financial planner’s
services: ''May I please have a copy of your ADV Part II?'' This document
contains important information about the planner’s qualifications,
fiduciary duties, history of any past violations, etc. We will give you our
ADV Part II at or before our first meeting.
6. I understand the benefits of working with a Fee-Only
financial planner, but I might need to obtain financial products. How will
I be able to do that? While we do not
sell financial products, we will offer specific recommendations and
opinions regarding the purchase of the various financial products that may
be appropriate for you. So, if you need to obtain an insurance policy or a
new mortgage, invest into a portfolio of mutual funds, or find an estate
planning attorney or tax professional, we can direct you to the resources you
need and/or help you obtain these products and services. If appropriate, we
can also help you implement your plan and set up your accounts.
7. Does Kirchmier Financial Services provide only comprehensive
financial planning? No. Although a
comprehensive financial plan can provide the greatest benefits, we can
limit our advisory services to your specific needs, such as cash management
and budgeting, investment analysis or college education funding.
8. My spouse and I are just beginning to build for our
financial future. There is so much to learn! We need help and guidance to
get started. Will you accept us as clients? Yes. Some firms have income levels
and/or net worth minimums but, at KFS, we realize that everyone has
financial needs. We are proud to work with people from all income levels,
and all walks of life. Remember, ''You don't have to have a fortune to
start building one.'' Call us today and let's get started.
9. I have already accumulated substantial assets and think I am
doing quite well. But as I progress and build for the future, things seem
to be getting more complicated. I want to be sure I am on track, but I
don’t always have the time or inclination to manage the myriad details by
myself. Can you help me? Yes. People
who need more sophisticated financial planning or advice will find our
services appealing and beneficial. If you have a desire to simplify your
financial affairs, our Ongoing Retainer Client Program may be right for
you. If you are looking for a professional review or a second opinion to
ensure you are on track, we can provide that, too.
10. I’m in charge of the retirement plans and employee benefits
at my firm. I would like to increase the number of employees who
participate in our benefit programs. How can you help us? Corporate education is key in
building employee participation. We have direct experience in this area
from when we were in corporate financial management and can help your
employees understand the benefits of your programs. Please call to discuss
your specific needs. We can custom-build an educational program for your
company.
11. What types of securities do you provide advice for? We provide advice for all types of
securities, including mutual funds, stocks (as they relate to your
portfolio holdings), bonds, bank deposits, variable and fixed annuities,
limited partnerships and tax shelters. We also provide advice on mortgages,
budgeting and cash flow issues, 401(k), 403(b) and other retirement
programs, stock options, life and disability insurance, etc. If it has to
do with money and finances, we can provide counseling, guidance and/or
resources for you. Because we want our clients to know that they can call
on us with any and all of their financial concerns, we have developed the
slogan ''Financial Planning and Advice for Everyday Life.'' Clients are
encouraged to call us when they have a major life event, such as a new job,
a baby, a marriage or divorce, or if they are planning to buy a new home or
start their own business. We also encourage our clients to call us with
more common everyday questions, such as: ''How should I invest within my
401(k) or 403(b) plan?'', ''How can I reduce my taxes?'', ''What advice can you offer on refinancing my home?'',
or ''How can I maximize my Flex Spending Account, Cafeteria Plan or Section
125 Plan at work?''
12. If I use Kirchmier Financial Services, LLC to develop a
financial plan, am I obligated to purchase the
recommended products? Absolutely not. We will
offer recommendations which in our professional opinion will meet your
needs and objectives, but you are under no obligation to purchase them. In
today’s competitive market, it makes sense to shop around for the best
available product or service. For instance, if you need to obtain a life
insurance or disability policy, we will suggest the kind of policy, which
riders and what amounts may be best for you. We will then direct you to a
choice of companies that can provide a quality product at competitive
prices for you. If you wish, we can help you purchase investments and/or
set up your accounts with a third-party custodian such as a discount broker.
13. Tell me about your investment philosophy. As financial planners and investment
consultants, we believe in the following fundamental principals with regard
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, needs for
current income or liquidity, and special considerations such as income and
estate taxes. The important thing to remember is that no one can predict the future. It is difference of opinion that makes a market. Investment
and economic ''experts'' provided with the same information often come to
different conclusions. We do not suggest that we can, or that any of
the money or mutual fund managers that we recommend, will make the correct
decision every time. We do believe, however, that studying the historic
trends and relationships of investment classes and the philosophies and
approaches of successful investment managers can provide valuable insight.
The appropriate allocation of investment assets for your goals and risk
tolerance is the most important component in developing an investment
portfolio. We believe that having a diversified, well-balanced portfolio,
following long-term buy-and-hold strategies, and having patience will
increase the likelihood that a person will achieve his or her long-term
financial objectives.
14. How do you select investments for a client? Before we recommend any investment, we consider the current
economic conditions, the outlook for that asset class or type of security
and how this investment fits within your portfolio given your objectives
and tolerance for risk. For equity investments, we focus primarily on the
philosophies, experience and track record of the management team. With
fixed income investments, we look for the best yield available for a given
quality of security. As fiduciaries for our clients, we strive to obtain
the most appropriate investment vehicles to meet your objectives, while
being very conscious of total expenses and risk exposure.
15. How much will my financial plan cost? Financial planning fees are determined
on a project basis; the total fee for a financial plan will vary from
client to client based on the specific needs and complexity of your
situation. An estimate of the cost is provided after the Get Acquainted
Meeting, when your personal needs are fully
identified. Ongoing retainer clients pay a fee that is mutually agreed-upon
and which is based on the complexity of the services that each client
desires.
16. Are your fees tax deductible? Yes.
Section 212 of the Internal Revenue Code permits an itemized deduction 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 a personal tax
return.
17. Once my financial plan is completed, will our relationship
end?
Depending on your client track, the
actual engagement of services may end, but the majority of our clients
choose some sort of Continuing Client Program. Our professional
relationship can continue with additional areas that you want us to review
or with periodic annual or quarterly reviews under a retainer
arrangement. Because financial
planning is a process and not an event, we
offer ongoing services, periodic reviews and day-to-day consultation as
requested and/or needed.
18. How can I get started? The
first step is an initial inquiry from you. Call us at (954) 961-9162 or email us at info@kirchmierfinancial.com. We offer an initial no-cost, no-obligation Get Acquainted Meeting,
either on the phone or in our offices. For Get Acquainted Meetings,
appointments are scheduled based on availability during regular business
hours of 9-5, Monday through Friday. Expanded office hours are available to
accommodate special needs or emergency situations. Should you decide to
engage our services, we can discuss which of our services and client tracks
is appropriate for you. Most clients find the financial planning process to
be stimulating and enlightening. The end result, of course, is greater
peace of mind. We look forward to helping YOU build a brighter financial
future!
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