FREQUENTLY ASKED QUESTIONS

The CERTIFIED FINANCIAL PLANNER™, CFP® and federally registered CFP (with flame design) marks (collectively, the “CFP® marks”) are professional certification marks granted in the United States by Certified Financial Planner Board of Standards, Inc. (“CFP Board”). The CFP® certification is a voluntary certification. No federal law, state law or regulation requires financial planners to hold CFP® certification. It is recognized in the United States and a number of other countries for its (1) high standard of professional education; (2) stringent code of conduct and standards of practice; and (3) ethical requirements that govern professional engagements with clients.

Currently, more than 100,000 individuals have obtained CFP® certification in the United States. To attain the right to use the CFP® marks, an individual must satisfactorily fulfill the following requirements:

• Education – Complete an advanced college-level course of study addressing the financial planning subject areas that CFP Board’s studies have determined as necessary for the competent and professional delivery of financial planning services. One must also attain a Bachelor’s Degree from a regionally accredited United States college or university (or its equivalent from a foreign university). CFP Board’s financial planning subject areas include professional conduct and regulation, financial planning, risk management, insurance planning, investment planning, tax planning, retirement savings, income planning, and estate planning;
• Examination – Pass the comprehensive CFP® Certification Examination. The examination is administered in two 3-hour sections. It includes case studies and client scenarios designed to test one’s ability to correctly diagnose financial planning issues and apply one’s knowledge of financial planning to real world circumstances;
• Experience – Complete 6,000 hours of financial planning-related experience or 4,000 hours of apprenticeship experience; and
• Ethics – Agree to be bound by CFP Board’s Standards of Professional Conduct which is a set of documents outlining the ethical and practice standards for CFP® professionals.

Individuals who become certified must complete the following ongoing education and ethics requirements in order to maintain the right to continue to use the CFP® marks:

• Continuing Education – Complete 30 hours of continuing education every two years. This includes two hours on the Code of Ethics and 28 hours covering other parts of the CFP Board's Principal Topics. Completion of hours is required to maintain competence and keep up with developments in the financial planning field; and
• Ethics – Renew an agreement to be bound by the Standards of Professional Conduct. The Standards prominently require that CFP® professionals provide financial planning services at a fiduciary standard of care. This means CFP® professionals must provide financial planning services in the best interests of their clients.

CFP® professionals who fail to comply with the above standards and requirements may be subject to CFP Board’s enforcement process, which could result in suspension or permanent revocation of their CFP® certification.

For your convenience and safety, we give our clients the option to of using Charles Schwab, LPL Financial, and Inspira Financial as the custodians for our client assets, and provide full access to online portals that provide comprehensive reporting tools

Charles Schwab

LPL Financial

• As the nation’s largest independent broker-dealer, LPL holds over $1.6 trillion of total client assets with the support of its 8,400+ employees. Your LPL account can be viewed HERE at any time.

Inspira Financial

• Inspira Financial (formerly Millennium Trust Company) holds more than $63.1 billion of total assets under custody, specializing in providing custody solutions for unique assets. FAN utilizes Inspira’s services to custody assets in first trust deed investments on a non-discretionary basis. Your Inspira account can be viewed HERE at any time.

Imagine going to your doctor with a concern about your heart, and before running any tests, the doctor tried to sell you a pacemaker. The doctor then explained that you needed to act today before prices went up. Later, you learned that the doctor was paid extra to promote this particular brand of pacemaker. While absurd for the medical profession, this scenario closely resembles much of the investment world.

As a firm, we take very seriously our Fiduciary duty to always act in the client’s best interest (vs. just trying to sell you a product). In addition to a legal obligation, for more than 25 years, our firm has been built on a foundation of placing the client’s interest before any thoughts of our own compensation. We recommend clients use the same investment strategies we use in our personal accounts and the accounts of our immediate family members. Our commitment to honest and ethical behavior has allowed us to build a very successful firm. Talk with one of our advisors today to discuss your financial future.

Yes, absolutely. We have clients in many different states and consistently have remote Financial Checkups with them. Financial Checkups are also held when clients come into town.

We typically work with high net worth clients who are either getting ready to retire, already retired, or are business owners. A lot of work is also conducted with our clients’ beneficiaries.

In order to mitigate potential conflicts of interest, our financial planning services are paid for on a flat fee or an hourly basis, rather than on a commission.

As detailed in our client agreements, each quarter we deduct a fee, equal to one quarter of your annual advisory fee, directly from the accounts under our management. This deduction is detailed in the quarterly statement we provide to every client.

Please call our office for our fee schedule. Any fee is too high in the absence of service. The comprehensive financial planning we provide to you will clearly quantify the benefits you will receive. We believe our dedication to the following attributes not only support our advisory fee but also help us to strengthen lifelong relationships with our clients:

• Holistic approach to financial planning
• Transparency in how we do business
• Highest level of quality service
  

Yes. Financial Advisors Network is an independent advisory firm and uses the Registered Investment Advisor model. This means we are not incentivized to sell big firm products. We are incentivized by the success of our clients’ account portfolios and are paid on a flat percentage based on our clients’ account size. Some of the products and accounts we help manage:

• Stocks
• Bonds – Treasuries, Agencies, Corporate and Municipal
• Mutual Funds
• Money Market Accounts
• Certificates of Deposit
• Annuities - Variable and Fixed
• Life Insurance - Variable, Universal and Term
• Long-Term Care Insurance
• Disability Insurance
• 529 College Savings Plans
• Individual Retirement Accounts (IRAs)
• Qualified Retirement Plans - 401(k), 403(b), Pension and Profit Sharing
• Private Managed Accounts
• Non--Qualified Retirement Plans
• Deferred Compensation Plans

We currently serve over 750 households, totaling more than $975 million advisory assets under management. The majority of our clients are retired, or close to it. Our clients’ investments range from $250,000 to over $30,000,000.

We focus on a holistic view of our clients’ portfolios to ensure the investment strategy is working cohesively with tax, real estate, Social Security and pension plans. Financial Advisors Network’s account services include regular check-ups, annual financial plan updates, year-end tax planning, ongoing review of non-manageable assets, insurance review, estate plan review, cost basis reporting and regular rebalancing of managed assets. Additionally, we provide our Gold Medal Services, which is included in the advisory fee.

We typically meet 2-4 times annually. Client education is a big focus for our firm. We publish regular newsletters and economic updates explaining key concepts for our clients. We also hold regular client education events on an assortment of topics.

As a client, you have full access to our FAN Plan system via our online reporting tool HERE. In addition, clients will be assigned a servicing team member who will be able to address any client questions or concerns with the highest level of quality service.

We have assisted clients seeking strategies for planning for an assortment of financial issues such as 401k plans, IRS audits, family deaths, disability, tax issues, estate planning, debt, Social Security, Medicare, health insurance, college, gifting and many more. While we certainly do not have all the answers, through our network of resources, we will not stop until an appropriate strategy has been found.

At Financial Advisors Network, we believe in maintaining a team approach when managing our clients’ accounts. We have built a unified group of professionals to guide you through the financial maze. Our team philosophy allows us to service your financial planning needs with the highest level of quality assistance.

Each one of our clients is assigned a servicing team member who is available to address any client questions or concerns. Our office is open Monday through Friday, 8:00am to 5pm any day the stock market is open. See the Our Team page for a full list of our staff and their roles at Financial Advisors Network.