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Working Together
The first step toward working together is an Introduction Meeting. Typically this orientation meeting entails gathering general information regarding your current situation and near-term plans. We describe CFA, our clients, and our unique approach to working with clients.
At this time we will review and discuss the process we use with each of our clients:
- Gather data
- Development of a comprehensive financial plan
- Orientation to the fundamentals of investing - "The Investment Talk"
- Development of a recommended Investment Portfolio
- Ongoing portfolio maintenance and service
Here we will also review CFA's organization, and the backgrounds of our Principals and Advisors. CFA also has professional affiliations with a Certified Public Accountant, an Estate Planning Attorney, and a Long-Term Care specialist, should our clients need these services. CFA also works with any professional advisors clients may already have.
We will also discuss CFA's Fee Schedule. We encourage clients to review the "Caveat Emptor" paper, which discusses the various forms of compensation used throughout the financial services industry.
At this point we will discuss the next step in the CFA-client relationship: data gathering, and the client's "homework" assignment:
- Review the Fact Finder
- Set appointment for next meeting
During this introduction your initial goals and objectives are identified. Throughout the introduction, and all subsequent steps, we encourage open, two-way dialogue. CFA strongly believes our process is the optimal, value-added approach to assist clients who face significant, life-changing events.
Comprehensive Data Gathering
It is during this session that we explore your current assets, liabilities, income and expenses. We establish goals with regard to retirement, education, insurance, and investment needs. This meeting allows the utilization of complete information, and greatly enhances our ability to provide you with advice that is tailored to your situation.
Comprehensive Financial Plan
The financial plan will include a balance sheet, as well as a pro forma spreadsheet that analyzes your projected cash flow situation, both now and at critical life junctures, such as retirement and/or a career change. The financial plan also tracks savings and expense habits, educational savings needs, as well as estate and insurance needs. Our system is extremely flexible, and is used extensively to compare the short- and long-term impact of financial decisions.
The Comprehensive Financial Plan is also supplemented, when necessary, with spreadsheets we have designed to assist you in analyzing important issues, such as the viability of accepting a retirement offer, or the decision of whether to take a lifetime pension or a one-time buyout.
Inner Workings of a Portfolio
We simply call this meeting "The Investment Talk," emphasizing the word "talk" as a two-way dialogue. This meeting is most helpful in assisting you to gain a better understanding of issues surrounding finance, and to afford you a greater understanding of the process involved in managing your portfolio. This meeting will also help you to become more knowledgeable of the investment vehicles we recommend in your plan, and the logic behind making those recommendations.
Initial Recommended Portfolio
The time we have mutually devoted to this process will now begin to pay off, as you have a better understanding of the many sophisticated techniques involved in the design of your portfolio. At this point, we will ask you to take the portfolio with you and make a list of any questions you may have. We want to ensure you are comfortable with the recommended portfolio and risk associated with the allocation. We will then reconvene to address your questions, and complete the Investment Supervisory Agreement.
Ongoing Portfolio Maintenance & Service
Accounts are continually monitored for appropriate asset allocation and performance. You will receive monthly account statements from your custodian (typically Charles Schwab & Co., Inc.), a quarterly newsletter, and detailed Quarterly Performance Reports. Review meetings are held on a semi-annual basis, and if, for any reason, you wish to meet more frequently, we would encourage this at no extra charge. Please keep in mind we are here to serve you at all times and are available by phone should you have any questions or concerns.
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