Fee-Only Financial Planning: How to Make It Work for You

Fee-Only Financial Planning......Page 1
Contents......Page 8
Preface......Page 14
Acknowledgments......Page 18
1 Overview of Financial Planning......Page 22
Skills of the Successful Financial Planner......Page 23
The Planner as the Team Coordinator......Page 25
Public Perceptions of Financial Planners......Page 26
Origins of the Fee-Only Planner......Page 27
Advantages to the Client......Page 30
Advantages to the Planner......Page 33
No Guarantee for the Client......Page 36
You Must Service What You Sell......Page 37
You Receive No Subsidy......Page 38
You Must Attract New Clients......Page 39
You Must Create the Want......Page 40
Still a Young Profession......Page 41
Seek Out a Mentor......Page 42
Six Questions for the Would-Be Planner......Page 44
Where Are You Coming From?......Page 50
5 Succeeding with the Small Client......Page 54
How Can I Service the Small Client and Still Be Profitable?......Page 55
How Much Time Does a Client Take?......Page 56
Developing a System to Save Time......Page 57
Attitude Adjustments......Page 59
6 Establishing a System......Page 62
How a System Helps Your Clients......Page 63
Qualifying Clients......Page 64
Organizing Client Information......Page 65
The First Meeting (Prospective Client Meeting)......Page 67
The Second Meeting (First Presentation Meeting)......Page 69
The Third Meeting......Page 72
The Fourth Meeting......Page 73
Implementation......Page 74
Management Review......Page 75
Alternatives: In Style, but Not in Substance......Page 76
Targeting Your Market......Page 78
Encouraging Client Involvement......Page 81
Establishing and Maintaining a Client Relationship......Page 83
8 How to Market and Survive in a Fee-Only Practice......Page 86
Marketing a Concept......Page 87
Marketing Yourself—Some Tried-and-True Methods......Page 89
Tried and Untrue Methods......Page 92
A Commonsense Method......Page 93
9 Structuring Your Office for Maximum Productivity......Page 96
Inside versus Outside Experts......Page 97
Setting Up Shop......Page 98
Setting Goals for Your Business......Page 100
Administrative and Professional Management......Page 101
Computerizing Your System......Page 104
10 Bringing In a Partner......Page 108
The Psychological and Financial Aspects......Page 109
Some Remedies; Few Cures......Page 113
11 Fees......Page 118
Appendix A Confidential Questionnaire......Page 122
Figure A.1 Documentation Checklist......Page 123
Figure A.2 Personal Information......Page 126
Figure A.3 Advisor Summary......Page 127
Figure A.4 Safe-Deposit Box and Marriage......Page 129
Figure A.5 Personal Goals Summary......Page 130
Figure A.6 Cash Flow Forecast......Page 131
Figure A.7 Asset/Lifestyle Accounts......Page 133
Figure A.8 Real Estate Interests......Page 135
Figure A.9 Liabilities......Page 136
Figure A.10 Credit Cards Summary......Page 138
Figure A.11 Investment Accounts......Page 139
Figure A.12 401(k) Summary......Page 140
Figure A.13 Business Interests Summary......Page 141
Figure A.14 Partnership Interest Summary......Page 143
Figure A.15 Employee Census Information......Page 144
Figure A.16 Property and Casualty Insurance......Page 145
Figure A.17 Life Insurance......Page 146
Figure A.18 Health Insurance......Page 147
Figure A.19 Disability Insurance......Page 148
Figure A.20 Will—Husband......Page 149
Figure A.21 Will—Wife......Page 150
Figure A.22 Revocable Trust......Page 151
Figure A.23 Testamentary Trust......Page 154
Figure A.24 Durable Power of Attorney—Husband......Page 155
Figure A.25 Durable Power of Attorney—Wife......Page 156
Figure A.26 Health Care Proxy—Husband......Page 157
Figure A.27 Health Care Proxy—Wife......Page 158
Figure A.28 Health and Disability Insurance Planning......Page 159
Figure A.29 Estate Planning......Page 160
Figure A.30 Retirement Planning......Page 162
Figure A.31 Education/Dependent Planning......Page 164
Figure A.32 Income Planning......Page 166
Figure A.33 Fee Calculation......Page 167
Appendix B Second Set of Forms Needed......Page 170
Figure B.1 Materials and Data Required......Page 171
Figure B.2 Financial Planning Services Agreement......Page 173
Figure B.3 Letter of Confirmation......Page 175
Figure B.4 Sample Invoice......Page 176
Appendix C Sample Worksheets......Page 178
Figure C.1 Cash Flow Worksheet......Page 179
Figure C.2 Disability Planning......Page 181
Figure C.3 Education Planning......Page 182
Figure C.4 Retirement Planning......Page 184
Figure C.5 Estate Planning......Page 186
Appendix D Implementation Checklist......Page 188
Figure D.1 Implementation Checklist......Page 189
Appendix E Third Set of Forms Needed......Page 206
Figure E.1 Letter of Authorization......Page 207
Figure E.2 Letter to Participating Advisors......Page 208
Figure E.3 Guidelines for Selecting a Financial Planner......Page 209
Figure E.4 Uniform Application for Investment Advisor Registration (ADV)......Page 211
Figure E.5 Financial Planning Book Table of Contents......Page 219
Figure E.6 First Presentation Checklist/Annual
 Planning Checklist......Page 221
Figure E.7 Update Checklist......Page 223
Figure E.8 Authorization for Duplicate Confirmation Statements......Page 226
Appendix F Client Master......Page 228
Figure F.1 Financial Planning Checklist......Page 229
Figure F.2 Document Location Summary......Page 231
Figure F.3 Yearly Tickler......Page 232
Figure F.4 Portfolio Model......Page 233
Figure F.5 Buy-Sell......Page 234
Figure F.6 Life Insurance Review......Page 235
Figure F.7 Life Insurance—Husband......Page 237
Figure F.8 Life Insurance—Wife......Page 238
Figure F.9 Hospital Insurance Summary......Page 239
Figure F.10 Dental/Vision Insurance......Page 240
Figure F.11 Long-Term Care......Page 241
Figure F.12 Property/Casualty Insurance......Page 242
Figure F.13 Defined Benefit Pension......Page 243
Figure F.14 Dependent Planning—College Expenses......Page 244
Figure F.15 Irrevocable Trust......Page 245
Index......Page 248