^{Friedman financial}
FAQs

• What is typically included in a financial plan?

  A financial plan helps you manage your money wisely. With a financial plan based on your situation and goals, you can get help with:

  • Budgeting, spending, saving, paying down debt
  • Determining the order to tackle financial goals
  • Reducing taxes now and in the years ahead
  • Smart, diversified investing for your goals
  • Strategies to optimize your income
  • Planning for a comfortable retirement
  • Having the right insurance coverages
  • Making the most of your job benefits
  • Saving for your college expenses
  • Passing on wealth to your family
  • Donating to causes you care about
  • Creating a streamlined estate plan

  A financial plan is a custom roadmap that helps you work toward your financial and life goals. Along the way, we adjust your financial plan as big life changes or unexpected curveballs happen.

• What strategies can a financial planner use to maximize the amount of money and assets I leave behind for my family?

  Estate planning is an important part of getting your finances organized and protecting your wealth.

  We look at the tax limits for any money/property you plan to pass down after death. Then, we look at opportunities to restructure accounts so you can potentially pay less estate taxes to the government. We also help you run the numbers to decide if you should pay more taxes now so your kids pay less tax on their inheritance later.

  Our team knows estate planning can be intimidating, but we’re great at breaking down the process, making it approachable, and keeping you on track for the completion of all your important documents.

• Are your financial plans custom for every client?

  Yes. Your financial plan is like your thumbprint, unique to you. No two clients in our firm have the same financial plan. Here’s why…

  First, we learn about your personal relationship with money, goals, and how you want to use your money to live a good life today and have a secure future.

  While there are similar elements to a sound financial plan, no one has all the same details or goals. This is why there is no cookie-cutter advice with our firm.

  Then we build a plan around what's most important for your life now and long-term. Our goal is to help you live well now, while also planning responsibly for your future.

  And that looks different for everyone.

  Finally, what makes our plans unique is that we don’t just teach you how to save. Our goal is to show you how you can spend in meaningful ways, too.

  While we have helped many clients plan for long, wonderful lives, we’ve also seen the brevity of life, too. This is why a great balance between planning for today and tomorrow is important.

• What is financial life planning?

  Financial Life Planning is a specific process to help us understand the goals and values that drive your financial plan. The more we know about you, the better we can serve you.

• What advice do you have on how to find a good financial planner?

  Check their credentials, make sure they specialize in your situation, and see if their services fit your needs.

  We highly recommend working with a CERTIFIED FINANCIAL PLANNER®. A CFP® is one of the highest designations a financial advisor or planner can achieve.

  All CFP®s have to complete hundreds of hours of coursework, get years of industry experience, and have high ethical standards.

  Most importantly, you need to trust who you hire as your long-term financial partner. You'll share deep personal information and rely on their guidance.

• Once you know they are qualified, great questions to ask yourself are:
  • Are they a good personality match for me?

  
  

  • Is this someone my partner also gets along with as well?

  
  

  • Does their service model work for what I need?

  
  

  • Do they specialize in working with people like me?

  
  

  • Will I receive a cookie-cutter plan or a custom plan?
• What services do financial advisors provide?

  A financial advisor is someone who can help you with your money and investment strategy. Our job is to give you guidance on things like saving money, investing, planning for retirement, and more.
  Here are some of the main ways we often help people like you who want a financial advisor:

  • Financial Planning: As a financial advisor, we will look at your current money situation and help you make a plan to reach your financial goals. This includes making a budget, managing your cash flow, paying off debt, and setting realistic targets for yourself.

  
  

  • Investment Advice: We can recommend different investment options based on your comfort with risk, how long you have until you need the money, and your money goals. Our team will look at things like stocks, bonds, mutual funds, exchange traded funds, digital assets, and other investments to help you build a balanced portfolio.

  
  

  • Retirement Planning: We can help you plan for retirement by figuring out how much money you'll need to retire, suggesting which retirement accounts to use and in what order, and making sure your savings are on track over time. We can also advise you on when to start taking Social Security and how to convert your retirement savings into retirement income when it’s time for you to stop working.

  
  

  • Risk Management: As financial advisors, we evaluate risks that could affect your money and help you manage them. We look at your insurance needs, like property and casualty, life, health, disability, and long-term care insurance, and recommend the right coverage to protect you. Insurance is a transfer of risk. The more successful you become, the more important it becomes to protect what you have.

  
  

  • Tax Planning: As we build your financial plan, we look for legal and proactive ways to reduce how much you pay in taxes now and in the years ahead. We work with your CPA or tax professional to reduce the stress you have during tax season, too.

  
  

  • Estate Planning: What do you want your money to do for those you love when you’re gone? Our team can help you create a plan that will protect and pass on your assets to your family. We can also work to reduce the taxes paid after you pass. Estate planning can include creating wills, trusts, and powers of attorney, and working with legal experts.

  
  

  • Money Education and Communication: Beyond the nuts and bolts of your financial plan and investments, we also help you understand how your emotions and biases influence your financial decisions. We have a financial therapist on our team as a resource to educate our team and continue to improve the support we give clients.

  
  Our goal is to be your guide and “thinking partner” when it comes to all the ways money impacts your life and the decisions you make on how to spend, save, and invest it.

• When is a financial advisor a fiduciary?

  A financial advisor is a fiduciary when they are legally required always to put your needs first and give you advice that is best for you, even if it means they make less money.

  This means they have to:

  1. Be very careful and thorough when giving you advice, considering all important factors.

  2. Tell you everything you need to know to make good decisions, like what fees you'll pay and any risks involved.

  3. Avoid conflicts of interest or handle them fairly by being fully transparent and making sure you come first.

  4. Always be honest and act with integrity, putting your interests ahead of their own or their company's.

  Not all financial advisors are fiduciaries. In the U.S., there are two main standards they can follow:

  • Fiduciary Standard: Advisors who are fiduciaries are legally required to always do what's best for you. This includes Registered Investment Advisors (RIAs) and CERTIFIED FINANCIAL PLANNERS® (CFP®s).
  • Suitability Standard: Advisors following this lower standard only need to give you options that are suitable based on your situation and goals. This applies to brokers and some other financial professionals.

  When choosing a financial advisor, it's very important to know if they are a fiduciary or not. A fiduciary is legally bound to give you advice that is truly best for you.

• What questions should I ask a financial advisor?

  Don't be afraid to ask plenty of questions. A good advisor takes the time to understand your unique situation and goals. The more you know upfront about a financial advisor, the better you can decide if they're the right fit.

  Here are questions you should consider asking a financial advisor:

  • How long have you been a financial advisor, and what training do you have?
  • What certifications or licenses do you hold?
  • Who are your typical clients - individuals, families, or businesses?
  • How do you approach creating financial plans and managing investments?
  • What is your investment strategy and philosophy?
  • How do you determine how much risk I'm comfortable taking?
  • How often will you update me on how my investments are doing?
  • Besides investing, what other services do you provide (retirement, tax, or estate planning)?
  • How do you get paid - fees, commissions, or both? How much will I pay?
  • Are you a fiduciary legally required to put my interests first?
  • How do you handle any conflicts of interest?
  • Can you explain how you'll help me minimize taxes?
  • Do you work with a team or other professionals like tax experts?
  • How will you guide me during volatile or down markets?
  • Can you give examples of how you've helped clients reach their goals?
  • How often do you review and adjust investment portfolios?
  • What's your process for creating a custom, unique financial plan for me?

  It’s important to consider the personality and demeanor of an advisor, too.

  You’ll be going to them for important financial guidance. Hire someone you and your spouse feel comfortable working with.

• What is a CFP® certification for a financial advisor, and why does it matter?

  A CFP® stands for CERTIFIED FINANCIAL PLANNER®, and it’s the highest certification for financial planning. This special certification demonstrates a financial advisor has a high level of knowledge in helping people plan their finances.

  To become a CFP®, advisors have to go through an in-depth and challenging process:

  • Education: They must complete in-depth coursework on investing, retirement planning, taxes, estates, and insurance from an approved program.
  • Exam: Advisors must pass a challenging exam that tests their ability to apply financial planning concepts to real situations.
  • Experience: They need at least a few years of hands-on experience working in financial planning, either directly with clients or in a support role.
  • Ethics: CFP® advisors must follow strict ethical standards that require them to always act in the best interests of their clients and provide unbiased advice.
  • Certification: Once all the requirements are met, advisors can officially become Certified Financial Planners and use the CFP® designation.

  Working with a CFP® gives you confidence your advisor has the comprehensive knowledge and ethical commitment to provide truly well-rounded financial guidance tailored to your unique situation and goals.