| 1. Please tell me about your financial planning process. In our approach to financial planning, we have an increased emphasis on identifying and understanding your goals and aspirations. Once these goals and aspirations are identified, traditional financial planning tools are used to develop a financial roadmap that shows you how to use your current resources to achieve those goals and aspirations. The problem most often cited by traditional financial planners today is that clients do not implement the plans that they have prepared for them. What an incredible waste of time and money! Our goal is to avoid this problem by creating financial plans that clients will be eager to implement.
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2. How do you create this roadmap? At Middle America Planning, we use some of the tools developed by The Kinder Institute of Life Planning. These tools are designed to help planners work with clients to identify their true goals and aspirations and then to build a financial plan that is centered around their aspirations. We feel very strongly that each client's true aspirations must be the centerpiece of their financial plan.
The Kinder Institute of Life Planning was founded by George Kinder, the author of the book, The Seven Stages of Money Maturity. We have been specially trained to use their Life Planning methodology. For further information, visit www.kinderinstitute.org.
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3. Sounds like a lot of work! It may seem like that at first, but the good news is, if you follow your plan, you can rest well knowing that you can achieve your aspirations. Consider your other alternatives: 1) Have no plan at all and just keep drifting along aimlessly, 2) Pay for a plan that you can't even bring yourself to implement, or 3) Implement a plan that was not designed around your true aspirations. Of these three choices, the best may actually be to have no plan at all!
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4. Who can benefit most from your services? Any individual seeking financial peace of mind can benefit from our services. We serve people at all income levels and from all walks of life. In addition to the comprehensive Life Planning described above, we welcome clients who simply need a one-time financial consultation or a second opinion. In addition, any corporation or organization seeking quality, unbiased financial education for their employees or members can benefit from our financial education programs
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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.
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In addition, our firm is a Registered Investment Advisor in the state of Pennsylvania; as such, we must comply with a host of 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 have provided an electronic copy of our ADV Part II on the "Client Forms" page of this website. If you would prefer, we would be happy to mail you a copy of our ADV Part II. Please contact us to request your copy.
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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.
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7. Does Middle America Planning 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.
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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 Middle America Planning, Inc., 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.
We provide a specialized program called "Great Beginnings" which is geared toward young individuals who are just beginning their working and financial lives. We cannot emphasize more strongly that this is a critical time period for most people. The decisions made during this time can mean the difference between a life of success and comfort or years of struggling with financial problems. Unfortunately, although this is such a critical period, it is also a time when there are not many extra dollars available for professional advice. Because of this, we make this program very affordable by focusing on the high level issues while the clients see to the time-consuming details.
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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 services 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.
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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. Please call to discuss your specific needs. We can custom-build an educational program for your company.
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11. For what types of securities do you provide advice? 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. We also provide advice on mortgages, budgeting and cash flow issues, 401(k), 403(b) and other retirement programs, life and disability insurance, etc. 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 Benefits Plan at work?''
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12. If I use Middle America Planning, Inc. 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.
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13. Tell me about your investment philosophy. As financial planners and investment consultants, we believe in the following fundamental principles 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 one will achieve their long-term financial objectives.
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14. How do you select investments for a client? We are strong belivers in the "efficient market theory". What this means is that over the long term, it is extremely difficult, if not impossible, to "beat the market' through security selection or market timing. The most important portfolio decisions revolve around the overall allocation between the various asset classes contained within stocks, bonds and cash. 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.
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15. How do you price your financial planning services? The fees are based on the actual time involved in meeting with you in person or over the phone, researching and analyzing your current situation, and providing specific recommendations and implementation assistance (if appropriate). Hourly rates are $180 per hour for services rendered.
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16. 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 is provided after the Get Acquainted Meeting, when your personal needs are fully identified.
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17. Are your fees tax deductible? Possibly, depending on the level of your adjusted gross income, whether or not you itemize and the amount of your "miscellaneous" expenses. 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.
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18. Once my financial plan is completed, will our relationship end? Absolutely not! Although our current engagement will end, we expect that most of our clients will choose to re-engage our services on an ongoing basis. We encourage our clients to work with us in a similar way that they work with their dentist: come to see us for regular checkups as well as between regular checkups whenever they feel they need to.
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19. How can I get started? The first step is an initial inquiry from you. 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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