Our service is appropriate for individuals and families looking for an integrated approach to their financial planning and investment management. During the review of your financial plan, we will address the following areas of financial planning:
Goal Setting – The first objective in the planning process is for us, together, to identify your personal goals and objectives, so that we can better understand how your primary assets - your time and your finances - can be organized to achieve these goals. What do you want to happen, personally and financially, and in what time frame?
Review and Analysis of Cash Flow & Net Worth Assessment - I will review and analyze your current spending patterns and prepare an analysis which highlights current cash inflows and outflows. Together we will determine the level of discretionary income available for investment or other uses. The cash flow work would help us with long-term planning by providing a baseline with which to estimate your future spending needs. We would also assess your current financial circumstances through a personal net worth statement that lists your assets and liabilities.
Financial Independence Planning – This would involve exploring the age at which you wish to "retire" and the lifestyle you wish to enjoy during retirement. I will prepare an analysis to determine what amount of investments and additional savings are necessary to achieve your goals. Social Security projections and pension income will be incorporated into the analysis. I will generate long-term financial projections to help you see how various financial decisions might affect your ability to fund your long-term goals. Where helpful, we would develop scenarios to help analyze how best to achieve your goals and any tradeoffs that might need to be made among them.
Current Portfolio Review – We will focus on understanding your risk profile and the expected returns of your current portfolio, including all taxable and tax-deferred accounts. We would discuss investment strategies in order to help you understand which strategy may be best suited for your needs and risk preferences.
Tax Planning – We would address whether you are taking full advantage of opportunities to minimize your federal and state income tax liabilities. If I have sufficient information regarding your personal tax situation, I will prepare an annual income tax projection for the current tax year to estimate your expected liability or refund based upon projected income during the tax year. I will make recommendations to adjust your withholding or make estimated tax payments as necessary.
Insurance Review – We would address whether you have adequate life, disability, and long-term-care insurance. I would also review your property & casualty insurance to determine whether you have adequate coverage. I will review your current insurance policies and make suggestions regarding the appropriateness of your coverage in meeting your current goals and objectives. I will make recommendations to insurance agents who specialize in the areas mentioned.
Estate Planning – I will review your existing estate planning documents (wills, trusts and powers of attorney) to ensure that they reflect your wishes and determine the need, if any, for any additional estate planning action. I will make recommendations regarding attorneys who specialize in drafting estate planning documents.
Stock Option Planning (if applicable) – I will assist you with decisions regarding your employee stock options so that they complement your overall financial plan. I will review your specific stock option grants (both incentive and nonqualified stock options) in light of your personal financial situation, including your federal and state marginal tax brackets, net worth, personal objectives, risk tolerance and need for cash. I will consider external factors, such as interest rates (i.e., opportunity costs) and the prospects for an increase in value of your company's stock.
Education Funding Analysis (if applicable) – I will prepare an analysis to determine what amount should be set aside to fund the education you desire for your children or grandchildren. I will explore financial aid possibilities. Additionally, I will present your alternatives for savings vehicles and help select the most appropriate vehicles given your specific needs.
Other Services As Needed - I will be available for consultation on major purchases and/or the refinancing of mortgages.
We will review your financial plan over the course of two 2-1/2 hour meetings. The fee for the initial plan is based upon the complexity of your individual situation and the amount of time expected to be involved in gathering the data, preparing the plan, and presenting the financial plan. The fee may be tax deductible.*
Typical Fee Range:
$4,000 - $6,000 +
* Please note: Investment fees and expenses are classified as "miscellaneous itemized deductions" and subject to a 2% limit of a taxpayer's adjusted gross income.
A TYPICAL ENGAGEMENT:
1. Initial Inquiry
2. Prior to the Initial Consultation
Please complete the Confidential Questionnaire
3. Initial Consultation
This session is an opportunity for us to exchange information about your goals and objectives and further discuss our services to determine if they may be appropriate for you. The initial consultation typically takes approximately forty-five minutes. Following our meeting, we will provide you with a proposal and "Consulting and Compensation Agreement" that will include a summary of services to be rendered and the fee for services. This will be sent via e-mail within five (5) business days.
4. Data Gathering
Upon receipt of the signed agreement and deposit, AFA, LLC will e-mail you a list of outstanding information required. You will also receive an e-mail directly from FinaMetrica, an online risk profiling system, which will provide you with logon information to take the 25 question risk tolerance questionnaire. Once we receive all of the requested information and the risk profile is completed, we will begin to review and develop your financial plan. We may contact you to clarify some of the information. Once we have all of the required information from you, we will schedule three appointments, approximately eight to ten weeks later. The appointments should be scheduled approximately one (1) month apart, preferably in the mornings given the level of detail and complexity involved in the plan.
5. Analysis and Plan Formulation
We will develop your plan with all of the information you have provided. Once we conclude our research and analysis and produce the final plan with our observations and recommendations, we will meet to review the plan in its entirety.
6. Presentation Meetings
We will schedule three meetings, typically held eight to ten weeks after receipt of all of the requested information. Over the course of the first two meetings, we will present and review the financial plan that has been prepared. During the third meeting, we will review an investment policy statement and specific recommendations for your investment portfolio. Full payment of the balance for actual fees incurred is due at the conclusion of our third presentation meeting.
7. Implementation and Follow-up
Proper implementation is crucial to achieving your financial goals. Aznar Financial Advisors, LLC is actively involved in the implementation of all of the financial planning recommendations. The retainer relationship involves ongoing coordinated financial planning and investment advisory services. We will actively monitor your investment portfolio over the course of the year, assisting with implementation, rebalancing when necessary, harvesting tax losses as appropriate, investment of additional cash as it comes available, and adjustments over time as your personal situation evolves. We will meet in person two times per year to review your financial planning needs and investment portfolio.
Please click here to learn more about the benefits of being a retainer client.
The fee for Retainer clients, to be billed quarterly, is based on a percentage of the total investable assets as of December 31st of the previous year.