Frequently Asked Questions

Please tell me about the financial planning process. Financial planning is a multi-step process that provides you with two important things: (1) An in-depth review of your current financial situation, and (2) a plan (similar to a landscape plan one uses to develop a fine garden) that shows you how to achieve your goals and objectives for the future. At Holden Financial Planning (HFP), the financial planning process consists of seven distinct steps (see 7 Steps under Client Forms for details). It is important to remember that financial planning is a  process  . . .  not an event.

How do you create this plan? Together, the client and advisor review goals, objectives, priorities and values.  These typically encompass both financial and non-financial matters.  Even if a client is well-positioned financially, he or she may need professional insight and an unbiased “second-opinion” to stay on track. All HFP engagements begin with data gathering and a review of the client’s current financial situation.  Depending on the scope of the engagement (comprehensive or targeted), specific areas such as cash flow, investments, employee benefits, retirement planning, and insurance are analyzed in order to develop appropriate, customized recommendations.   Planning reports are individually tailored to each client’s unique situation and needs; there are no “canned” financial plans. Finally, to achieve the intended results, you must implement and monitor your plan.
 
Sounds like a lot of work! It may seem like that at first, but the good news is, if you follow the plan and maintain a disciplined approach, you can rest well knowing you can reach your stated goals, just like the planning that goes into a fine garden. Holden Financial Planning tries to make the process as easy as possible for you. In addition to receiving professional advice on your most important financial concerns, implementation and ongoing services are provided, if you wish.
 
Who can benefit most from your services? Any individual seeking financial peace of mind can benefit from HFP's services. The firm serves people at all income levels, from all walks of life. Clients have the flexibility to work on either a One-time, As-needed or an Ongoing basis. HFP welcomes clients who simply need a one-time financial consultation or a second opinion, as well as those who need more comprehensive financial planning and possible ongoing services. In addition, any corporation or organization seeking quality, unbiased financial education for their employees or members can benefit from the financial education programs.
 
What Distinguishes Your Firm from Other Financial Advisors? First and foremost, HFP is a pure fee-only (not “fee-based”) firm, meaning all compensation is received directly from the client.  Referral fees and commissions are not accepted; there are no product-based incentives or conflicts of interest.  Unbiased planning and advice always come first. Furthermore, HFP is fully independent, and has no financial ties to brokerages, insurance companies, and other product providers.  Services rendered are grounded in objectivity and stewardship, and recommendations are based solely on client needs. 
Another distinguishing feature is the fiduciary character of the HFP-client relationship.  Financial advisors are ethically obligated to always work in the client’s best interest, and HFP fully embraces this responsibility, as fiduciary duty is what truly defines a professional. For more information on Fee-Only financial planning, including our Code of Ethics, Fiduciary Code and member requirements, please visit www.NAPFA.org. HFP performs both comprehensive and limited scope engagements.  While each client is strongly encouraged to schedule regular updates, those preferring only an initial assessment, and/or occasional check-ups, are also welcome.  In all cases the client retains full custody and control of his/her portfolio, and is responsible for implementation of advice and recommendations.  Assistance with implementation is available, if needed.
In addition, the firm is a Registered Investment Advisor (RIA); as such, it 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.
 
If You Don’t Sell Products, How Will I Get What I Need? While HFP does not “sell” products, specific recommendations, as-needed, are generally focused on no-load and exchange-traded mutual funds, which can be obtained directly from the provider or a discount brokerage or options available in the client’s retirement/savings plans. Also, you are under no obligation to purchase them.  If more extensive insurance or legal services are required, HFP can assist with locating reputable resources, and with review and implementation of their recommendations.
 
 What types of securities do you provide advice for? The firm provides advice for all types of securities, including mutual funds, exchanged-traded funds, stocks (as they relate to your portfolio holdings), bonds, bank deposits, variable and fixed annuities, limited partnerships and tax shelters. HFP does not recommend specific stocks or individual bonds.  However, if a client owns individual securities, the firm will analyze them in the context of the total portfolio, and offer suggestions for adjustments and diversification, as appropriate.  Additionally the firm can provide Socially Responsible Investments. Advice is provided for mortgages, budgeting and cash flow issues, 401(k), 403(b) and other retirement programs, stock options, life and disability insurance, etc. If it has to do with money and finances, HFP can provide counseling, guidance and/or resources for you. Clients are encouraged to call when they have a major life event, such as a baby, a marriage, divorce, planning to buy a new home or retire. Clients are encouraged to call with more common everyday questions, such as: "How should I invest within my 401(k) or 403(b) plan?" "How can I maximize my Flex Spending Account, Cafeteria Plan or Health Savings Account at work?"
 
Tell me about your investment philosophy. HFP’s approach is to analyze client objectives, risk tolerance, need for income/liquidity, and other special considerations, to construct a diversified portfolio framework providing long-term structure and discipline for the selection of individual investments.  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.  “Time in the market” is emphasized over “timing the market.”  Periodic adjustments are advisable to keep the portfolio in line with asset allocation targets.
 
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. After the Get Acquainted Meeting, when your personal needs are fully identified, an estimate is provided.
 
Are your fees tax deductible? Yes. 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.
 
Once my financial plan is completed, will our relationship end?  Depending on your client track, the actual engagement of services may end, but you may choose our Implementation Service, On-Going Service Program, Periodic Reviews, and Day-to-Day consultation. Financial planning is a process, not an event.
 
How can I get started? The first step is an initial inquiry from you. Call (610) 574-8178 or mail Kathy@Holdenplanning.com. Most clients find the financial planning process to be stimulating and enlightening. The end result, of course, is greater peace of mind.         back to top
                    
 
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