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Q: Why should I hire a financial planner?

A: A financial planner can assemble all of the financial elements in order to provide you with a financial plan to meet your financial goals. He or she should have training and experience in all kinds of financial products in areas such as; Wealth Management, Preserving Wealth, Retirement Planning, Providing for your Family. Estate Management, Growing Your Business.

Q: How much does a financial planner cost?

A: Fees vary relative to factors such as an advisor's education and experience level, depending on how fees are assessed.  Financial planners will charge in one of two ways: commission or fee-only. A commission plan will be based on a specified percentage of each transaction or asset being managed. A fee-only plan will typically charge an hourly rate or a specified amount for the services provided.

Q: What are Financial Planner Certifications?

A: The most common certifications are Certified Financial Planner, Chartered Financial Consultant, and Registered Investment Advisor.

  • CERTIFIED FINANCIAL PLANNER™ certification is the standard of excellence in financial planning. CFP® professionals meet rigorous education, training, and ethical standards, and are committed to serving their clients' best interests today to prepare them for a more secure tomorrow.

  • CHARTERED  FINANCIAL CONSULTANT (ChFC) The ChFC certification, is administered and rewarded by the American College of Financial Services. Requirements for the ChFC certification program involve a must-have list of requirements for financial advisors, from knowledge on tax and retirement planning to special needs advising, wealth management, insurance, and more.

  • REGISTERED INVESTMENT ADVISOR (RIA) A registered investment advisor (RIA) is any person or firm that advises clients on investments and manages their portfolios and is registered with the U.S. Securities and Exchange Commission (SEC) or a state securities authority

Q: What is Asset Allocation?

A: The placement of a certain amount of one's investment capital within different types of asset classes (e.g., 50% stock, 30% bonds, and 20% cash).

Q: What is an Automatic Investment Plan (AIP)

A: An arrangement where investors have money withdrawn periodically from their bank account to purchase shares of stock or a mutual fund.

Q: What is a Bear Market

A: The term used to describe a prolonged period of declining stock prices.

Q: What is a Bull Market

A: The term used to describe a prolonged period of rising stock prices.

Q: What is Cash Investments (a.k.a., "Cash Equivalents")

A: Highly liquid securities that are appropriate for emergency savings and short-term financial goals (e.g., money market funds and savings accounts).

Q: What is the Consumer Price Index (CPI)

A: The Consumer Price Index (CPI) is a measure of inflation used by the U.S. Bureau of Labor Statistics. Changes in the price of more than 300 goods and services are tracked and recorded.

Q: What is Core Holding

A: ​The foundation of a portfolio (e.g., a stock index fund) to which an investor might add additional securities.

Q: What is an Index Fund

A: A type of mutual fund that aims to match a particular stock or bond index by investing in the securities found in the index.

Q: What is a "Junk" Bond

A: Also called high-yield bonds, they are high-risk bonds (rated less than BBB) that are offered by issuers with low bond ratings and, therefore, have a greater chance of default.

Q: What is Laddering

A: Creating a CD or bond portfolio with a combination of assets with different maturity dates. As each bond or CD matures, the proceeds are reinvested at the longest time interval to maintain the ladder.

Q: What is a Net Asset Value (NAV)

A: The market value of a mutual fund's total assets, after deducting fund liabilities, divided by the number of shares outstanding. NAV is the price per share of a fund.

Q: What is a No-Load Fund

A: A mutual fund that requires no up-front or marketing fees to purchase shares.

Q: What is The Time Value of Money

A: ​​The fact that a dollar received today is not worth the same as a dollar received at a previous or future time period, due to the interest that can be earned on the money.

Q: What is Triple Witching Day

A: The third Friday of March, June, September, and December when contracts for stock index futures, stock index options, and stock options all expire and financial markets tend to be particularly volatile.​​

Q: What is a Turnover Rate

A: The percentage of mutual fund holdings that have changed in a year. The higher the turnover rate (e.g., 100% vs. 20%), the higher a fund's transaction costs and taxable gains.

Q: What is a Zero-Coupon Bond

A: A corporate, municipal, or Treasury bond that originally sells at a deep discount from its face value (generally $1,000) and whose value increases annually until maturity.

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