Questions To Ask…When Choosing a Financial Planner

To help you evaluate which financial services provider is best suited to your needs, the Certified Financial Planner (CFP®) Board of Standards developed 10 of the following questions. Wall Street Journal writer, Jason Zweig, wrote about 19 questions to ask. I’ve combined them here along with my answers.      (Sources noted at the end.)

What experience do you have? What are your qualifications?

Since 2006, I’ve helped clients build wealth and achieve what’s important to them through planning and management of their investments.  Avea Financial Planning, LLC is a Registered Investment Advisory firm (RIA) in the state of Washington, established in 2017.  In 2011 I earned the distinction of the professional designation, Certified Financial Planner™ Pro (CFP®) which is recognized as the highest standard in personal financial planning with expertise in the areas of taxes, insurance, estate planning and retirement.  This is only achieved after obtaining a bachelor’s degree and specialized training in financial planning, passing a 2-day examination, completing annual ethics training, and having 6000 hours of professional work experience.  Continuing education is required to retain the designation.

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Can you tell me about your conflicts of interest, verbally and in writing?

Yes, there are conflicts in any engagement.  It is my job as a fiduciary to be fair and disclose any that I might identify. One conflict is that I might get paid more for managing more of your assets.

What services do you offer?

My service centers around ongoing comprehensive planning with investment management.  I advise on retirement, taxes, estates, budgeting, debt, insurance, college, career and more.

Are you always a fiduciary and will you state that in writing?  

Yes. Fiduciaries are required to act in the best interests of their clients when providing financial advice — even if those interests are in conflict with their own. It's a legal and ethical distinction that holds financial planners to the highest standard of care. Broker-dealers, stockbrokers and insurance agents are typically not held to a fiduciary standard even though they are providing you advice. Not all financial advice is created equal. You deserve fiduciary advice. This is your money and your life you are talking about. Here is my written fiduciary oath.

What types of clients do you typically work with?

I focus my work in Pasco, Kennewick and Richland, better known as the Tri-Cities, in Southeastern Washington State. I also serve the surrounding communities of Benton and Franklin counties, Yakima, North Franklin county, the Palouse, Walla Walla and Eastern Oregon.

However, I use Zoom video conference software to meet virtually with clients from around the globe. Distance does not need to be a deal-breaker for our relationship.

I focus my work with women, many in STEM and education careers and Hanford Site pre-retirees to help them through life’s transitions like career change, retirement, widowhood, inheritance, divorce or sending a kid to college.

My clients are often women, and if married, joined by their spouses, who are in their 50s, 60s and 70s, in pre-retirement or retirement. I specialize in pre-retirees, recently divorced or widowed women. Many of my clients are dual income families with professional jobs related to the Hanford Nuclear Site or education, with household income in the range of $125,000-$250,000+ and a net worth of approximately $1,000,000 - $5,000,000.

We work alot with employees associated with the Hanford cleanup mission, vitrification plant and the Department of Energy National Labs:

  • Department of Energy Richland WA (DOE-RL) 
  • Pacific Northwest National Laboratory (PNNL) and the United States Department of Energy National Laboratories and Technology Centers
  • Bechtel National, Inc. (BNI)
  • Washington River Protection Solutions LLC (WRPS)
  • Mission Support Alliance (MSA)
  • CH2M HILL Plateau Remediation Company (CHPRC)
  • HPM Corporation (HPMC)
  • Wastren Advantage, Inc. (WAI)
  • Aecom Management Services
  • Fluor Federal Services
  • Atkins Nuclear Secured
  • Leidos Integrated Technology
  • Parsons Government Services
  • Hanford Mission Integration Solutions
  • Hanford Mission Essential Services Contract
What is your approach to financial planning?

First, I get to know you, where you are today, your values and what important to you. We’ll develop your personal goals.  I’ll collect a lot of information and documents then spend time evaluating and clarifying this information. Next, I’ll make recommendations and prioritized action items.  Over time, we work on completing the recommendations, check in with each other and monitor progress.

We offer one primary service, Portfolio Management with Ongoing Comprehensive Financial Planning. 

For Portfolio Management with Ongoing Comprehensive Financial Planning clients, we meet 3 times right at the beginning then approximately every other month for the first year. In subsequent years we meet approximately 3 times a year.

How will I pay for services?

I believe in complete transparency when it comes to fees.  When a client engages Avea Financial Planning, we complete our client agreement and it states the services and fees.

Avea Financial Planning is paid a fixed fee for creating your personalized plan and for any assets managed. There will be a fee tied to the balance of assets when they are brought over or on a certain date, usually Nov 30th.  From that balance, we will determine a fixed annual fee that will be divided by 4 and paid quarterly in the following year.

Clients typically pay by check, ACH or direct debit from managed investment accounts.  The fixed fee will be adjusted for complicating factors, if there is a large deposit or withdrawal during the year. There is an annual cost of living fee increase of approximately 2%.

This arrangement is unique to Avea, so if this is unclear, please ask. (See current ADV Part 2 Brochure for details.)

What is your investment philosophy?

I believe in a globally diversified, disciplined, low-cost investment approach designed to capture, not beat, market returns over a long period of time.

Do you believe you can beat the market?

No. The cards are stacked against small investors who think they can beat the market.  We aim to get what the market gives and control what we can in other areas of our life like the portfolio allocation, spending, debt, risks and income.

How often do you trade?

We trade to add or withdraw money from an account and on an infrequent basis to rebalance.

Do you believe in tactical analysis or market timing? 

Marketing timing, attempted by an emotional, irrational human being? No, I do not believe in that.  However, in recent years, tactical, rules-based strategies emphasizing different factors like momentum or value, have been getting easier to implement. I find this strategy compelling not only for the possibility of higher returns through full market cycles (however, one can never predict future returns), the strategy may minimize risk or drawdowns which I think is worth considering for a portion of a portfolio.

How much do you typically charge?

I will propose a program and fee based on the scope of the work and your investment management needs. We reserve the right to quote a fee that is higher if the planning situation necessitates it.

A typical comprehensive planning engagement is based upon a minimum of 10-25 hours of time for either the six-month or ongoing program.

There is a minimum $500 fee to start.

Then for Portfolio Management with On-Going Comprehensive Financial Planning, the fee starts at $4,500 annually, depending on asset level and complexity, billed quarterly.  Asset management is included in that fee. We meet 6-9 times the first year, then about 3 thereafter.

Please see current  ADV Part 2 Brochure for fees.

Who manages your money?

I manage my household’s money.  I’ve been an account holder primarily at Vanguard since I started investing because of their low expense ratios and broad diversification.  My client’s accounts are held at TD Ameritrade and managed either by myself or a third-party manager, First Ascent, where we deploy elegantly simple, low-cost, globally diversified portfolios, oftentimes utlizing Vanguard ETFs.

Will you be the only person working with me?

Yes, I am currently a solo practitioner. As the leader of your family’s financial life, a key distinguishing part of my service is the coordination of your existing team of professionals to make sure no stone is left unturned and important items got completed.  When needed, I will recommend professionals qualified to assist you in areas such as real estate, law or accounting.

Could anyone besides me benefit from your recommendations?  Does anybody else ever pay you to advise me and, if so, do you earn more to recommend certain products or services?  Do you pay referral fees to generate new clients?  Do you earn fees for referring clients to specialists like estate attorneys or insurance agents? Do you earn fees as adviser to a private fund or other investments that you may recommend to clients?  Do you participate in any sales contests or award programs creating incentives to favor particular vendors?   

All no.

Have you ever been publicly disciplined for any unlawful or unethical actions in your professional career?

I maintain a clear record, void of any disciplinary actions.  You can check the background of any individual (Angela Furubotten-LaRosee, CRD#: 5967349) or firm (Avea Financial Planning, LLC, CRD#: 288702) by typing in the name on this website - https://brokercheck.finra.orgClick here to see current info. Or call BrokerCheck Help Line (800) 289-9999.

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Can I have it in writing?

Absolutely.  In fact, I insist.  Prior to any engagement, it a requirement that both my clients and I sign a client agreement that outlines the services to be provided along with the fees and timeline.  Furthermore, I provide all prospective clients with my most recent Form ADV Part II, which is my client disclosure document filed with Washington State.  This is a complete description of my services, fee schedule, & background.  My ADV is available at the bottom of every page online at www.AveaFP.com and is updated yearly. You may also find it here.

Sources:

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