Common Questions

Who needs a financial advisor?

Some persons have the temperament and training necessary to be their own financial work, especially those who work in finance-related fields. The person who has time to stay abreast of financial issues, strategies, and changing laws may effectively be his own financial planner.

Others reason, I don’t have time to take care of the needs money can’t buy – physical fitness, spousal relationships, demands of parenting, spiritual needs – so it would be unwise to give time to the tasks money can buy. A characteristic of Baby Boomers is that they consider time to be their most valuable asset and they outsource as many tasks as possible. These persons find it efficient to involve a financial professional in their lives, not because they lack financial acumen, but because they prefer to commit their time to other areas.

Many persons rely on a financial advisor because they find it difficult to understand the complexities of modern financial markets and laws. Others are unable to be objective because they find it difficult to remove emotion from financial decisions. With about 1,800 finance sites in the internet, many people feel overwhelmed trying to sift through so much information.

An individual’s financial picture influences whether a financial advisor is needed. As income and net worth increase, financial issues that were simple become complicated; tax considerations begin playing an increasingly significant role in financial decisions, protecting assets becomes an issue, and guarding the estate from erosion at death becomes a concern.

What is the profile of an average CFA client?

Generally, if a CFA client(s) is a married couple, one or both spouses work in a professional field with one spouse, if not both, in management. If the client is single, he or she is probably in a white-collar job. The client invests before coming to CFA, but often feels his investments are disjointed, and he or she controls consumer spending. Mr. Copelin’s often-repeated comment about CFA’s clients is, “We have the best clients in the world and they’re all very bright.”

How is CFA compensated?

There is no charge for the initial appointment; if the decision is made to proceed, a fee is charged for designing and producing a Financial Plan. Most investments used pay an annual fee to CFA, usually a percentage of the amount invested. Some financial instruments pay a one-time commission to CFA and in that case no additional fee is accessed to the client. In the monitoring process, the employer-sponsored retirement plan is included in order for the investments to demonstrate a common agenda; for that service and for periodic review conferences there are no additional fees. Client’s generally prefer an annual fee, accessed from the investment account, because fees are tax deductible (commissions are not) and because they believe advice is more objective.