Financial Planning Advice
Financial planning is the process of charting the course that takes you from where you are to where you want to go. We help you articulate your goals, examine your current situation, and make realistic projections for the future. Your comprehensive plan will encompass all the areas of your financial life, working together toward attaining your financial and life goals.
We make our investment recommendations based on a range of factors, including your goals, comfort level with investment risk, cash flow needs, and taxes. You will always remain in control, as we do not take possession of your money. You will always know where your investments stand, through regular meetings, proactive recommendations, and quarterly investment reports.
Retirement Planning and Review
Whether you are already retired or plan to work for a few more years, you need a realistic projection of your retirement income to help set expectations for the future. We analyze your projected income sources and expenses in retirement and provide recommendations on everything from Social Security and taxes to IRA distributions and estate plans to help you achieve your desired lifestyle.
Our no-cost, no-obligation meeting will allow you to learn about our services and costs, and help us to get to know you and your financial situation. We will provide you with the information you need to make a decision about working with us.
Let’s move forward together.
Once you have made a decision, we will start the planning process by having you complete our Investment Advisory Agreement and Investment Advisory Questionnaires. These, along with other documents you provide, will help us craft your comprehensive financial plan.
When it comes to your investments, we adhere to the following principles:
Take no more risk than is necessary to accomplish your goals. Tax savings take second place to sound economics in an investment.
- Consider the complete cost before getting into an investment, including commissions, fees, and management expenses.
Investment diversification is key to both growth and capital preservation, especially in today’s uncertain economic environment. In the stock and bond categories, we primarily use a “portfolio” of true no-load mutual funds. Because of our careful selection of mutual funds, our clients, in effect, employ the top investment managers.
In addition to careful selection, we will make ongoing evaluations of each mutual fund in which you are invested. When changes appear advisable, we will notify you and give assistance in making the change. You always maintain control over your investments.
The annual fee for investment advisory services is based on the total dollars for which investment advice is sought. Subsequent annual fees shall be based on the account’s market value at the start of the new fiscal year. The annual fee will be prorated for additions and/or withdrawals (other than planned periodic “living expense” withdrawals).
Investment advisory services (annual charge):
First $1,000,000 = 1%
Next $2,000,000 = .75%
Next $2,000,000 = .50%
Amounts after and above $5,000,000 = .35%
Setup charges (one-time fee): The setup charge is $2,000. It covers the initial analysis, allocation, and setting up of the account in Eclectic’s recordkeeping system. This charge is assessed at the beginning of our work together.
Individual Fixed Income Investments
For individual fixed income investments, such as individual bonds and certificates of deposits, which are planned to be held until maturity, the first year’s fee is as shown above. Subsequent years’ fees are 0.35% of the value of those types of investments. This does not apply to mutual funds since they do not have an expected maturity date. The balance of your investments are billed according to the previously shown fee table.
One-third of the annual investment advisory services fee is payable four months in advance. The setup charge is billed in the beginning and no fee is due upon signing of the agreement. Eclectic will bill you for the amount owed after delivery of the written financial plan.