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Q: I see you are an SEC Registered Investment Advisory (RIA) Firm. What does that mean to me?
A: A registered investment advisor (RIA) is an entity, registered with the state or the Securities and Exchange Commission (SEC), who gives investment advice and manages investments for others. An RIA gives that investment advice for a fee and may also collect fees for managing investment portfolios and assisting in financial planning that includes investments. Some of our clients grant us discretionary authority for the management of their investments. But, this isn’t required.
Q: OK. I understand the concept of the RIA… but your website says that you are an independent Registered Investment Advisor with an affiliation to AIG Financial Advisors—isn’t that a conflict?
A: Not in the least. We provide financial advice, planning, The Abundant Lifestyle Approach™ and asset management (if requested by our clients) as a registered investment advisor.
Q: You have mentioned The Abundant Lifestyle Approach™. What is it and how can it help me?
A: The Abundant Lifestyle Approach™ is a financial planning program we designed to help increase financial independence, personal growth and to allow you to achieve your life goals. In our media driven world, most people are consumed by picking the hot stock or chasing the latest trend. Even for those who are disciplined enough not to follow the thundering herd, most neglect to focus on the three main areas of concern in attaining financial independence: increasing income over time (to keep up with rising prices of living), preservation of wealth already created and protection from catastrophe. So our approach allows you to focus on your core values—to Ullmann Financial, it is all about the process.
Q: What would we discuss at our first meeting and what should I bring with me in terms of documentation?
A: Our first meeting with you is complimentary. We will normally spend about 90 minutes together getting to know one another and explaining in detail how our process is conducted. You don’t need to bring any financial information. Instead, we want you to focus on some core issues: (1) Personal and professional goals (2) The risks to achieving those goals (3) The opportunities you’re excited about (4) The strengths you can leverage to achieve your goals
Q: OK, so we talk about these core issues, then what?
A: We then get some more detailed information and provide you with a Required Document List. We also provide you with our Privacy Agreement and our Form ADV which is the disclosure document that we file annually with the Securities and Exchange Commission (SEC). Oftentimes we will go over the outlines of our sample Financial Plan which we call The Abundant Life Planner™. Finally, we go over in detail our Financial Planning Agreement which outlines our services, responsibilities, conditions and fees.
Q: What would the next step be to proceed further in the process?
A: After signing the financial planning agreement and providing us with all of the required documents, we will begin work on The Abundant Life Planner™. Normally it takes us at least four weeks to create the Plan and schedule you for a second appointment. The second appointment will take a minimum of 90 minutes and will cover all aspects of accomplishing your goals, capitalizing on your strengths and opportunities and mitigating your dangers. This time together is very detail oriented and intense and we know you will have questions afterwards. So, we schedule our third meeting within 2-4 weeks to enable us to refine the Plan and continue to answer any questions.
Q: When do you bill me for my financial planning fee?
A: We only send an invoice after the third meeting. We feel it is essential to create and demonstrate the highest value in the process before sending a bill. After three meetings, you should have tremendous clarity as to both the plan, structure and how to accomplish your goals.
Q: Can I keep my current investment broker or do the investments myself?
A: We do not require clients to have Ullmann Financial manage their liquid assets. The Abundant Life Planner™ provides specific asset and investment solutions with no bias about where the products are purchased/invested. Ullmann Financial is bound by our fiduciary duty to either work with your existing broker and help implement the plan or if you choose, to implement it within our structure. About seventy percent of the time, clients tell us that through the course of our process we get know them better than anyone else in terms of their financial resources and goals, and ask as us to manage their assets as well.
Q: There are so many firms like this one. Why would I chose Ullmann Financial over another firm?
A: There are other firms that may look like ours in terms of promising to provide financial planning, but we feel that our process is unique. People choose to work with us because (1) We are independent—placing your interests above all others is our primary obligation, (2) We know that planning is not a one time thing but involves continuous monitoring, subtle changes, rebalancing to keep within the plan parameters, and the involvement of and coordination with your other advisors (insurance agent, attorney, CPA).
Q: If I decided that I liked the way I was treated here and wanted to refer a friend or family member, what would I need to do?
A: Our ideal client is looking to have a partnership with us to accomplish their life goals. They know that although they are smart enough to do everything themselves, they need and desire help defining their goals, creating a structure and ultimately help in implementing the plan. Our ideal client is willing to pay for the ultimate advantage of having ongoing, specific advice tailored to their needs—advice that should ultimately help increase their wealth, save money on taxes and reduce/prevent big errors in judgment. Please go to Tell A Friend to spread the word!
Q: I don’t want to be pressured into making financial decisions that don’t work for me. What safeguards are in place to help protect me from losing control of my money?
A: Our practice is predicated on mutual trust, advice and continual education. In terms of investment management, we do NOT believe in discretionary authority. Simply put, you control the investment accounts because we cannot/won’t make any changes without your explicit consent and agreement.
Q: I am a novice investor and know little about retirement planning or asset management. Can Ullmann Financial point me to resources so I can teach myself about this?
A: The first two books we would recommend are the ones we wrote. The first is Landing a Smooth Retirement and the second is In-Flight Guide to protecting yourself from identity theft. One of the best books recently on economic history in the U.S. is Alan Greenspan’s book The Age of Turbulence. A great resource on the subject of globalization is Tom Friedman’s book The World is Flat. As new resources become available, we will add them here.
Q: I am interested in investing for retirement but afraid of losing my money in a shaky market. What can Ullmann Financial do to help protect me?
A: Losing our money is always a concern for all investors. However, there are two risks that we need to plan for—the reduction of our funds as a result of market volatility is one and the loss of purchasing power as prices go up is another (inflation). Please see our recent article entitled “A Dose of Reality” on this important subject. Please note that investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
Q: Can I bring a friend or family member to our meetings to help me remember questions I have or to take notes?
A: We want our clients to have the best possible experience and feel as confident as possible. We encourage you to bring a friend or family member, attorney, CPA or any other trusted person that may help you to feel more secure.
Q: I am a fairly savvy investor and know what I want and don’t want. Why wouldn’t I just manage my own assets?
A: We have lots of clients who are sophisticated investors and who have managed their own assets for years. Although an experienced investor may be initially skeptical of what we can do to help them, we feel that after experiencing The Abundant Lifestyle Approach™, these experienced investors can benefit from (1) communication of the plan to a less sophisticated spouse (2) creation of an asset allocation that reduces volatility/risk (3) focusing attention and resources on increasing income over time, preserving wealth and protecting from catastrophe (4) moving the estate planning process forward based on changes in the tax code.
Q: I don’t have the time or the interest to pour over complicated financial statements and make heads or tails of them. Are their people in your firm that could help me?
A: The fourth step of The Abundant Lifestyle Approach™ is dedicated to explaining financial statements and furthering education. In addition, at every review, we explain your statements, review performance and profess towards annual goals. In addition, we create the Financial Progress Report which consolidates account information onto one easily understood page.
Q: What is stopping me from taking a financial plan you develop for me over to someone else to implement?
A: Nothing. You are able to implement your financial plan anywhere. It is our job to coordinate with your broker or help you if you self manage the accounts. We feel that there may be drawbacks to not having the plan and the investments managed by Ullmann Financial (such as timeliness of rebalancing, tax issues, etc.).
Q: My parents are getting older and need financial support from me and my spouse. How are we going to pay for our kids’ college, our retirement and support them too?
A: This is all part of the planning process. What’s important to you, what strengths do you bring to the process, what opportunities do you see and dangers and obstacles in your way.
Q: Are there any guarantees for a rate of return?
A: There are many benchmarks for success, and rate of return is one of them. We assist you in finding total value in your investments by making sure you also have clarity, confidence in your investments and provide direction for the future. Of course, keep in mind that investing involves risk including the potential loss of principal and no investment strategy can guarantee a profit or protect against loss in periods of declining values.
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