What is Financial Planning?
| Financial advisors and financial planners help
you develop a comprehensive and integrated financial plan that
incorporates elements of both insurance and investments, tailored to
your individual needs. |
 Financial advisors, financial planners and financial consultants
can be a great help in the financial planning process. Just as we seek
assistance in legal matters, with our health or even travel arrangements, we
need the counsel of financial advisors, financial planners or financial
consultants with our financial plans. Financial specialists also offer
assistance, analysis and advice on
insurance matters
as they relate to our life, health and long term care needs. They help
ensure that our family will be able to survive the catastrophic loss of the
head of the household, or the cost of medical treatment for serious injury
or long term illness. Financial planners help you feel confident that you
are neither under-insured nor over-insured.
The old stereotypical stockbroker later called a financial advisor
‘advised’ on which specific stocks and bonds to buy to attain your goals. He
earned his income on a transactional basis every time you bought or sold a
position. His motivation to offer mutual funds was often tempered by the
fact that he earned lower revenue from clients who purchased them, then
exchanged or transferred funds within a ‘fund family’ with little or no
compensation for the broker. Most brokerage houses and banks had (and still have) their own ‘fund family’
their brokers are expected to promote, regardless of the availability of
potentially more suitable funds outside the company.
These same financial advisors would often sell life and health insurance,
again through carriers working closely with their brokerage. Sometimes the
insurance carrier would even own the brokerage outright. Do you think this
advisor was acting in the interests of the client? Or was their advice
colored by the interests of the company or
themselves?
Financial Planners tend to offer advice only and often refuse involvement
with the actual investment process. They may feel it's outside the realm of
their profession to actually execute the plans they offer, or prefer to
remain free of any conflict of interest in earning additional income by
actually implementing the purchases or sales they recommend.
This may be the greatest difference among all these similar terms, brokers,
financial advisors, financial planners and consultants. Financial
consultants, especially those with independent broker/dealers can shop
competitively to find the best option for you. They are
investment professionals, able to charge for advice like a financial planner
on a fee basis. For example, if you prefer to purchase a written financial
plan on its own, you can pay a set fee and implement the plan on your own.
Or they can charge for individual transactions with an eye toward
enhancing your returns and satisfaction with personalized service over time.
The financial plan is often an integral part of this relationship, though
there may be no itemized charge for it.
Lastly there is a ‘wrap account’ which enables you to own funds, stocks
and bonds without paying the traditional transaction fees. An annual fee
based on the assets under management and expected activity is assessed on a
quarterly basis and reviewed each year. Generally as the account increases
in value, the percentage fee is reduced. It tends to make clients more
comfortable with transactions since they don’t have to pay for them
á la
carte and they know what to expect on a quarterly basis.
 Frank McKinley enjoys the ability to choose whichever arrangement suits
you best. He also relies heavily on referrals you provide
him. So there is an opportunity on each side to serve the other. He must
take good care of you as a client to ensure the growth of his practice through
referrals you provide.
Since the client’s financial situation is known to their consultant and
goals are understood, he is able to shop around for the best suited
insurance coverage. There is no allegiance to
any one company and no quota from a sales manager influencing what is
finally presented to you. It’s all part of the financial plan that addresses
your changing needs as they evolve, as your family or business grows, and as
your asset base increases.
Whether your interests are served by a basic term or cash value life
insurance policy, a specialized business arrangement, group or individual
health or disability
insurance, or Long Term
Care Coverage, Frank McKinley in New Jersey can help. It’s all part of
the financial planning process.
Frank McKinley is a registered representative and financial consultant
working mainly in New Jersey through
Cadaret Grant & Co., Inc.
an independent securities broker/dealer. He is also an independent life and
health insurance agent with the Cadaret Grant Agency. Due to the
independence offered by this relationship, he is able to put you first in his practice as your financial consultant.
Contact Frank McKinley today and put him to work for you. |
