Fiduciary Financial Planner FAQ

FSFP is a state registered investment advisor in Maryland.  Most states recognize a de minimis standard outlined in the Investment Advisers Act of 1940.  In most states, other than Maryland, I can work with up to five families.  If you reside in a state other than Maryland and need planning, please contact us to determine if we can work with you at this time.  If we can't I will gladly refer you to another firm that might be able to help you.

We use two software solutions to support the families we serve including Elements and/or RightCapital.  Depending on the complexity of your plan, FSFP may use either platform or both as needed.  

All of the software solutions used by FSFP are also used by thousands of other financial planners across the country in both smaller firms like mine and national financial services firms.  All of the vendors use industry standard security protocols to keep your data safe.  My family uses all of the tools I provide to my families.  Here is a PDF that explains RightCapital's client account security framework.  The firms I work with all have similar security frameworks.

RightCapital and Elements planning software use Yodlee and Plaid respectively which are both industry leading solutions in the aggregation space.  The value of aggregation and account linking is that this information can be uploaded once and then it will continuously be updated as long as you want.  Here a couple of documents that explain how to link your accounts in RightCapital and then troubleshoot if linking is not working for some accounts.  You do not need to use the aggregation services for me to work with you.  Instead, you can manually enter the data, or I can do it for you for a reasonable fee. 

My comprehensive financial planning process includes: 

• Budgeting & Debt Reduction
• Pre-Retirement & In-Retirement Goal Planning
• Investment analysis & Asset Allocation
• Social Security Optimization
• Education Financial Planning
• Estate Document Review
• Tax Planning

If I can't support your financial planning needs, I will use my industry contacts and resources to find a professional that can help you.  I am interested in making sure you get the help you need, not massaging my ego.

The most common compensation models in the financial services industry are commission (recommending a financial product), or AUM (Assets-Under-Management) based fees.  As a DIY investor myself, I didn't like paying an annual fee for something I could do myself.  Therefore, I charge a one-time or hourly planning fee for simplicity, transparency and fairness for your family and mine.  There are no ongoing fees, subscriptions or other costs beyond my one-time planning fee.  

I have a one-time fee of $5,000 for a financial plan if you use the aggregation solution or you enter your financial data.  If I perform the data entry, I charge $1,000 for that service.  I also provide hourly financial planning help for $300/hour. You can email me john@freestatefp.com for a free 1-hour consultation to review your financial planning needs and whether we would be a good fit to work together.  

Because my families are mostly confident, DIY investors, I can and do provide feedback and recommendations on your allocation and investments.  You will just need to implement them in your own investment accounts. 

I have worked with many investment managers over the years and can make a connection for you.  I can also provide you contact information for newsletters, investment managers and full-service firms that you can evaluate.  I can also provide information on brokerage platforms and can even provide training on how to make a trade, but I will not make the trade for you nor manage your portfolio.

I will not receive a commission or referral fee from them, nor am I vouching for their performance or processes.  I also sit in on the meetings with some clients.  

I am.  As a CFP® professional, at all times when providing Financial Advice to you or any other family, I must act as a fiduciary, and act in your best interests at all times. I must fulfill the following duties:

1. Duty of Loyalty
2. Duty of Care
3. Duty to Follow Client Instructions

Even if you don't choose me to help you, I would always work with a fiduciary and/or CFP® professionals, because they are required to act as a fiduciary at all times.

Loyalty:

As a CFP® professional I must:

1. Place your interests above the interests of me and my firm;
2. Avoid Conflicts of Interest, or fully disclose Material Conflicts of Interest to you, obtain your informed consent, and properly manage the conflict; and
3. Act without regard to my financial, my firm's or other interests, or any individual or entity other than you, which means that I have a continuing duty to act in your best interests and place your interests above mine.

Care:

As a CFP® professional I must act with the care, skill, prudence, and diligence that a prudent professional would exercise in light of your goals, risk tolerance, objectives, and financial and personal circumstances. 

Follow Instructions:

As a CFP® professional I must comply with all objectives, policies, restrictions, and other terms of our agreement and all your reasonable and lawful directions.