What is included in a comprehensive financial plan?
Sapphire Wealth Planning will analyze changes on a quarterly basis in net worth, cash flow, investments, income tax projection and the probability of success in meeting your definition of financial independence. Additionally, a complete annual review of your estate plan and all insurance policies is included.
Does Sapphire Wealth Planning uphold the fiduciary standard?
Yes, as a fee-only Certified Financial Planner, we are required by the CFP Board to ensure the client’s interest is put first and foremost. Since financial products are not sold by the firm, we are not influenced by the commissions offered with those products.
What is the difference between a Certified Financial Planner and a Financial Advisor?
A Certified Financial Planner, also known as a CFP, has met the standards set by the CFP Board, whose sole purpose is to promote the fair treatment of consumers. Not only have CFPs passed a rigorous exam to earn the certification, they are also required to have a minimum of a Bachelors degree, completed an additional six course educational program and gained three years of work experience in the financial services industry. Continuing education is also required to maintain the certification.
Anyone can hold themselves out to be a financial advisor, financial consultant or financial planner, regardless of their education or work experience. There is no education requirement or certification process to hold one of the aforementioned titles. As a consumer, you should always ask the professional you are considering to hire about the certifications, licenses and education they have attained.
How are the terms fee-only and fee-based differentiated?
The term fee-only indicates that the professional with whom you work is compensated solely by the fees paid to them by the clients that they serve.
The term fee-based indicates that the professional with whom you work may be compensated with commissions received from financial product companies for the sale of their products, such as insurance policies, annuities, and non-traded REITs, in addition to the fees paid to them by clients.
How is your fee calculated?
There are two components to the fee calculation. First, there is an annual financial planning fee based upon the scope of the project and the amount of time that will be required to maintain the plan. The second component is based on the balance of the assets under management on the last day of the billing quarter.