FINANCIAL PLANNING SERVICES
Effective management of financial affairs requires extensive knowledge, organization, and constant vigilance. Our firm includes Certified Financial Planners, Chartered Financial Consultants, Registered Reps and Insurance Professionals who provide a complete range of consulting and advisory services to help with the complexities of financial planning. We truly care about our clients and strive to form lasting relationships with each of them providing beneficial information, access to a wealth of resources, and a proactive approach in serving each client's needs.
WHAT IS A CERTIFIED FINANCIAL PLANNER (CFP)
An investment professional with credentials awarded by Certified Financial Planner Board of Standards, Inc. Certification is awarded to those individuals who meet education, examination, experience and ethics requirements.
CFP professionals must also have 30 hours of continuing education every 2 years and agree to abide by the CFP Code of Ethics to renew their right to use the designation annually.
WHAT IS A CHARTERED FINANCIAL CONSULTANT (CHFC)
A designation awarded by the American College of Bryn Mawr, Pennsylvania, that denotes an individual has passed a four-year program that consists of examinations covering investments, insurance, taxation, economics, finance and other related areas.
ANNUITIES
An annuity is different from most other retirement savings vehicles. It is an investment contract offered by an insurance company. In return for making one or more premium payments, the insurance company agrees to provide you with an income stream - usually during retirement. You can elect to receive payment all at once or as a series of payments, even for the rest of your life. Income payments are based on the claims paying ability of the issuing insurance company.
WHY OWN AN ANNUITY?
You may want to consider investing in an annuity as part of your long-term financial plan if:
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You're in a higher tax bracket, and want to defer additional income.
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You've reached your deductible limit on all your retirement accounts and wish to save more for retirement.
BROKERAGE ACCOUNTS
To buy and sell securities through a broker-dealer or other financial services firm, you establish an account, generally known as a brokerage account, with that firm.
In a traditional full-service brokerage firm, a registered representative or account executive that works for the firm handles your buy and sell instructions and often provides investment advice. If your account is with a discount firm, you are more likely to give your orders to the person who answers the telephone when you call. And, if your account is with an online firm, you give orders and get confirmations electronically.
In all three cases, the firm provides updated information on your investment activity and portfolio value, and handles the required paperwork. And, in some cases, your brokerage account may be part of a larger package of financial services known as an asset management account.
CLOSED-END FUNDS
Similar to a mutual
fund, a closed-end fund has assets that are professionally managed and may be
invested in stocks, bonds or a combination of both. A closed-end fund also has
a net asset value (NAV) price per share that measures the current value of the
securities in the portfolio and changes as the total value of the underlying
assets changes.
Comparable to a stock, shares of a closed-end fund are traded on a stock
exchange and bought and sold at a fluctuating market price that can be lower or
higher than the original investment.
EDUCATION SAVINGS ACCOUNT
A systematic investment plan designed to allow you to accumulate the necessary funds to use for education expenses. Contribution limits may apply.
EXCHANGE-TRADED FUNDS
With an Exchange-Traded
Fund (ETF) you get the trading flexibility of a stock, with the diversification
of an index mutual fund. An ETF is an index mutual fund. An ETF is an index-tracking
fund that is traded like an individual stock on an exchange, enabling it be
bought and sold at any time during market hours. Today, there are more than 80
passively managed ETFs that trade primarily on the American Stock Exchange.
Exchange-Traded Funds are subject to investment risks, including the possible loss of the principal amount invested. Indexes assume reinvestment of all distributions and do not take into account brokerage commissions or other costs. It is not possible to invest directly into an index
INVESTMENT MANAGEMENT
A disciplined consultative process to create customized, actively managed portfolios that help you meet your individual investment objectives while at the same time manage risk. We create a strategic asset allocation your optimal combination of stocks, bonds, cash, and more specialized investments to provide growth and income at a level of risk you feel comfortable with.
IRAS
An Individual Retirement Account provides either a tax-deferred or tax-free way of saving for retirement. There are many different types of accounts within the world of IRAs, depending on the financial goals and situations of each individual, though traditional and Roth IRAs are the most common choices.
A traditional IRA allows tax-deductible contributions of up to $4,000 per year, or more if you are over age 50. Whatever you contribute towards your IRA comes off your yearly income, thereby reducing total tax liability. However, once the money in an IRA is withdrawn, it is subject to standard income taxes and an additional 10% penalty if withdrawn before the age of 59
1/2. An exception is made if the money is used for purchasing a house or to cover approved higher education costs. Standard income tax still applies, but the ten percent penalty is waived. This provides a great investment tool with flexibility for important purchases.
Roth IRAs were created in 1997 to help middle-class Americans. These IRAs are not tax-deductible, but provide even greater flexibility than traditional IRAs. Contributions to the account can be withdrawn at any time without being subject to penalty or tax, though interest earned in the account is. After five years, both contributions and earnings in the account can be withdrawn without penalty or taxation. The same benefits concerning education and housing also apply as with the traditional IRA.
MARGIN ACCOUNTS
A margin account gives the customer the opportunity to borrow against the equity in an account to purchase additional securities or make a cash withdrawal. Margin is often a convenient way to meet your shorter-term financial goals by using securities in your portfolio as collateral. You can use a margin loan to purchase additional investments, or you can use the cash from the loan for other purposes outside of your brokerage accounts.
MONEY MARKETS
Money market securities are very short-term (less than 13 months), highly liquid debt securities such as certificates of deposits, U.S. Treasury bills, and commercial paper, that trade in amounts often too large for an individual investor to purchase directly.
The easiest way for you to invest in money market securities is through a money market savings account or money market mutual fund.
MUTUAL FUNDS
A mutual fund is a pooled investment. When you buy shares in a mutual fund, you are buying shares in a professionally managed portfolio of stocks, bonds, or other securities. Investment managers are responsible for buying and selling securities according to specific investment objectives.
An investor should carefully consider investment objectives, risks, charges and expenses of the particular fund before investing. Your financial advisor can provide you with a copy of the prospectus that contains this and other information about the investment company. Read the prospectus carefully prior to investing.
OPTION ACCOUNTS
An option is a contract that gives you the right to buy or sell a security at a pre-determined price within a stated period of time. Options are primarily used to either protect securities you already own against a market decline, or speculate on the future movement of the market value of a security. Options are complex securities that carry a high degree of risk and are not suitable for all investors.
REITS
A Real Estate Investment Trust (REIT) is a company whose primary business is to manage income-producing real estate. Like corporations that offer common stock, REITs offer shares to the public, but unlike stocks, REITs are required to pay out 90% of their taxable income in the form of dividends to shareholders.
Liquidity can be a problem and should be discussed with your financial advisor. REITs can be risky, especially those that place its investments in a limited geographical location or in a specific type of property (such as office REITs). Investments in REITS are also subject to the risks related in direct investment real estate, i.e., real estate risk, regulatory risks, concentration risk, and diversification risk. Your financial advisor can answer your specific questions.
RETIREMENT PLANNING
There are a variety of retirement planning options that can meet your needs. Your employer funds some; you fund some. In most cases, withdrawals made before age 59
1/2 are subject to a 10 percent penalty, and withdrawals usually must begin by April 1 of the year after you turn age 70. Income taxes are also due upon withdrawal in most cases.
STOCKS
A stock represents an ownership or equity stake in a corporation. If you are a stockholder, you own a proportionate share in the corporation's assets and you may be paid a share of the company's earnings in the form of dividends. A stock may also entitle its owner to a proportionate voting right in the election of the company's board of directors and in special circumstances requiring shareholder approval, such as a proposed merger or acquisition.
TRUST AND ESTATE SERVICES
WHAT IS A TRUST?
A trust is a legal arrangement whereby a grantor (the person who creates a trust) transfers a property to a trustee (an individual or corporation empowered by law to administer the terms of the trust) to be managed for the benefit of one or more beneficiaries (the person or organization designated to receive benefits from a trust). Trusts fall within one of two general categories: revocable trusts (trusts that can be changed by the grantor or beneficiary) and irrevocable trusts (trusts that cannot be changed, once established).
HOW A TRUST WORKS
A trust is a financial and estate planning tool designed to help you manage your assets now and for the future. When you (as the grantor) set up a trust, you transfer legal ownership of the trust�s assets to a trustee, but you do not necessarily relinquish control. The trustee can be an individual or corporation that will act on your behalf, or on behalf of your beneficiaries, to manage the assets you place in trust. You may designate yourself or another person as trustee, but anyone who serves as trustee is legally bound to carry out your wishes according to the terms of your trust.
WEALTH PLANNING
Wealth planning is the center of the wealth management process. The fundamental purpose of a wealth plan is to determine how your financial resources can help you achieve your personal, family and philanthropic goals.
Each plan is custom-tailored to design a long-term roadmap based on your specific goals, resources, relationships and commitments. Your wealth plan will cover a wide range of topics concerning the management of your wealth including cash flow analysis, credit management, tax planning, asset allocation and diversification, management of financial and non-financial assets, and estate planning.
