FAQ

What does 'Fee-Only' mean?

This term refers to the method of compensation for the financial planner. "Fee-Only" planners are compensated solely by fees paid by their clients and do not accept commissions or compensation from any other source. The National Association of Personal Financial Advisors (NAPFA) is the largest organization of "Fee-Only" planners. "Fee-Only" planners believe there is a significant "conflict of interest" if an advisor stands to gain financially from the purchase of any product he or she recommends to the client.

What other forms of compensation are used by financial planners?

Some planners are compensated entirely by commissions from the providers of products recommended and sold. Others, referred to as "Fee-based" or Fee-offset", charge both a fee and receive commissions from selling products. NAPFA Registered Financial Advisors use neither method.

What is comprehensive financial planning?

Comprehensive financial planning focuses on all areas of the client's financial situation and develops a course of action to help the client achieve personal goals. A comprehensive plan includes:

• Analyzing the client's existing situation
• Defining the client's goals
• Creating a plan that considers all the financial aspects of the client's objectives
• Assisting the client in implementing the recommendations
• Periodically reviewing and revising the plan to adjust to changes in the financial environment and the client's goals
• What financial planners are best qualified to develop such a comprehensive plan?

All NAPFA Registered Financial Advisors are professionally qualified. To obtain this designation, they have demonstrated their ability to provide sophisticated, comprehensive financial planning. Specific requirements include:

• Compliance with federal and state investment advisor regulations
• Advanced education in the field or other related credentials
• Significant professional experience
• Peer review of a comprehensive plan
• Extensive continuing education
• What does Harbor Light Planning sell?

Sound financial planning advice regarding taxes, investments, insurance, pensions, retirement, estate planning and general financial matters. We also offer tax preparation and audit representation.

Whom do we serve?

Harbor Light Planning provides comprehensive financial planning services to Individuals.

Who can benefit most from our services?

Anyone who wishes to plan prudently for his or her future; who has financial, tax, investment, or estate problems. Furthermore, persons who desire a higher, more sophisticated level of financial planning services may find our program appealing and helpful.

How much money do you need to start a financial program?

There is no minimum or maximum dollar requirement. We recognize that persons with little or no assets have as much need for financial planning as those with ample assets.

How much do we charge for planning services?

Our financial planning fees are determined by the project needed. We generally work on an annual retainer basis with a fee determined by income, assets, and complexity of the work. There are some instances where we work for clients by the project or on an hourly basis.

Are the fees tax deductible?

Yes. Section 212 of the Internal Revenue Code permits an itemized deduction for tax and/or investment advice in the miscellaneous section of Schedule A. This deduction is now subject to a 2% floor of the adjusted gross income. Clients, who own their own business, have a farm or rental property, or who buy and sell investments may also be able to deduct a portion of the fee on the corresponding schedule.

Do we offer a tax service?

Yes. We believe income taxes are the central focal point of most financial programs. Therefore, we offer a personal income tax preparation service. Income tax preparation, as well as audit representation, is included under a full annual retainer agreement.

Do we provide legal services?

No, we are not attorney's. However, we will provide assistance to you and your attorney in the preparation of necessary estate documents

What method of analysis is used to analyze investments?

We do not use technical analysis or charting. We do use a fundamental approach, such as economic conditions, earnings, industry outlook, politics (as it relates to the investment), historical data, general level of interest rates, company management and tax benefits.

Do we guarantee investment performance?

We will only recommend investments that are appropriate for your risk tolerance, tax bracket and long-term goals. We cannot, however, guarantee the future performance of investments as this is based on too many factors outside of our control.

Once a plan is completed, does our relationship end?

Financial planning is a process, not an event. We offer ongoing services, periodic reviews, and day-to-day consultation if requested. Typically the most intensive work we do is in the initial year and then most clients meet with us three times a year to keep their planning up-to-date.

How do you get started?

Click on email us or give us a call and we will see if we can be of assistance to you. There is no charge for your initial consultation.