Frequently Asked Questions

1. My financial situation has changed for the worst, and I don’t know what to do about it. I’ve been ignoring the situation, but I wonder what is the best way forward?

Not wanting to face a new financial reality is perfectly understandable, but ignoring the situation is not a productive, long-term strategy. We have no magical solutions at Bob Goldman Financial Planning, but we do believe that it is better to come to grips with your finances, whatever they may be, and develop a new, appropriate and reasonable plan for the future. After all, your finances may have changed, but your goals have probably remained the same. A new plan may involve budgeting and rebuilding your savings. It may involve rethinking your investment strategy, and dialing up or down the level of risk that you need to take on. What is most important is that you work with someone who is objective, and who puts your interests first.

2. The stock market has dropped considerably, but how do I decide whether to jump in or stay out?

Bob is not a market timer, and he does not believe anyone can forecast the future. That’s why we do not base investment decisions on what we think will happen in the markets, but what we know is happening with you. Instead of analyzing the markets, let’s analyze your needs, your age, your specific goals. By working together and doing financial projections, we can decide what level of market involvement – and risk – is appropriate. If you are in good shape, financially, you may only need a small exposure to stocks and should instead focus on the preservation of capital. If you need traditional stock returns to fund your future, you will have to take on risk – but you will be doing so because you have made an informed decision, not because some investment wizard believes they can see into the future.

3. I’ve been working with another investment advisor, and I think they’re doing a good job, but I’m not sure. How can I find out?

As an hourly planner, who does not sell or manage investments, Bob is often asked to provide an objective second opinion on portfolios. The process involves analyzing how your advisor has you invested. Are you properly diversified and is the asset allocation appropriate for your age and goals? We also look at performance to see if you are receiving an appropriate return for the level of risk you are taking on. Importantly, we focus on cost – not only in terms of management fees and transaction charges, but also in internal fees that are built into many mutual funds and rarely disclosed.

In many cases, we can tell a client that they are correctly invested and that their advisor is delivering value for the money you pay them. Other times, we find clients are paying too much and receiving too little in terms of return and peace of mind. In this case, we can recommend other solutions for managing your investments that cost less and are likely to perform better.

4. I want the objective opinion of a financial planner because the economy is awful and much of my personal wealth has evaporated. For exactly the same reasons, I don’t have a lot of money to spend.

As an hourly planner, Bob can work with clients across the economic spectrum. Depending on the complexity of the issues, we can often accomplish a great deal in just a few hours. While a full financial plan and investment review can take ten hours or more, an extremely useful “Financial Action Plan” can be developed in as little as three to five hours, including meeting and preparation time. This plan will give you a picture of where you are now, and what you will have to do to reach your goals. It can also include an investment review. To accomplish all this as cost-effectively as possible, Bob sends clients a “Secure Survey” to fill out prior to the meeting. This survey goes to a secure website that only Bob can access, and saves the client a great deal of time – and money – in terms of data entry. Over time, you may want more in-depth investment recommendations, budgeting and long-term planning, but a “Financial Action Plan” is a great first step to responding to present economic conditions and getting your financial house in order.

5. I’ve never worked with a financial planner before. What can I expect?

When you work with Bob Goldman Financial Planning, the first step is a free “Get Acquainted” meeting, either in person or by phone. It’s the perfect time for you to start discussing your immediate and long-term goals. It’s also a no-pressure opportunity for you to learn more, and to decide whether Bob Goldman Financial Planning is right for you.

At this first meeting, you will receive a written estimate.

If we both decide to work together, Bob Goldman Financial Planning will provide a written contract outlining exactly the services provided and the related costs. A 50% deposit is expected when the contract is signed, with the balance due at the end of the engagement.

In addition, and in accordance with security laws, we will provide a copy of our ADV Part II. This document contains important information about Bob’s qualifications, fiduciary duties, history of any past violations, etc. We will also provide a copy of our privacy policy.

6. What do you charge?

On average, the total cost of most engagements ranges from $500 to $3500, depending on the scope and the complexity of the plan.

The fee is $225 an hour, billed in 15-minute segments. During the free “Get Acquainted” meeting, you will be given an estimate of the number of hours required for your specific project. This fee will include the actual time involved in meeting with you in person or over the phone, researching and analyzing your current situation, and providing specific recommendations and, if appropriate, implementation assistance.

At any time during or following the planning process, you can call for advice. You will be charged for the time we spend together on the phone or in person, in addition to any research or analysis required, at the hourly rate quoted above.

[Note: According to Section 212 of the Internal Revenue Code, an itemized deduction for tax and/or investment advice is permitted in the miscellaneous section of Schedule A. It is subject to a 2% floor of the adjusted gross income on a personal tax return.]

7. What kind of planning issues do you handle?

Bob Goldman Financial Planning serves clients from all walks of life and from all income levels. Clients engage our services for large or small projects, on a one-time, as-needed or on-going basis.

Typical client engagements include, but are not limited to:

• Creating and preserving personal wealth
• Developing strategies for budgeting and cash flow
• Creating an appropriate investment program
• Reducing income tax liabilities
• Planning for a home purchase or refinance
• Funding college costs
• Preparing for retirement
• Managing the assets of a parent or relative
• Maximizing wealth transfer
• Providing an objective “second opinion” on financial issues
• Analyzing life, long-term care, and disability insurance needs
• Delivering financial seminars for business or civic groups
• Fostering peace of mind through proper planning today

8. What is your investment philosophy?

Quite simply, we do not believe than anyone can “beat the market.” There may be individuals who are able to out perform the market for a period of time, but identifying these managers at the beginning of their run and selling your holdings before they disappoint, is only a matter of luck. .

Instead of trying to beat the market, we believe that by keeping costs low, keeping taxes in mind, and choosing an investment strategy appropriate to your needs and goals, you can leverage—with relative safety—the earning power of the markets.

We do believe it is critically important to have the right asset allocation; that is, a diversified, balanced, age-appropriate portfolio of investments in equities, fixed-income instruments, and cash. The “right” allocation is based solely on your individual requirements and your tolerance for risk. We also believe it is essential to stick to your asset allocation, ignoring the fluctuations of the market. Finally, we believe it is important to regularly “rebalance” your accounts, harvesting gains and cutting loses as you return to your original allocation.

This may sound like a daunting task, but it is possible to implement the plan yourself and save considerably in management fees, load fees, and high commissions. If you have neither the time nor the interest to manage your investments yourself, we can recommend a low-cost service to do it for you without the expense of a “money manager.”

9. What is a financial planner or advisor?

Anyone can call himself or herself a financial planner or advisor. That’s why it’s essential to be sure of the qualifications, credentials, and compensation arrangements of a planner or advisor before you entrust them with your finances.

To provide answers to these critical questions, Bob Goldman Financial Planning offers a free “Get Acquainted” meeting either by the telephone or in person. At that time, we will provide all legally required disclosure materials, the ADV II, as well as a statement of our privacy policy.

Bob Goldman is licensed by the state as a Registered Investment Advisor. This means we have a fiduciary relationship to our clients – we must put your interests ahead of our own. Registration does not certify any endorsement, but it does legally allow us to charge a fee for advice. Bob also holds a NASD Series 65 license, required by most U.S. states for individuals acting as investment advisors.

[For more information on financial planning, including the Code of Ethics and Fiduciary requirements, please visit www.CFP-Board.org.]

Choosing a financial planner is an important decision, and while many agree with nationally-known financial columnists like Jonathan Clements and writers like Jean Chatzky that an hourly planner represents your best choice, you should carefully study all your options.

10. What if I want or need to buy investment or insurance products? How do I do that?

Bob Goldman Financial Planning does not sell products, only time and expertise. We offer specific recommendations and opinions on products and services that may be appropriate for your situation, and, in turn, can advise you where to obtain those products and services. If appropriate, and at your request, we also can help with plan implementation. The standard hourly fee is charged for implementation.

11. Do you provide anything other than a comprehensive financial plan?

Yes. Although a comprehensive financial plan yields the greatest benefits, Bob Goldman Financial Planning can limit services to specific needs like cash management and budgeting, investment analysis or college funding – whatever is critical to you right now.

12. My spouse and I need help and guidance to start building for our financial future. Will you accept us as clients?

Yes. There are no minimum income levels or net worth requirements. Everyone has financial questions. Bob Goldman Financial Planning is proud to work with people from all income levels and all walks of life.

13. I already have substantial assets and am doing quite well financially – I think. Can you help me?

Yes. Many of our services are designed for people who require more sophisticated financial planning or advice.If you’re interested in a professional review or second opinion, Bob Goldman Financial Planning can also provide that.

14. I’m in charge of the retirement plans and employee benefits at my company and would like to get more employees to participate. How can you help us?

Education is critical in increasing employee participation and appreciation. We can tailor a program for a company’s employees to help them understand the benefits of various benefit programs.

15. Can you help me with any kind of securities?

Yes. Advice is provided on all types of securities, including mutual funds, stocks, stock options, bonds, bank deposits, variable and fixed annuities, limited partnerships and tax shelters. Bob Goldman Financial Services also provides advice on mortgages, budgeting and cash flow issues, 401(k), 403(b) and other retirement programs, life insurance, long-term care, disability insurance, and more.

16. If you develop a financial plan for me, am I obligated to purchase the recommended products?

Absolutely not! Recommendations are offered to meet your needs and objectives, but you are under no obligation to act on these recommendations. We also recognize the importance of shopping around for the best available product or service. If you need life or disability insurance, for example, we will suggest the type of policy, various riders or additions, and the amounts that best fit your situation, then direct you to one or several different providers with quality products at competitive prices. The same applies to estate lawyers, accountants, money managers and mortgage brokers. We will recommend, but it is up to you to decide the person or company from whom you make a purchase.

[The extent of our involvement in helping with your purchase of a product or investment also is up to you. If you would like, we can help you purchase investments and/or set up your accounts with a third-party custodian like a discount broker. Since Bob Goldman Financial Planning is not compensated by commissions on products, you can be assured that recommendations are based on what we truly believe is in your best interests..]

17. Once my financial plan or project is finished, will our relationship end?

No, only that engagement will cease. Just as someone thinks of a doctor as an ongoing provider and has regular medical checkups to maintain good health, good fiscal health requires periodic reviews of your personal finances by a qualified financial advisor.

Because financial planning is a process, not an event, Bob Goldman Financial Planning offers ongoing services, periodic reviews, and day-to-day consultation.

18. How do I get started?

Schedule a complimentary, thirty-minute “Get Acquainted” meeting. Email or call 415.331.1546.

“Get Acquainted” meetings are scheduled based on availability during regular business hours: 9-5, Monday through Friday. Expanded office hours are available to accommodate special needs or emergency situations.

While taking the initial step may seem daunting, most clients find the financial planning process to be stimulating and enlightening. They also enjoy the feeling of taking care of an important part of life that’s all too easy to postpone. The end result, of course, is greater peace of mind. Bob Goldman Financial Planning looks forward to helping you build a brighter financial future.