Frequently Asked Questions
We have provided answers to the following common FAQ's asked about Three Bearings Fiduciary Advisors and Fee-Only Fiduciary Advisors.
Who are you?
What is a fiduciary?
What do you do?
How are you compensated?
Do "fee-only" and "fee-based" mean the same thing?
What does 'CFP' mean?
Do your advisors pursue ongoing professional development?
What types of relationships do you offer?
Who are your clients?
What is your wealth management philosophy?
What makes you different from other advisors?
How do I go about getting to know you?
What will occur during the initial discussion?
Do you have a minimum fee?
Why should I place my trust in you?
What can I expect of you when I become a client?
What do you expect of me as a client?
WHO ARE YOU?
We are fee-only financial planners committed to a fiduciary relationship with our clients. We advise over 100 clients with many unique financial circumstances. We manage over $60 million in assets.
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WHAT IS A FIDUCIARY ?
A fiduciary is one who manages property for the benefit of another, exercises discretionary authority or control over assets, acts in a professional capacity of trust and renders comprehensive and continuous advice.
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WHAT DO YOU DO?
- We work with you on an individual basis
- We help you articulate your goals & objectives
- We assess your current situation (net worth, income)
- We identify obstacles to achieving your dreams and goals
- We create strategies to help you overcome the obstacles
- We follow up to ensure implementation
- We simplify complex concepts for you
HOW ARE YOU COMPENSATED?
As fee-only advisors, our compensation comes directly from you, our client. We do not sell any products or accept commissions in any form.
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DO "FEE-ONLY" AND "FEE-BASED" MEAN THE SAME THING?
No. Fee-only advisors offer unbiased objective advice without the inherent conflict of interest arising from product sales. There are hundreds of thousands of so-called financial planners in the country, but there are less than 5,000 fee-only financial planners.
Fee-based planners, on the other hand, may sell products and receive commissions. Part of their services may be based on fees, but they may be receiving commissions on ancillary products that they recommend and sell.
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WHAT DOES 'CFP' MEAN?
CFP: Certified Financial Planner is a registered trademark of the Certified Financial Planner Board of Standards in Denver, Colorado. Individuals holding this designation have passed a comprehensive written examination that covers the full range of personal financial planning issues. In addition, CFP certificants have at least three years of financial services experience. CFP certificants are required to obtain a minimum of 30 hours of continuing education every two years.
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DO YOUR ADVISORS PURSUE ONGOING PROFESSIONAL DEVELOPMENT?
Yes. Our advisors are members of the National Association of Personal Financial Advisors. Registration with NAPFA requires 60 hours of continuing education every two years, which is twice that of the CFP Board of Standards. Our advisors attend one or more conferences each year, along with monthly meetings in the local area to enhance their advisory skills.
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WHAT TYPES OF RELATIONSHIPS DO YOU OFFER?
We offer two types of relationships:
- One-time financial planning relationships
- Ongoing comprehensive financial planning & investment management relationships
Financial Planning Agreement (limited-duration relationship)
- Important client issues are identified
- Review and analysis of your current situation
- Specific recommendations provided in a formal plan
- Recommendations implemented by the client
- Fee is estimated based on the required work
- Comprehensive Financial Agreement (ongoing relationship)
Ongoing comprehensive financial planning including, but not limited to:
cash flow, investment management, tax planning, retirement planning, and estate planning
- Recommendations implemented by Three Bearings Fiduciary Advisors on client’s behalf
- Ongoing investment management and performance reporting
- Online access to investment accounts
- Online access to other accounts (bank, credit cards, loans) through our account aggregation service
- Access to a corporate trustee through National Advisors Trust Company
- Federal and state tax preparation services, including electronic filing
- Fee is based on a percentage of investable assets
WHO ARE YOUR CLIENTS?
- Individuals
- Couples
- Executives
- Small business owners
- Children of clients
- Parents of clients
WHAT IS YOUR WEALTH MANAGEMENT PHILOSOPHY?
- We believe in diversified portfolios
- We tailor portfolios to the needs of the client
- We believe in incremental gains, not home runs
- We work to balance risk and returns
- We consider tax minimization, but not at the expense of investment returns
WHAT MAKES YOU DIFFERENT FROM OTHER ADVISORS?
- We are warm, friendly and caring professionals
- We are fee-only advisors (no product sales)
- We focus on life planning to help you achieve your dreams
- We take the NAPFA Fiduciary Oath (most advisors do not consider themselves fiduciaries)
- We offer trust services through National Advisors Trust Company
- We have over twenty years of collective financial planning experience
- We maintain a business continuity plan in case of natural or man-made disaster
We offer client account access (account aggregation) through our web site, including:
Client accounts managed by us
- Accounts not managed by us
- Bank accounts
- Retirement accounts
- Credit card accounts
- Mortgage and other loan accounts
HOW DO I GO ABOUT GETTING TO KNOW YOU?
Simply call and ask to speak with one of our financial planners. We will conduct a telephone interview to determine how you may benefit from our services. At the end of the telephone interview, we will set an initial meeting date when everyone is available (including spouse/partner)
WHAT WILL OCCUR DURING THE INITIAL DISCUSSION?
- We will visit with you to learn about your situation
- We will listen to your concerns and discuss your perceived obstacles
- We will acquire a sense of your goals and objectives
- We will gain an understanding of your expectations
- There is no charge for the initial discussion, which may be by telephone.
DO YOU HAVE A MINIMUM FEE?
No. We are available for consultation on an hourly basis. Many of our clients are individuals, couples and small businesses that have over $200,000 of investable assets (including retirement plans). Our minimum fee for both financial planning and investment management is $3,500.
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WHY SHOULD I PLACE MY TRUST IN YOU?
We offer a unique value proposition second to none. Everyone at Three Bearings Fiduciary Advisors is a forthright individual, family oriented and eager to apply their expertise to your situation. We are involved in our communities and schools to better humankind. We are a collaborative team of individuals well prepared to better your life situation.
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WHAT CAN I EXPECT OF YOU WHEN I BECOME A CLIENT?
- A close working relationship
- Superb attention to detail
- Prompt response to letters, calls and emails
- Clear reasoning for our recommendations
- Diligent execution of the tasks at hand
- Confidentiality of information
- Honesty in all matters
- Peace of mind
WHAT DO YOU EXPECT OF ME AS A CLIENT?
- Commitment to improving your life
- Full disclosure at all times
- Open to accepting advice on your finances
- Recognition of the value of unbiased advice
- Willingness to implement changes
- Honest feedback about our relationship
Email your questions to info@threebearings.com
