Frequently Asked Questions

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​​​What is financial planning?

Done right, financial planning is a process that helps you figure out where you are financially today and where you want to be in the future, and then helps you determine the best way to get there.

At Hanvanich Financial LLC, the process involves an initial in-depth review of a client’s current financial situation and then the creation of a blueprint on how to achieve future goals and objectives. 

                                               
What is ''Fee-Only'' financial planning and why should that be important to me?

Fee-only financial planning is a financial planning where the planners do not accept sales commissions; they work solely for their clients.  Hanvanich Financial LLC is a fee-only financial planning firm.  Because we work solely for our clients, all conflicts of interest regarding compensation are minimized.  In addition, because we do not sell financial products such as investments and insurance, there are no third-party relationships or outside influences to affect our thinking and financial recommendations.

Our firm is also a Registered Investment Advisor (RIA); as such, we comply with the regulations designed to protect the consumer and we have fiduciary duty to our clients.  One important question you should always ask when considering a financial planner’s services: ''May I please have a copy of your ADV Part 2?'' This document contains important information about the planner’s qualifications, fiduciary duties, history of any past violations, etc.  We would be happy to send you a copy of our ADV Part 2.  Please click contact page to request your copy.

 
I understand the benefits of working with a Fee-Only financial planner, but I might need to obtain financial products.  How will I be able to do that?

While we do not sell financial products, we will offer specific recommendations and opinions regarding the purchase of the various financial products that may be appropriate for you.  So, if you need to obtain an insurance policy or a new mortgage, invest in a portfolio of mutual funds, or find an estate planning attorney or tax professional, we can direct you to the resources you need and/or help you obtain these products and services.  If appropriate, we can also help you implement your plan and set up your accounts.

What is a fiduciary and what is fiduciary duty?

A fiduciary is one who acts legally in the best interests of another.  Fiduciary duty is a duty imposed on investment advisors by law to act as fiduciaries in dealings with their clients.  We are a Registered Investment Advisor firm and have fiduciary duty to our clients.  This means we must hold the client's interest above our own in all matters and avoid conflicts of interest at all costs.  If conflicts inevitably occur, for instance we may invest in securities that we also recommend to clients, then we must clearly disclose and accurately describe those conflicts and how we will maintain impartiality in our recommendations to clients.  The SEC has said that advisors have a duty to*:

• Make reasonable investment recommendations independent of outside influences 
• Select broker-dealers based on their ability to provide the best execution of trades for accounts where the advisor has authority to select the broker-dealer.
• Make recommendations based on a reasonable inquiry into a client's investment objectives, financial situation and other factors
• Always place client interests ahead of their own.

*Source: The North American Securities Administrators Association

How can a financial advisor help me?

Anyone, any age looking for financial peace of mind can benefit from working with a good financial advisor either periodically or on a regular basis.  We serve people at all income levels and from all walks of life – whether the need is one quick question answered or ongoing financial assessment, and direction.  Because our fees are based on the time we spend working for you, we offer an accessible option for beginners, middle-income Americans, and do-it-yourselfers to get quality financial and investment advice.

Each individual’s situation is unique.  Someone just starting out may need a detailed, long-term plan of action while someone else already on the road to achieving their goals simply may need a new strategy, professional insight, fine-tuning or second opinion of an existing plan.  That’s why we work to custom tailor our services to meet each individual’s needs.

Goals can be short-, intermediate-, or long-term.  Reducing current income tax liabilities, for example, is a short-term goal, while funding a child’s education an intermediate one, and enjoying a secure financial retirement a more long-term goal.  By focusing on cash flow, investments, taxes, pensions and retirement plans, insurance issues, savings opportunities, and other general financial matters, we can design a customized financial plan for you. 

  
What types of securities do you provide advice for?

We provide advice on all types of securities, including mutual funds, stocks, bonds, bank deposits, variable and fixed annuities, limited partnerships and tax shelters. We also provide advice on mortgages, budgeting and cash flow issues, 401(k), 403(b), TSP and other retirement programs, life and disability insurance, and more.  If your questions are related to money and finances, we can provide counseling, guidance and resources.  Whatever advice you may need, we can provide assistance.

 
How do you select investments for a client?

Before providing any investment recommendations, we consider current economic conditions, the outlook for a particular asset class or type of security, and how the investment fits within a client’s portfolio given his or her objectives and tolerance for risk.  With equities, the focus is primarily on the philosophies, experience, and track record of the fund’s management teams.  With fixed income investments, we look for the best yield available for a given quality of security. 

As fiduciaries for our clients, we strive to obtain the most appropriate investment vehicles to meet a client’s objectives, while being very conscious of total expenses and risk exposure.

   
If I get financial advice from you, am I obligated to purchase the recommended products?

Absolutely not!  We offer recommendations to meet your needs and objectives, but you are under no obligation to purchase anything.  We also recognize the importance of shopping around for the best available product or service.  For example, if it is appropriate for you to invest in a mutual fund, we will suggest the type of mutual fund, one or several fund families and the investing amounts that best fit your situation.  However, you are under no obligation to invest or purchase any recommended products.

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 we are not compensated by commissions on products, you can be assured that our recommendations are based on what we truly believe is in your best interests.  We take our fiduciary role seriously.

 
How do you charge for financial advice?

Our fees are determined on a project basis based on the actual time involved in researching and analyzing the client’s current situation, providing specific recommendations and implementation assistance (if appropriate), and meeting with a client in person or via the phone.  The total fee will vary from client to client based on the specific needs and complexity of the clients’ situation.  We provide prospective clients with firm quotes of their estimated fees at the end of a no-obligation initial meeting session, when your advisory needs are fully identified.  To schedule a complimentary initial meeting, please call, email or send us a message via the form available on the Contact page.