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What is financial planning?

Financial planning is a holistic, ongoing process that strives to match your financial objectives and intangible sense of personal fulfillment with disciplined financial action.  It is a means to gain control over your financial resources and plan for your future.  A comprehensive financial plan address all aspects of your financial life including investments, retirement, estate, education, taxes, health, insurance, and budgeting.

What's the difference between financial planning and investment advice?

Financial planning is broader.  It looks at your entire financial life -- retirement, investments, tax, risk management and insurance, budget, cash flow, tuition planning, and estate planning.  Investment advice focuses specifically on investing strategies.

Does financial planning make sense if my financial resources are limited?

Financial planning is not just for the wealthy.  People of every income bracket benefit from gaining mastery over their financial resources.  Strategies developed during the planning process can help you reach your life goals, as they exist now or develop in the future.  Planning helps you recognize your individual view of fulfillment and determine which expenditures further your goals.

What financial planning credentials are the most important in selecting an advisor?

There are many designations in the financial services industry but the most rigorous is the CERTIFIED FINANCIAL PLANNER (CFP) designation.  CFP practitioners are distinguished from other financial advisors by the requirements needed to obtain and retain the use of the CFP mark, including education, examination, experience, ethics, and continuing education. The CFP mark is the public's assurance that the financial professional will be held accountable.

With whom is the company registered?

Foresight Financial Planning is a registered investment Advisor with the State of California.

Does Foresight Financial Planning receive commissions from brokerage firms or mutual fund companies.

The firm's only investment compensation is from fees it receives from clients for assets under management.  This assures objectivity in portfolio construction and management.

Will you work with my existing advisors?

Yes, we will be happy to coordinate with your tax advisor and attorney and, in most cases, such consultations are included as part of our normal management fee.

Will I be able to take part in investment decisions if you manage my portfolio?

Yes, you will.  When we select investments for your portfolio, we will explain the purpose of each one and you will have the opportunity to approve, modify, or reject a particular recommendation.  Additionally, you will received notification by mail within three to five business days of each investment change, and you are always welcome to call and discuss the change.

Will I have to sell all or part of my current investments to work with you?

In most cases, we recommend significant changes to a client's asset allocation and specific investments.  However, changes are usually implemented over time, and can be adapted to some of your current holdings.  For example, if you have large unrealized gains in a position that could trigger high income taxes if sold or if you have a strong desire to keep a particular holding, we will use our best judgment to accommodate specific concerns.

Can I still work with you if I manage some investments on my own?

Yes.  We can set up a separate account that will hold the assets you wish us to manage, while you retain control over your self-managed account.  All investments -- whether managed by us or not -- will be factored into the asset allocation we develop for you.

Will you provide advice on how I should invest in my company's 401K Plan?

Yes, we will provide guidance on how to choose among the available funds in your company plan.

"Wisdom is not a product of schooling but of the life-long attempt to acquire it."
Albert Einstein