Frequently Asked Questions
How do I engage with SFP Wealth?
The two main types of engagement are fee-based financial planning and investment advisory services. Financial planning is typically a one-time engagement spanning a twelve-month period. An investment advisory relationship typically results from the completion of a financial plan (but is not necessary) and incorporates a comprehensive wealth management approach.
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How does SFP Wealth charge for financial planning?
Financial planning is generally a one-time flat fee that is mutually agreed upon with our clients. The planning fee is calculated on a case-by-case basis and accounts for the complexity of the individual situation and time requirements. Additionally, clients have the option to extend the financial planning engagement beyond the first year if there is a desire for ongoing planning analysis and monitoring.
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How does SFP Wealth charge for investment management?
As a fee-only provider of professional financial services, SFP Wealth charges a clearly defined fee to our clients. Our broad array of services - including investment, wealth, and relationship management - are covered exclusively by our fee, a percentage of each client's assets under investment management. Our fee is clearly defined in our initial client meetings, and all statements clearly outline the quarterly management fee charged to accounts.
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Does SFP Wealth perform investment research in-house?
Yes. Our investment team adheres to its own proprietary investment strategy. Our investment Committee constantly monitors holdings and decides as a team to add or eliminate select positions within our clients' portfolios. In addition, we use a number of independent third-party research sources when analyzing potential investments and our current holdings.
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How does SFP Wealth determine a client's risk tolerance?
As part of our wealth management process, SFP Wealth first helps determine how much money a client will need to reach their financial goals and then determines how much risk the client will need to take to achieve those goals. We believe that many investors take on more risk in their portfolios than they need to take or that they are comfortable taking. Our process is in stark contrast to that of many industry advisors who simply provide clients with a questionnaire regarding risk-related questions and then assign them a level of risk tolerance that fits a pre-packaged portfolio model.
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Can SFP Wealth work with my current accounts and holdings?
Yes. We're happy to recommend tax-efficient strategies to transition from your current holdings into more suitable positions, if applicable. This can be done immediately and all at once or gradually, depending on your needs and the risks associated with how your current portfolio is constructed.
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How do I know my investments are safe at SFP Wealth?
SFP Wealth does not hold custody of your account(s) and is restricted by specific laws and regulations. As such, we do not physically hold your money or your investments; nor do we produce your monthly statements. Instead we use firms such as National Financial Services or BNY Mellon as our clients' custodians to hold money and execute trades. SFP Wealth and your custodian are separate companies with no overlapping management or control, providing a clean system of checks and balances. Our clients never lose control of their accounts and always have real-time access to their account balances and holdings.
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How do I know what is happening with my portfolio?
As a client of SFP Wealth, you will be kept well informed of our investment decisions and transactions within your accounts. We remain continuously available to meet with our clients in person and/or over the phone, as often as necessary. We provide quarterly reports, periodic market updates and account reviews. You may also easily access your account through the Wealthscape Investor or Personal Financial View (eMoney) websites.
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What is a CERTIFIED FINANCIAL PLANNER (CFP®)?
The CERTIFIED FINANCIAL PLANNER credential is globally recognized and granted after completing a rigorous course of study and a comprehensive exam on financial planning. CFP® professionals must adhere to a rigid code of ethics in order to remain credentialed. SFP Wealth believes credentials like the CFP® are an important indication of an investment firm’s dedication to excellence and integrity. (Learn more at www.cfp.net)
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What is a Chartered Financial Analyst (CFA®)?
A Chartered Financial Analyst is a globally recognized graduate level self-study program for investment professionals. A CFA must initially meet professional requirements before applying and completing the program. In order to gain the designation of CFA, the candidates must have four years of qualified work experience, possess a bachelor’s degree from an accredited institution and pass a series of examinations. On average, the CFA program takes four years to complete. At SFP Wealth, we believe that the benefits of a CFA are invaluable and add a unique understanding to our team. (Learn more at www.cfainstitute.org)
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Does SFP Wealth's financial planning process include tax analysis and estate planning?
Yes. As a wealth manager, SFP Wealth incorporates a comprehensive financial planning process that takes into consideration all aspects of a client’s financial situation. We have a network of resources to provide legal and insurance services when necessary.
