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Important Questions You Should Ask
About Cambridge Tax and Financial Consultants
What is a
Registered Investment Advisor?
A Registered Investment Advisor is a fiduciary who has a duty of
undivided loyalty to its clients and must deal fairly and
honestly with them. A Registered Investment Advisor is a
representative of the client.
What does “Fee-Only” mean?
This term refers to the method of compensation for the financial
planner. “Fee-Only” planners are compensated solely by fee paid
by their clients and do not accept compensation from any other
source.
What other forms of compensation are
used by financial planners? Some planners are compensated entirely by commission from the
providers of products recommended and sold. Others referred to
as “Fee-based” charge both a fee and receive commissions from
selling products.
What is comprehensive financial
planning?
Comprehensive financial planning focuses on all areas of the
client’s financial situation and develops a course of action to
help the client achieve personal goals. A comprehensive plan
includes:
• Analyzing the client’s existing situation.
• Defining the client’s goals
• Creating a plan that considers all the financial aspects of
the client’s objectives
• Assisting the client in implementing the recommendations
• Periodically reviewing and revising the plan to adjust to
changes in the financial environment and the client’s goals
What planners are best qualified to
develop such a comprehensive plan?
Financial advisors who have obtained the CERTIFIED FINANCIAL
PLANNERTM designation from the Certified Financial Planner Board
of Standards, Inc.
What type of securities do you provide
advice for? Equities, corporate bonds, commercial paper, commercial paper,
certificates of deposits, municipal securities, mutual funds,
variable annuities, US government securities, option contracts
on securities
What does Bui Financial Advisory sell?Sound financial planning advice regarding taxes, investments,
insurance, pensions, retirement, estate planning and general
financial matters. We also offer tax planning and audit
representation.
Whom do we serve?
Bui Financial Advisory provides comprehensive financial services
to Individuals.
Who can benefit most from our services?
Anyone who wishes to plan prudently for his or her future: who
has financial, tax, investment or estate problems Furthermore,
persons who desire a higher, more sophisticated level of
financial planning services may find our program appealing and
helpful.
What is a financial plan?
An in-depth review of your financial situation, taking into
account your goals and objectives and focusing on income tax
planning, specific investment recommendations, estate planning,
risk management, educational planning and retirement planning.
The plan analyzes and recommends ways that you can achieve your
financial objectives.
When we develop a financial planning
program together, am I obligated to purchase the recommended
products? Often, the products that we recommend to our clients are the
same products we purchase for ourselves, but you are never
obligated to purchase any recommended product. In fact, you are
encouraged to shop for the best available product.
How much money do you need to start a
financial plan?There is no minimum or maximum dollar requirement. We recognize
that persons with little or no assets have as much need for
financial planning as those with ample assets.
How much do we charge for planning
services?
Our financial planning fees are determined by the project
needed. We generally work on a standard annual retainer basis
with the fee determined by income, assets, and complexity of the
work. There are some instances where we work for clients by the
project or on an hourly basis.
Are the fees tax-deductible?Yes. Section 212 of the Internal Revenue Code permits an
itemized deduction for tax and/or investment advice. It can be
found in the miscellaneous section of Schedule A and is subject
to a 2% floor of your adjusted gross income. Clients who own
their own business, have a farm or rental property, or who buy
and sell investments may also be able to deduct a portion of the
fee on the corresponding schedule.
Do we offer a tax service?
Yes. We believe income taxes are the central focal point of most
financial programs. Therefore, we offer an income tax
preparation service. Income tax preparation is included under a
standard annual retainer agreement.
Do we provide legal services?
No. However, we can refer you to attorneys as needed.
What method of analysis is used to analyze investments?
We do not use technical analysis or charting. We do use a
fundamental approach, such as economic conditions, earnings,
industry outlook, politics (as it relates to the investment),
historical data, price-earning ratios, dividends, the general
level of interest rates, company management and tax benefits.
Our main sources of information are financial newspapers and
magazines, research materials prepared by others, and annual
reports, prospectuses and filings with the Securities and
Exchange Commission.
Do we guarantee investment performance?
We will only recommend investments that are appropriate for your
risk tolerance, tax bracket and long term goals. We cannot,
however, guarantee the future performance of investments as this
is based on too many factors outside of our control.
Do you offer portfolio management?
Yes. But we reserve the right to select accounts. Assets may be
managed by directed portfolios under a limited power of
attorney, with the client remaining custody of all funds.
Once a plan is completed, does our
relationship end? Financial planning is a process, not an event. We offer ongoing
services, periodic reviews, and day-to-day consultation if
requested. Typically the most intensive work we do is in the
initial year and then most clients meet with three times a year
to keep their planning up-to-date.
How do I get started?Click on email us or give us a call and we will see if we can be
of assistance to you. There is no charge for the first half hour
of consultation.
Phone (949)–726-0728
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