Clarus Financial Planning - Liane Warcup, CFP

Please tell me about the financial planning process. Financial planning is a multi-step process that provides you with two important things: (1) An in-depth review of your current financial situation, and (2) a blueprint that shows you how to achieve your goals and objectives for the future. At Clarus Financial Planning, the financial planning process consists of seven distinct steps (see Building a Brighter Financial Future flow chart for details on this unique financial planning process). It is important to remember that financial planning is a process . . . not an event. (back to top)

How do you create this blueprint? First I focus on your goals, objectives, priorities and values. For instance: the reduction of current and future income taxes may be an immediate goal, funding a quality education for your children and/or grandchildren may be an intermediate goal, and enjoying a secure financial future in your retirement years is likely to be one of your most important long-term goals. Another great goal in life for some people is creating wealth and/or leaving a legacy for your chosen beneficiaries or charities. You may already be on the road to meeting these objectives and simply need a new strategy, professional insight, or to fine-tune your plan. You may just be starting out, or you may be somewhere in between. Whatever your unique situation may be, everyone needs a periodic assessment of where they are on the road to meeting their financial goals. That’s why I do an in-depth review of your current financial situation. Next, you need to know how you can set about achieving (or continue working toward) your financial goals. By focusing on cash flow, investments, taxes, pensions and retirement plans, estate planning, insurance issues, savings opportunities and other general financial matters, I design a customized financial plan for you. Finally, to achieve the intended results, you must implement and monitor your plan. (back to top)

Who can benefit most from your services? Anyone seeking financial peace of mind can benefit from my services. I serve people at all income levels, from all walks of life. Clients have the flexibility to work with me on either a one-time, as-needed basis or an ongoing basis. I welcome clients who simply need a one-time financial consultation or a second opinion, as well as those who need comprehensive financial planning. In addition, any corporation or organization seeking quality financial education for their employees or members can benefit from my financial education programs. (back to top)

What is "Fee-Only" financial planning and why should that be important to me? Because I am a Fee-Only financial planner, all conflicts of interest regarding compensation are removed. I do not accept sales commissions; I work solely for my clients. Because I do not sell financial products such as investments and insurance, there are no third-party relationships or outside influences to color my thinking and financial recommendations.

In addition, my firm is a Registered Investment Advisor (RIA); as such, I must comply with a host of regulations designed to protect the consumer. One important question you should always ask when considering a financial planner’s services: "May I please have a copy of your ADV Part II?" This document contains important information about the planner’s qualifications, fiduciary duties, history of any past violations, etc. I would be happy to send you a copy of my ADV Part II. Please contact me to request your copy, or download and read my ADV Part II here.

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 I do not sell financial products, I 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 into a portfolio of mutual funds, or find an estate planning attorney or tax professional, I can direct you to the resources you need and/or help you obtain these products and services. If appropriate, I can also help you implement your plan and set up your accounts. (back to top)

Does Clarus Financial Planning provide only comprehensive financial planning? No. In addition to comprehensive financial planning, advisory services are available for real-time planning sessions to address specific needs, such as cash management and budgeting, investment analysis or college education funding. (back to top)

My spouse and I are just beginning to build for our financial future. There is so much to learn! We need help and guidance to get started. Will you accept us as clients? Yes. Some firms have income levels and/or net worth minimums but, at Clarus Financial Planning, I realize that everyone has financial needs. I am proud to work with people from all income levels, and all walks of life. Remember, "You don't have to have a fortune to start building one." Call today and let's get started. (back to top)

I have already accumulated substantial assets and think I am doing quite well. But as I progress and build for the future, things seem to be getting more complicated. I want to be sure I am on track, but I don’t always have the time or inclination to manage the myriad details by myself. Can you help me? Yes. People who need more sophisticated financial planning or advice will find my services appealing and beneficial. If you are looking for a professional review or a second opinion to ensure you are on track, we can provide that, too. (back to top)

I’m in charge of the retirement plans and employee benefits at my firm. I would like to increase the number of employees who participate in our benefit programs. How can you help us? Corporate education is key in building employee participation. I can help your people understand the benefits of your programs. Please call to discuss your specific needs. I can custom-build an educational program for your company. (back to top)

What types of securities do you provide advice for? I provide advice for all types of securities, including mutual funds, stocks (as they relate to your portfolio holdings), bonds, bank deposits, variable and fixed annuities, limited partnerships and tax shelters. I also provide advice on mortgages, budgeting and cash flow issues, 401(k), 403(b) and other retirement programs, stock options, life and disability insurance, etc. If it has to do with money and finances, I can provide counseling, guidance and/or resources for you. I want my clients to know that they can call with any and all of their financial concerns. They are encouraged to call when they have a major life event, such as a new job, a baby, a marriage or divorce, or if they are planning to buy a new home or start their own business. I also encourage clients to call with more common everyday questions, such as: "How should I invest within my 401(k) or 403(b) plan?" "How can I reduce my taxes?" "What advice can you offer on refinancing my home?" "How can I maximize my Flex Spending Account, Cafeteria Plan or Section 125 Plan at work?" (back to top)

If I use Clarus Financial Planning to develop a financial plan, am I obligated to purchase the recommended products? Absolutely not. I will offer recommendations which in my professional opinion will meet your needs and objectives, but you are under no obligation to purchase them. In today’s competitive market, it makes sense to shop around for the best available product or service. For instance, if you need to obtain a life insurance or disability policy, I will suggest the kind of policy, which riders and what amounts may be best for you. I will then direct you to a choice of companies that can provide a quality product at competitive prices for you. If you wish, I can help you purchase investments and/or set up your accounts with a third-party custodian such as a discount broker. (back to top)

Tell me about your investment philosophy. As a financial planner and investment consultant, I believe in the following fundamental principals with regard to designing an investment portfolio and making specific recommendations: The purpose of a client’s investment portfolio is to fund current and/or future financial objectives. The design of the portfolio must take into account the client’s financial objectives, tolerance for risk, needs for current income or liquidity, and special considerations such as income and estate taxes. The important thing to remember is that no one can predict the future. It is difference of opinion that makes a market. Investment and economic "experts" provided with the same information often come to different conclusions. I do not suggest that I can, or that any of the money or mutual fund managers that I recommend, will make the correct decision every time. I do believe, however, that studying the historic trends and relationships of investment classes and the philosophies and approaches of successful investment managers can provide valuable insight. The appropriate allocation of investment assets for your goals and risk tolerance is the most important component in developing an investment portfolio. I believe that having a diversified, well-balanced portfolio, following long-term buy-and-hold strategies, and having patience, will increase the likelihood that one will achieve their long-term financial objectives. (back to top)

How do you select investments for a client? Before I recommend any investment, I consider the current economic conditions, the outlook for that asset class or type of security and how this investment fits within your portfolio given your objectives and tolerance for risk. For equity investments, I focus primarily on the philosophies, experience and track record of the management team. With fixed income investments, I look for the best yield available for a given quality of security. As a fiduciary for my clients, I strive to obtain the most appropriate investment vehicles to meet your objectives, while being very conscience of total expenses and risk exposure. (back to top)

How do you price your financial planning services? The fees are based on the actual time involved in meeting with you in person or over the phone, researching and analyzing your current situation, and providing specific recommendations and implementation assistance (if appropriate). Hourly rates are $240 per hour for services rendered by a Certified Financial Planner (CFP). (back to top)

How much will my financial plan cost? Financial planning fees are determined on a project basis; the total fee for a financial plan will vary from client to client based on the specific needs and complexity of your situation (please see the diagram Building a Brighter Financial Future to learn about my financial planning sequence and the client service options available). An estimate is provided after the Get Acquainted Meeting, when your personal needs are fully identified. Once your financial plan is complete, periodic updates and reviews can be scheduled at whatever frequency you think appropriate. (back to top)

Are your fees tax deductible? Yes. Section 212 of the Internal Revenue Code permits an itemized deduction for tax and/or investment advice in the miscellaneous section of Schedule A. It is subject to a 2% floor of the adjusted gross income on a personal tax return. (back to top)

Once my financial plan is completed, will our relationship end? Because financial planning is a process, not an event, we offer ongoing services, periodic reviews and day-to-day consultation as requested and/or needed. (back to top)

How can I get started? The first step is an initial inquiry from you. Call (630) 578-6684 or e-mail me at info@clarusplans.com. I offer an initial no-cost, no-obligation Get Acquainted Meeting. Most clients find the financial planning process to be stimulating and enlightening. The end result, of course, is greater peace of mind. I look forward to helping YOU create a brighter financial picture! (back to top)