Frequently Asked Questions
1. Would you describe 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 Woodstone Financial, LLC, the financial planning process consists of several distinct steps. It is important to remember that financial planning is a process . . . not an event.
2. How do you create this financial plan or blueprint?
First we 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 we 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, we design a customized financial plan for you. Finally, to achieve the intended results, you must implement and monitor your plan.
3. This sounds like a lot of work, is it?
It may seem like that at first, but the good news is, if you follow your plan and maintain a disciplined approach, you can rest well knowing you can reach your stated goals. At Woodstone Financial, we try to make the process as easy as possible for you. In addition to receiving professional advice on your most important financial concerns, we can also provide implementation and ongoing asset management services, if appropriate for your needs.
4. Who can benefit most from your services?
Any individual seeking financial peace of mind can benefit from our services. We serve people at all income levels, from all walks of life. We work with clients on a fee-only basis. In so doing, we address all facets of our clients' financial lives. We strongly believe in the benefits of holistic financial planning. In addition, any corporation or organization seeking quality, objective financial education for their employees or members can benefit from our financial education programs.
5. What is ''Fee-Only'' financial planning and why should that be important to me?
Because we are Fee-Only financial planners, most conflicts of interest regarding compensation are removed. We do not accept sales commissions; we work solely for our clients. Because we do not sell financial products such as investments and insurance, there are no third-party relationships or outside influences to color our thinking and financial recommendations. For more information on Fee-Only financial planning, including our Code of Ethics, Fiduciary Code and member requirements, please visit www.NAPFA.org. In addition, our firm is a Registered Investment Advisor (RIA)in the State of North Carolina; as such, we 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. We would be happy to send you a copy of our ADV Part II. Please contact us to request your copy.
6. 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 into 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.
7. 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 Woodstone Financial, LLC, we realize that everyone has financial needs. We are 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 us today and let's get started.
8. Does Woodstone Financial, LLC, provide only comprehensive financial planning?
No. We are primarily an investment management firm. For most of our clients, financial planning is included in our fee. Financial planning may also be provided on an individual basis. For financial planning only, fees are quoted separately.
9. 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 our services appealing and beneficial. If you have a desire to simplify your financial affairs, our Investment Management Services may be right for you
10. 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. Woodstone Financial can help your employees understand the benefits of your programs. Please call to discuss your specific needs. We can custom-build an educational program for your company.
11. What types of securities do you provide advice for?
We 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. We 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, we can provide counseling, guidance and/or resources for you. Clients are encouraged to call us 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. We also encourage our clients to call us 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?'', or ''How can I maximize my Flex Spending Account, Cafeteria Plan or Section 125 Plan at work?''
12. If I use Woodstone Financial, LLC, to develop a financial plan, am I obligated to purchase the recommended products?
Absolutely not. We will offer recommendations which in our 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, we will suggest the kind of policy, which riders and what amounts may be best for you. We will then direct you to a choice of companies that can provide a quality product at competitive prices for you. If you wish, we can help you purchase investments and/or set up your accounts with a third-party custodian.
13. Would you tell me about your investment philosophy?
As an investment management firm, we 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. We do not suggest that we can make the correct decision every time. We do believe, however, that studying the historic trends and relationships of investment classes and understanding the risk/reward relationship 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. We believe that having a diversified, well-balanced portfolio of passively managed, no-load mutual funds, following long-term buy-and-hold strategies, and having patience, will increase the likelihood that one will achieve their long-term financial objectives.
14. How do you select investments for a client?
We build portfolios of diversified, passively managed, no-load mutual funds. We provide our clients access to asset class institutional mutual funds, not available to retail investors. The ruling notion that guides our portfolio design is that diversification across all asset classes; both fixed income and equities, both domestic and foreign holds the key to long-term success. Our clients participate in global capital markets and share in the growth of those markets over time. We do not engage in market timing or tactical approaches to investing. With fixed income investments, we look for quality and safety first and yield second. As fiduciaries for our clients, we strive to obtain the most appropriate investment vehicles to meet your objectives, while being very conscious of total expenses and risk exposure.
15. What are your fees?
Investment Management Clients pay a fee which is based on a percentage of assets under management. The fees for financial planning services are based on the complexity of a given client's needs. Currently, retainer fees for the first year range from $3,000-$15,000. Renewal fees are calculated at the time of renewal but generally range from $1,800-$9,000.
16. How much will my financial plan cost?
Financial planning fees are determined on a client-by-client basis; the total fee for a financial plan will vary based on the specific needs and complexity of your situation. An estimate is provided after our initial meeting, when your personal needs are fully identified.
17. 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.
18. Once my financial plan is completed, will our relationship end?
Because financial planning is a process, not an event, we offer only ongoing retainer services. We feel very strongly that successful outcomes are best achieved by ongoing implementation.
19. How can I get started?
The first step is an initial inquiry from you. Call us at (828) 225-1730 or email us at info@woodstonefinancial.com. We will schedule initial meeting, either on the phone or in our offices. You will be asked to complete the Confidential Client Questionnaire found under the Client Forms tab. Once we receive the Questionnaire, we will schedule the initial meeting. Appointments are scheduled based on availability during regular business hours of 9-5, Monday through Friday. Should you decide to engage our services, we can discuss which of our services and client tracks is appropriate for you. Most clients find the financial planning process to be stimulating and enlightening. The end result, of course, is greater peace of mind. We look forward to helping YOU build a brighter financial future!
20. What can I expect from Woodstone Financial, LLC?
Plans that suit your needs: Every situation is different and Woodstone has a plan that matches your situation. For those with significant assets desiring someone else to handle all the details of day-to-day monitoring and investing of your portfolio, a Managed Account is suggested. Financial planning: While investments are certainly an important area (and our particular area of expertise), together we review many issues other than investments. Examples are tax planning, retirement planning, living trusts, estate planning, gifting, charitable giving, mortgage financing, funding a child’s IRA, Roth IRA conversions, IRA distributions, and tax-deferred saving for college expenses. Sometimes we use outside professionals to prepare specific documents (e.g., a trust attorney). Woodstone maintains a list of professionals for your reference and together we review any documentation prepared by others to make sure it fits your specific financial circumstance. Fee-only Compensation: It’s important to realize that Woodstone Financial, LLC, is a NAPFA-Registered Financial Advisor and is strictly Fee-Only. No compensation of any sort is received by Woodstone other than that paid by you and other clients. This puts Woodstone and your interests in line with your interests and with minimal conflict of interest. Ask every advisor you interview about potential conflicts of interest. Woodstone does not sell anything: Woodstone is available to advise and coach you on important financial matters. Woodstone does not sell insurance, mutual funds, annuities or anything other than advice and service. Woodstone will never attempt to sell you anything. When interviewing a financial advisor, find out how they are compensated. Asset allocation designed for your specific financial circumstances: Together we will design an asset allocation (specific amounts of cash, bonds, large companies, small companies, domestic companies and foreign companies) that is optimized for your specific circumstances (financial goals, time horizon, and risk tolerance). Complete confidentiality: Confidentiality is a hallmark at Woodstone Financial, LLC. All account data are housed in a secure manner. Clients are only discussed when necessary to accomplish official Woodstone business and then only with your advance permission. The client list is never divulged or distributed to anyone. Regular face-to-face meetings: Many new clients like to meet in our office quarterly. Some decide that’s too often after they reach a comfort level with our results and detailed reporting. Meetings may also be held by telephone. Employee benefit plan monitoring: Evaluation of 401(k), 403(b) and other qualified retirement plans in which you participate is part of the financial planning service available to you. Woodstone recommends investments to use in those plans and makes sure those investments fit within your overall asset allocation, then you execute the transactions. Employee stock purchase plans (ESPP) can be similarly monitored. Investment supervision: Woodstone Financial, LLC, continuously monitors the investment companies whose mutual funds are recommended to clients. Woodstone uses a variety of resources including personal attendance at technical, investment, and financial planning conferences, and professional quality analysis reports and tools purchased by Woodstone Financial, LLC. The results of this research are available to clients via the mutual funds purchased for your accounts. Your managed accounts are monitored and rebalanced regularly according to the Investment Policy Statement approved by you. Financial Education: Part of our job at Woodstone is to educate you about financial matters. We’ll do that in our periodic meetings. We consider it a large success when a client has become an "intelligent investor" and he or she is ready to become self-directed! NO SURPRISES!: The Investment Policy Statement, designed for you with your input, specifies the investments to be made on your behalf. You will always be in control and never surprised by investments made for you since you will know in advance what to expect.
21. What investments are used by Woodstone Financial, LLC?
This is completely dependent on the specific investment policy and asset allocation we develop together for you. Woodstone primarily uses passively managed, no-load stock and bond mutual funds, and a few individual bonds. Woodstone has access to institutional funds, exchange-traded funds, and other ultra low-cost funds that are not available to individual investors. Larger accounts may have access to investment strategies that include separate account management (experienced fund managers that buy and sell stocks directly for your account), ownership in pools of well-diversified first and second mortgages, and other strategies available only to accredited investors.
22. How are my assets kept safe?
Any securities purchased for your accounts and all cash balances are retained with a custodial institution designated by the client. Woodstone Financial, LLC, can not take custody of your assets. Woodstone Financial, LLC, receives no commission or other financial benefit from any broker-dealer or other institution that may be used in connection with the client’s accounts. Account protection is provided by the client's custodian but of course the protection does not apply to fluctuations in the market value of your securities.
23. What’s your planning experience?
Joel Kelley, CFP®, has over 25 years of experience investing in mutual funds, stocks, bonds, and rental real estate. In 1992, he began managing accounts for others and after registering as an investment adviser in 2003, he began charging a fee for managing client accounts. Joel was employed as an petroleum geologist with Burlington Resources and The Harlow Corporation until June, 1990. He was a teacher and National Science Foundation Program Director through 1996. In June, 2003, he founded Woodstone Financial, LLC, a fee-only financial planning firm in Asheville, NC. He holds an undergraduate degree in Geology and a graduate degree in Science Education. He is a NAPFA Registered Financial Advisor, member of the Financial Planning Association, and the Alliance of Cambridge Advisors, a nationwide network of Fee-Only planners. In March, 2006, Mr. Kelley was authorized by the Certified Financial Planner Board of Standards (CFP Board) to use the certification marks CFP®, Certified Financial Planner™ and CFP (with flame logo)® in accordance with CFP Board certification and renewal requirements. CFP® licensees have the background and proven ability to provide consultation in the important areas of your financial life including investments, tax, retirement, insurance and estate planning. CFP® licensees are also required to satisfy ongoing education requirements to maintain the license. Please refer to the Certified Financial Planner Board of Standards website for more details or request the Why You Should Choose a Certified Financial Planner™ Practitioner brochure for a detailed explanation of the requirements for licensing the Certified Financial Planner registered service marks.
24. What additional materials are available?
I encourage you to visit the site of the Certified Financial Planner Board of Standards website. Be sure to download and read the pamphlet entitled "10 Questions to Ask When Choosing a Financial Planner". You’ll find it under the Publications and Resource Library tab.
25. What about References?
Confidentiality is a hallmark at Woodstone Financial, LLC. All account data are housed in a secure manner. Clients are only discussed when necessary to accomplish official Woodstone business and then only with your advance permission. The client list is never divulged or distributed to anyone.