Frequently Asked Questions

There really is no difference. Some individuals assume a Financial Advisor focuses only on investment management or is another term for a Broker who handles trades at a brokerage firm. This is not the case. Some individuals assume Financial Planners only create financial plans. This is also not the case. The two terms are used interchangeably to describe financial professionals who help clients identify, plan for, and attain financial goals. The only difference between financial professionals who use either of these titles is the breadth or narrowness of the services offered and the manner(s) in which the professionals are compensated for their services

An advisor/planner can serve as a financial coach which may lead to improvements in: a client’s decision-making; financial literacy; ability to recognize biases that affect decision making, especially as they pertain to managing investments; and financial confidence. An advisor/planner may also be a voice of reason and objectivity during times of financial stress or investment market volatility and can help a client manage financial expectations and create realistic financial goals.

Although not always easily measured, benefits may include: higher retirement savings; better investment returns; improved money habits; lower exposure to financial risks; and effective and efficient charitable giving and wealth transfer strategies. The likelihood of success for all of these benefits, qualitative and quantitative, improves with regular monitoring of and adjustments to financial plans as life events transpire and as circumstances change.

As identified by CFP Board, there are seven steps associated with the financial planning process: 1) identify client’s personal and financial situation (which involves collection of relevant documents and data); 2) Identify and select goals; 3) Identify the current course of action and potential alternatives; 4) Develop financial planning recommendations; 5) Present planning recommendations; 6) Implement planning recommendations; and 7) Monitor results and adjust plan as necessary. These steps are appropriate when a complete and integrated financial plan is developed for a client. If a client has financial questions or concerns that are relatively narrow in focus, then the list of steps completed may be abbreviated. (Refer to the list of financial planning practice areas or domains below to see what topic areas are included in a comprehensive financial plan.)

This is a plan that examines all of the key financial subject areas typically of interest to and important for an individual. In addition to the inclusion of all of the subject areas, a well-crafted plan examines the interaction between the subject areas to make sure that plans associated with each subject area work with, rather than against, one another.

The duration of the engagement depends entirely on the needs of the client and the complexity of the issues to be addressed by the advisor/planner. While a simple financial question may be answered within a couple of days, a comprehensive financial plan may take a couple of months to complete. Some clients expect regular reviews of their plans and adjustments made as needed. This may lead to an engagement that lasts many years. Some clients want an advisor/planner to be available on a regular basis for questions and concerns as they arise. This is sometimes called a retainer or subscription model, which is typically billed monthly, quarterly, or annually at a fixed rate. Other clients want their investment portfolios managed by an advisor/planner, which also leads to a long-term professional relationship. Regardless of the nature or duration of the client-advisor engagement, the optimal relationship requires mutual respect and trust and being open-minded to change and new ideas. It also requires the ability to be open and honest about attitudes toward saving and spending and current financial circumstances. Your advisor should NEVER divulge private and/or confidential information that could be linked back to you personally without your explicit consent, except as required by law or regulation.

Budgeting, debt management (good vs. bad debt), emergency funds, strategies to limit impulsive spending.

Maximizing deductions and credits for federal, state, and local tax returns to minimize the payment of taxes while abiding by applicable tax law.

Reducing or eliminating financial risk through insurance products to avoid or reduce losses due to unforeseen events.

Behavior modification strategies to avoid negative outcomes from both foreseen and unforeseen events; best practices to avoid uncertainty and potential financial loss and to avoid increased legal liability; protecting one’s identity, securing electronic devices, etc.

Incorporates short-, medium-, and long-term goals; evaluates tolerance for and ability to take on risk (the chance of losing money); reviews asset allocation (types of investments chosen), and diversification (types of assets chosen within and across asset types); also takes into account the time horizons related to specific financial needs or goals.

Shifting from a saving-focused strategy to a calculated and closely-tracked spending strategy; taking into account charitable and legacy giving and other retirement goals, such as travel or volunteering; filing for Social Security benefits, filing for Medicare benefits; calculating and withdrawing required minimum distributions from retirement plans; evaluating the need for long-term care.

Planning for the transfer of wealth that occurs at the end of life as well as the proper strategies to manage decision-making (during life) in the event that one is no longer competent to make decisions for oneself.

Strategies to improve individual or family income through additional employment, career changes, education as a means to improve job prospects, and strategies to improve upward mobility in a current job.

Primarily for the higher education of one’s children, but may include education for the client and/or spouse or other family member.

Purchasing a house, car, or boat, for example.

Ensuring that funds are allocated to nonprofit institutions either during life or after death.

No. Present Value Financial Services® LLC advocates for the financial success of its clients through sound and considered advice and by achieving a positive return on investment, that is, by delivering value that is greater than the fee for the services provided. A client’s lack of extensive savings and sophisticated investments may be precisely why advice is being sought. A client should not be denied access to financial advice as a result of such a circumstance. The firm’s only requirement is that fees for services be paid in full and on time for the client-advisor relationship to remain active.

No. Client-advisor engagements may be terminated by either party at any time. If you are dissatisfied with the services being provided or circumstances are such that you are no longer able to afford the services requested, then the engagement may be terminated by you, with written notice to your advisor. Fees for all services rendered up to the date of termination are still due and collectible by your advisor. Similarly, if your advisor believes you are not being honest and open about financial circumstances or are unwilling to provide relevant documentation needed for your advisor to provide sound financial advice, then your advisor may terminate the engagement by notifying you in writing. A client not following the law or encouraging the advisor not to follow the law is another reason your advisor may terminate an engagement prematurely.

Present Value Financial Services® LLC does not operate a physical, public-facing office in order to keep costs low and enable the advisor to offer affordable services. Meetings take place over the telephone or “face-to-face” via virtual meeting technologies. In rare circumstances, the advisor may meet in person with a client in a mutually agreeable public location if the client resides in or is visiting the Washington, DC metropolitan area. Non-sensitive and non-confidential information is exchanged via email. Sensitive and/or confidential information is exchanged over the internet using a secure and industry-compliant document exchange service.

Business registration information may be found at Virginia’s State Corporation Commission website. Regulatory information about the advisor and its representative(s) may be found using the links for the Form ADV Parts 1 and 2 found at the bottom of each page contained on this website. The Form ADV is a two-part form required of all Registered Investment Advisors (advisory firms) and their Investment Advisor Representatives (advisory firm owners, directors, and nonclerical employees). Part 1 contains a lengthy series of questions about how the advisory firm operates and contains standardized response categories used by all advisory firms. Part 2A contains open-ended responses to a series of questions about how the advisory firm operates. For Part 2A, firms have discretion over the scope of the responses and level of detail provided. Part 2B contains information about each of the key individuals associated with the firm, including educational background and professional experience. Form ADV Parts 2A and 2B are also referred to as the “Firm Brochure” which must be provided to a prospective client either prior to entering into an advisory agreement or at the time of executing (i.e., signing) an advisory agreement. Active clients must also be provided a firm brochure annually.