10 Questions to Ask When Choosing a Financial Planner
from the Certified Financial Planner Board of Standards, Inc.
- What experience do you have?
- What are your qualifications?
- What services do you offer?
- What is your approach to financial planning?
- Will you be the only person working with me?
- How will I pay for your services?
- How much do you typically charge?
- Could anyone besides me benefit from your recommendations?
- Have you ever been publicly disciplined for any unlawful or unethical actions in your professional career?
- Can I have it in writing?
More Frequently Asked Questions
- What makes Finance Arts’ services different from other financial services?
- What is your investment philosophy?
- What if I need to purchase financial products?
- Can I just have an hour or two to talk about specific issues?
- Who can benefit most from your services?
- How can I get started?
- What can I expect from the Get Acquainted meeting?
- Where is your office?
1. What experience do you have?
David Gray began working in Financial Services in 1999 and received his CFP® designation in 2002. Before starting his own firm he worked with a major financial services company and became a compliance officer, responsible for training and oversight of other advisors in the NY/NJ/CT region. Gray has also served as a consultant and Executive Director to nonprofit organizations and brings a wealth of financial experience to his clients.
2. What are your qualifications?
I am a CERTIFIED FINANCIAL PLANNER™ certificant. That means I have successfully completed the education, examination, experience, ethics and continuing education requirements set forth by the Certified Financial Planner Board of Standards, Inc. I am also a member of the Financial Planning Association which requires strict adherence to their Code of Ethics.
3. What services do you offer?
I offer customized financial planning and advice on an hourly, as-needed basis. For clients seeking ongoing access to advisory services without additional regard for billable hours, I can establish a fixed retainer. Whether you need a comprehensive long term cash flow plan or just seek an answer to a specific question, I can provide as much or as little help as you need. Please see the Services page for more information. I do not provide asset management services, investment products, accounting or legal advice.
4. What is your approach to financial planning?
It is hard to get to where you want to go without a map or some direction. The Financial Planning process helps you clarify and define your goals, and then develop a “road map” for how to achieve those goals. Of course, no one can predict the future, but planning helps you with the variables you can control, and to mitigate the variables that are beyond your control. Financial planning is about your priorities, reducing uncertainty, and providing a clear plan of action, to help you make informed decisions about personal financial matters. Click here to read more about the Financial Planning Process.
5. Will you be the only person working with me?
Yes. However, you will likely work with other professionals who will also assist you in carrying out your plan. This may include attorneys, tax preparers, insurance agents, investment brokers, portfolio managers, lenders, employee benefits administrators, or others. These other professionals operate completely independent of Finance Arts and will charge their own fees for their services. Finance Arts neither receives or pays fees to other professionals for referrals.
6. How will I pay for your services?
Services are offered on a fee-only basis. Fee-only means that you pay a fee for the services provided. We accept no commissions or third-party compensation.
7. How much do you typically charge?
The current hourly rate is $175 and is billed in 6-minute increments. There is no minimum. The total fee for a financial plan varies depending on your specific needs and the complexity of your situation. After our initial, complementary, no-obligation, Get Acquainted meeting, you are given a fee estimate based on the estimated number of hours required. You are only charged for the hours actually worked, but the total fee will never exceed the estimate. Most financial planning projects fall in the $1,300 to $2,200 range. Annual check- ups tend to cost between $450 and $900.
8. Could anyone besides me benefit from your recommendations?
Recommendations are client specific; however, your other professional advisors may stand to benefit if you purchase products or services from them. To avoid any conflict of interest, I do not accept any compensation nor do I maintain any compensation or referral arrangements with any financial service providers or other professionals. If a potential conflict of interest exists due to my relationship with another client, I will disclose the nature of the conflict of interest to you in writing.
9. Have you ever been publicly disciplined for any unlawful or unethical actions in your professional career?
No. Nor have I been privately disciplined. I have never been involved in any unlawful or unethical actions. To check the discipline history of any financial planner or advisor, visit:
Certified Financial Planner Board of Standards, Inc.
www.cfp.net, 888-237-6275
North American Securities Administrators Association
www.nasaa.org, 202-737-0900
National Association of Insurance Commissioners
www.naic.org, 816-842-3600
Financial Industry Regulatory Authority
www.finra.org, 800-289-9999
Securities and Exchange Commission
www.sec.gov, 202-942-7040
10. Can I have it in writing?
Yes, print this page. Also, much of this information is contained in Finance Arts’ Investment Adviser disclosure document also known as Form ADV part II. This document contains important information about fees, qualifications, ways of doing business, philosophies, potential conflicts of interest, etc. Click here to view.
More Frequently Asked Questions
11. What makes Finance Arts’ services different from other financial services?
- Fee-Only: I only work for you, not a brokerage house, a bank, or an insurance company. I do not accept any kind of referral incentives from other professionals. My advice is not subject to limitations imposed by sales agreements with third-parties. All of my compensation comes directly from the clients I serve.
- CERTIFIED FINANCIAL PLANNER™ professional: The term “financial planner” is not regulated and anyone may call himself or herself a financial planner. However, CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals are regulated, and must agree to abide by written standards of practice and a code of ethics set forth and enforced by The Certified Financial Planner Board of Standards, Inc.
- Registered Investment Adviser: As a Registered Investment Adviser, Finance Arts must comply with a host of regulations designed to protect the consumer including a fiduciary duty to always act in the client’s best interest.
- No minimum requirements: Finance Arts has no minimum income, portfolio or net worth requirements to become a client. Whether you are just getting your financial affairs organized for the first time, or you need to determine your retirement income schedule, we are here to help.
12. What is your investment philosophy?
Rather than trying to beat the markets, which very few people do with any consistency, I believe that using broad “indexing” to achieve returns in line with market averages while minimizing your costs provides the best way to make sure your money is working for you and not someone else. Trying to match index performance, minimizing your investing costs, and controlling risk through asset allocation is the best way to reduce uncertainty and achieve long-term investment results. Therefore, I recommend passively managed, low-cost, index strategies that are well diversified. Asset allocation and investment recommendations are based on your financial planning objectives, not on recent market activity or economic outlook.
13. What if I need to purchase financial products?
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. Should you need to obtain an insurance policy or a new mortgage, invest in 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 (helping you with the paperwork. At no time will I have any control of your assets).
14. Can I just spend an hour or two with you to talk about one or two specific things?
Yes. I am happy to help you work through issues that may not require comprehensive planning, such as cash management and budgeting, planning a major purchase, choosing investments, or paying for college without going broke. However, a more comprehensive financial planning exercise may show how specific issues impact other elements of your financial situation and goals.
15. Who can benefit most from your services?
Anyone seeking financial peace of mind can benefit from my services, but the clients that usually benefit the most have the following characteristics:
- Want to take an active role in planning their financial future.
- Willing to accept and plan around the long-term returns investment markets offer, acknowledging there is really no way to consistently beat the market, and understanding that it would not be prudent to plan on beating the markets.
- Able (or willing to learn) to manage their own accounts with guidance or instruction when necessary.
- Understand that financial planning is a process; the only guarantee is that things will change. Planning helps prepare for change.
16. How can I get started?
Call us, (609) 924-0040 or click here to request a no-cost, no-obligation Get Acquainted meeting. Next, download a copy of the Confidential Questionnaire, complete it to the best of your ability, and bring it with you to the Get Acquainted meeting (or better yet, send it ahead via mail, fax or email). Should you decide to work with Finance Arts, we can discuss which services are appropriate for you. Please see the process page for more details on getting started with a financial plan.
17. What can I expect from the Get Acquainted meeting?
The primary purpose of the Get Acquainted meeting is to ask questions and get to know each other. I believe that if we are not comfortable with each other, it will be difficult for you to be forthright in discussing your situation, and therefore difficult for me to provide the best advice suited to your needs. This is an opportunity for you to learn more about me and Finance Arts, and for me to assess your needs and estimate the amount of time necessary to complete the work. If it appears that working together would be mutually beneficial, at the end of the meeting, I will provide you a fee estimate. Anything we discuss is private and confidential. I will give you copies of my Privacy Statement and Form ADV Part II at the meeting.
18. Where is your office?
Finance Arts is located in downtown Princeton, near the intersection of Moore Street and Nassau Street at 195 Nassau Street, Suite 31, Princeton, NJ 08542. Click here for a map that can provide detailed directions. 195 Nassau Street is a blue building with a driveway to the left. Our office is at the back of the parking lot behind the 195 building. After-hours parking is available otherwise use the metered spaces on Nassau Street or the adjacent neighborhood.
