FAQ - Financial Services
Fees & Expenses
A fiduciary is a person who is legally and morally responsible for managing the assets of another person and stands in a special relationship of trust, confidence, and/or legal responsibility. A fiduciary is required by law to always act in the best interests of their client, beneficiary, or retirement plan participant. At Core Financial Resources, this principle is a core value, guiding everything we do. Our research indicates not all firms or individuals understand the relationships that exist in today’s investment community. Many firms portray themselves as fiduciaries, but do not act in the best interests of their clients. This practice has been very common in the brokerage industry – where firms make significant profits from selling products and receiving commissions.
While selecting a few mutual funds or index etfs may seem simple, our approach is much more comprehensive. We consider your specific goals, tax implications, comfort with market fluctuations, investment costs, insurance needs, and estate planning goals – just to name a few.
The Securities and Exchange Commission and Financial Industry Regulatory Authority in May 2015 issued a joint investor alerts cautioning investors to be wary of Robo-advisors “ Be aware that an automated tool may rely on assumptions that could be incorrect or do not apply to your individual situation… An automated investment tool may not access all of your particular circumstances, such as your age, financial situation and needs, investment experience, other holdings, tax situation, willingness to risk losing your investment money for potentially higher investment returns, time horizon for investing, need for cash and investment goals. Consequently, some tools may suggest investments (including assetallocation models) that may not be right for you.”
Securities and Exchange Office of Investor Advocacy and Financial Industry Regulatory Authority, Joint Investor Alert, Automated Investment Tools updated May 8th 2015
Some advisors and financial institutions may offer a “free” financial plan that is designed to sell you a product. In the long run, following these plans will cost significantly more money in investment fees and commissions. Core Financial Resources charges you directly for creating a financial plan, ensuring that your plan is unbiased and serves your interests.
Unlike many investment firms, Core Financial Resources does not take direct possession of client funds. Instead, we use First Clearing Corporation or invest directly with product providers. Each of the custodians we utilize is a member of the Securities Investor Protection Corporation (SIPC), which protects customers if a brokerage firm closes due to bankruptcy or other financial difficulties and customer assets are missing. The SIPC protects the accounts of each customer up to $500,000 in securities, including a limit of $250,000 on claims for cash. For details, please see www.sipc.org.
Yes. See Account Access
The first step is to meet with or call an advisor. The advisor will work with you to clarify your needs and goals, determine an optimal asset allocation strategy, and coordinate the paperwork required to establish and fund a new account(s). We strive to make the transition as painless and as timely as possible. Schedule and appointment here
Generally yes, although it may depend on the particulars of your plan. Most plans allow participants to “rollover” their account to an IRA at a brokerage firm once they are no longer employed. In these cases, you would just open a rollover IRA and instruct your former 401(k) provider to liquidate the account and move the assets to your new Rollover IRA account.
Although not required, we recommend that you bring a copy of all recent financial statements including quarterly statements of retirement accounts, brokerage accounts, annuities, 401(k) accounts, etc. We also ask that you bring copies of trust or will documents, tax returns, and a brief listing of any current liabilities. These documents will help us create a snapshot of your current financial situation.
Fees & Expenses
We prefer advisory relationships in which you pay us directly (automatically deducted from your account) for our services. This means that we forego kickbacks and commissions paid by investment products to directly align our objectives with yours – meeting your goals. Since there are no commissions accepted there is no financial incentive for us to pick one product over another.
However, this type of arrangement is not always available and/or practical. When appropriate we will accept commissions. Of course we are happy to disclose when you are purchasing a product that will pay us a commission.