FAQs

What is a CERTIFIED FINANCIAL PLANNER™ (CFP®)?

Licensed by the Certified Financial Planner Board of Standards, CFP® professionals must complete an advanced college-level course of study addressing financial planning subject areas, including insurance planning and risk management, employee benefits planning, investment planning, income tax planning, retirement planning, estate planning, and ethics. In addition, they must pass the comprehensive CFP® certification examination and obtain at least three years of full-time financial planning-related experience. To maintain the designation, CFP® professionals must complete 30 hours of continuing education every two years.

What is an M.S.F.S?

A Master’s of Science in Financial Services (M.S.F.S) degree is awarded to financial services professionals who have completed advanced coursework that gives them the tools, theory, and practical knowledge to engage in professional financial planning services and financial analysis. Many M.S.F.S. courses are certified by the CFP board to satisfy the requirements of the CFP® certification examination.

What is a Registered Paraplanner (RP®)?

Individuals who hold the RP® designation have completed a course of study encompassing the financial planning process, the five disciplines of financial planning and general financial planning concepts, terminology and product categories. These individuals also complete a three-month internship. Additionally, individuals must pass an end-of-course examination that tests their ability to synthesize complex concepts and apply theoretical concepts to real-life situations. Designees renew their designation every two years by completing 16 hours of continuing education, reaffirming adherence to the Standards of Professional Conduct and complying with self-disclosure requirements.

What is an Accredited Estate Planner (AEP®)?

The Accredited Estate Planner (AEP®) designation is a graduate level specialization in estate planning, obtained in addition to already recognized professional credentials within the various disciplines of estate planning. The AEP® designation is awarded by the National Association of Estate Planners and Councils (NAEPC) to recognize estate planning professionals who meet stringent requirements of experience, knowledge, education, professional reputation, and character.

What is an Accredited Investment Fiduciary® (AIF®)?

Advisors with an Accredited Investment Fiduciary® (AIF®) designation have successfully completed a specialized program on investment fiduciary standards and subsequently passed a comprehensive examination demonstrating their knowledge and competency in the area of fiduciary responsibility. AIF® designees are committed to standards of investment fiduciary excellence.

What is a Chartered Advisor in Philanthropy (CAP®)?

Advisors with the CAP® designation have completed specific coursework at the Irwin Graduate School of The American College in philanthropy, covering various impacts of planning for family wealth, charitable giving, and gift planning for nonprofits. The rigorous requirements include three graduate-level courses: Planning for Impact in the Context of Family Wealth; Charitable Strategies; and Gift Planning in a Nonprofit Context. Three-years of full-time, relevant business experience also is required, and designees must adhere to The American College’s Code of Ethics, as well as complete 15 hours of continuing education every two years in course work directly related to the material required to obtain a CAP® designation.

What is a Registered Financial Consultant® (RFC®)?

The Registered Financial Consultant (RFC) designation is awarded by the International Association of Registered Financial Consultants (IARFC) to financial advisors who meet the high standards of education, experience, and integrity required of its members. To receive the RFC® designation, an advisor must pass the IARFC’s examination and satisfy other requirements, such as having a degree in financial planning. RFCs must comply with the IARFC’s Code of Ethics and take continuing education courses to maintain the designation.

What is a Registered Investment Advisor (RIA)?

As a Registered Investment Advisor, KHC Wealth Management acts in a fiduciary capacity when engaged for comprehensive financial planning. Under the Investment Advisers Act of 1940, any firm that is engaged in the business of providing financial advice for a fee is considered to be an “investment advisor.” These firms are required to be registered with the appropriate federal or state agency. As such, KHC Wealth Management is registered with the Securities and Exchange Commission. Registration does not imply any level of skill or training. Unlike traditional stockbrokers, this means that we always put the interests of our clients ahead of our own interests when serving as your fiduciary.

What is Career Coaching?

Career coaching is a process of equipping people with the tools, knowledge and opportunities they need to develop and implement their career plans. The goal of career coaching is to empower people to use their internal strengths, resources and other assets in finding solutions to their career concerns. This may include transitions into new jobs or careers to meet long-term goals. Career coaching helps people to bridge the gap between where one is and where wants to be by engaging in a goal-oriented future and action-oriented process.

What is Executive Coaching?

Executive coaching is a one-on-one development process formally contracted between a professional coach and a management-level client to increase the client’s managerial and/or leadership performance. Executive coaching is aimed at inspiring leaders to make behavioral changes which transform themselves and the people around them, thereby increasing business results and performance.

What is a fiduciary?

Under the Employee Retirement Income Security Act (ERISA), a fiduciary is any person, company, or association that renders investment advice for a fee or other compensation with respect to the funds or property of a plan, or who has the authority to do so. A fiduciary exercises discretionary authority or control over the management of a plan or management of the disposition of its assets, or has the discretionary authority or responsibility in administering a plan. Importantly, a fiduciary is bound to always act in the best interests of the client.

Why is fee-only compensation of critical importance?

A financial planner who has a financial stake in the course of action that he or she recommends to a client faces an inherent conflict of interest and may not be considered objective and unbiased. This is true even if the planner truly believes that he or she has only the best interests of the client at heart. Unfortunately, the vast majority of financial advisors in the United States are sellers of financial products. Some or all of their income may be dependent upon their ability to steer their clients to a limited slice of the thousands of financial products available today. (Putting aside the conflict of interest factor, this limiting of choices in and of itself is often enough to impact the quality of the investment advice.) These advisors include stockbrokers, analysts, insurance agents, accountants, and attorneys, as well as some financial planners. Many of their clients are not aware of their advisors’ dependence on selling products, or else they do not recognize its significance.

What is your fee structure?

At KHC Wealth Management, our asset management compensation is 100% transparent, so you know exactly what we make and the value we provide. We charge a competitive asset under management (AUM) annual fee that is computed on the value of the assets we manage. Our comprehensive wealth management service includes an annual planning fee. Fees for career and executive coaching are charged on either a program or hourly basis.

Do you have a minimum account size?

While we do not have a minimum account size, we are happy to meet with you to evaluate your needs and recommend the most appropriate level of service.

How do I know my money is safe?

Our firm works directly with independent third-party custodians, Charles Schwab and Raymond James, and all of our client assets are held in protected Charles Schwab and Raymond James accounts. We provide 24/7 access and visibility to your accounts via our online client portal. Your funds never will be comingled with any other investments.

I consider myself to be financially savvy. Do I need a financial advisor?

Many people with the knowledge and experience to manage their own assets will procrastinate when it’s time to make a decision. Often their own needs take a back seat to jobs or family. We seek to add value not only by helping you develop a plan, but also by implementing and adjusting it when necessary. Our knowledge and accountability as a financial advisor can help you take the necessary actions to meet your goals.

 
 
 
 

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