How We Work Together

If you’re new to financial planning or new to Carpe Diem Financial, here’s what to know about working with a financial planner. I’ll discuss why having a fee-only fiduciary is key, the core values that extend beyond financial services like empathy and trust, and the seven-step process we take you through from start to finish. 

Our Fees as Fiduciaries to the Middle Class

Our advice is golden; it is not just a “loss leader” and professionals must charge for it because their advice makes the difference between success and failure. Carpe Diem charges clients only retainer fees, not pricy investment commissions or AUM fees that work well only for large clients with expertly managed aggressive portfolios. I was appalled to see a fixed income client with a bond portfolio pay over ten percent of her income to AUM fees. Quarterly retainer fees allow us to do planning as an ongoing process, avoiding biases against realty and business investing, 401k investing or even mortgage repayment.  To serve the Santa Cruz Mountains middle class, we generally set retainer fees or hourly charges far lower than typical AUM or commissions — and we throw in the tax preparation!  Be wise to grow wealthy and healthy.

Our Process

Based on the CFP Board’s seven-step financial process.

1. Understand the Client’s Personal and Financial Circumstances

We meet over tea in a confidential and comfortable environment—and there certainly is no charge for the initial meeting.  I’ll ask background questions to understand your needs, goals, and life circumstances.  We start by knowing each other as people and hopefully future friends who have the highest levels of confidence in each other.   Empathy is our goal and affirmation our practice.  Without understanding the client’s personal and financial circumstances, we would have no clue what personal and financial resources could be mustered to realize dreams. After we agree upon terms of engagement, we proceed.  Your experience comes first:  “What would you most like to accomplish in our time together?”

2. Identify and Select Goals

We usually schedule a second meeting to identify and select goals; the planner, freeing clients from temporary anxieties, helps you refine and envision goals for a life richly yours; following the life planning visionary, George Kinder, you will know when we have “lit the torch” in your heart.

3. Analyze the Client’s Current Course of Action and Potential Alternatives

On our own, but with questions, we analyze the client’s current course of action and evaluate for alternative possibilities. We seek the usual financial documentation to proceed into sound advice towards financial statements: bank and brokerage statements, wills and trusts, insurance policies, business, P&L statements, etc.  In addition, we seek money history, and risk tolerances and calendars may be just as important as we plot dreams realized.

4. Develop the Financial Planning Recommendations

Prescription without diagnosis is malpractice.  Only at this point can we develop the financial planning recommendations based upon our extensive experience in business and finance and Master’s level education in life planning.

5. Present the Financial Planning Recommendations

When all is well, we meet again to present the financial planning recommendations.  My presentations balance humor and seriousness, and compassion and wisdom illustrated with a balance of pictures, graphs, and numbers.  As Kinder described, we relight your torch and together overcome impediments for “the heart’s core to be realized.”

6. Implement the Financial Planning Recommendation

We may work with your team of professionals to implement the financial planning recommendations.  Lawyers may redraw trusts as insurance agents adjust policies and custodians trade funds for superior portfolios.  SIPC insured Shareholders Service Group helps this RIA with funds held ultimately with the Bank of New York Mellon—the world’s largest custodian of investment funds.

7. Monitor Progress and Update

Monitoring progress and updating is our final and lifelong practice and 90% of our life work falls into this category.  Your values will change with conversation, time, and resources.  Planning is a process and not a product, and long-run we spend most of our time together understanding you better, coaching you to succeed in diverse ways and leading you to a life of integrity and fulfillment.

Now that you know what to expect from your financial planner, keep reading to learn more about what financial planning actually is.