FAQ

A: We best serve clients with at least $500,000 to invest; those who have saved that sum are generally above age 50. But we serve clients who meet that minimum no matter what their age.

A: Our relationships with clients are fee-based, meaning we charge an ongoing fee based on a percentage of the assets in your account. That fee is .25% of assets under management per quarter, for a total of 1% per year. We believe that charging fees rather than commissions best aligns our interests with those of the client.

Some financial advisors charge sales commissions when they buy or sell stocks or other investments for clients. We believe that approach can pose a serious confilct of interest for the advisor - tempting him or her to steer clients into the investment that pays the highest commissions, or to trade the holdings in their clients' accounts too frequently. 

A: While our business is built around the fee-based model, there are certain products for which it's not possible to charge fees. Fixed annuities, for instance, are designed so that advisors receive commissions, rather than fees, when they're bought for clients. We recommend such products only when they are absolutely the best alternative available for our clients. 

A: This is a question that we believe more clients of financial planners and advisors should ask. Your ongoing fee entitles you and your investments to continuing service and attention. Many financial advisors create financial plans and investment portfolios, but then leave them largely as they are for years or even decades. 

Financial Designs actively manages your investments: Our goal is not just to allow you to participate in market gains but also, and more importantly, avoid undue losses by incorporating a strategic sell strategy.

What's more, each of our clients receives what we call our Red Carpet Service, in which we provide a range of services including annual comprehensive financial reviews, detailed information about market trends, as well as client education and appreciation events.

A: We charge a fee of .25% quarterly, for a total of 1% annually.

A: Clients' assets are held by our custodial firm, SEI Private Trust Company (SPTC). SPTC is a special-purpose savings bank and a wholly-owned subsidiary of SEI Investments Company. SEI was founded in 1968 and is a global investment services firm which administers $394 billion (as of 12/31/09) in mutual fund and pooled assets.

As a trust institution, SPTC segregates your assets from its own assets and holds them as custodian. Assets held in accounts at a trust company are not assets for the trust company. Therefore, trust company creditors have no claim to such assets. All investments are held in the name of the investor at SPTC. 

A: Yes. The Securities investor Protection Corporation protects investors from financial harm in the event of a broker-dealer's failure. SEI, which custodies most of Financial Designs Corporation's client assets, is such a broker-dealer.

In addition, certain money market investments owned by our clients are insured by the Federal Deposit Insurance Corporation. However, investors are not insured against potential securities losses incurred by holdings of stocks, bonds, and other types of investments.

A: Maybe. The best way to gain certainty about when you can retire and what your standard of living will be in retirement is to let us lead you through our retirement planning process. We'll look at everything from your retirement goals to your assets to your life expectancy. That process is designed to give you clear answers and peace of mind about your future.

A: Careful planning with the help of a professional is the best way to ensure you'll have adequate income throughout your retirement. Financial Designs' retirement plans carefully take into account factors like income needs, life expectancy, and investment performance; we are also careful to leave a cushion in our projections to allow for inflation.

A: At a minimum, we like to meet personally with clients once a year. We also encourage clients to visit with us as frequently as they wish, to discuss life changes or any other matter related to their fiancial well-being.

A: SEI, the custodian for our clients' assets, will deposit your money directly into your bank account based on your instructions. Typically, retirees will opt for monthly deposits, although other arrangements are available.

A: In the event of emergencies, money can be wired into your account as quickly as the same business day.

A: Financial Designs is a true advisory firm. Brokers get paid for selling products, and we get paid for selling advice. As advisors, we have no financial interest in recommending one kind of investment over another.

What's more, advisors are held to regulatory standards that are generally considered to be more stringent than those that apply to brokers. Brokers must sell their clients only products that are "suitable." Advisors, on the other hand, are legally bound to act in their clients' best interests.

 

A: Holistic financial planning addresses the entire range of a client's needs. It's the opposite of selling clients products and solutions in a piecemeal way.

Financial Designs, a pioneer in holistic planning, takes pride in studying our clients' financial situations in depth and gaining a thorough understanding of their life goals. To help clients meet those goals, we design customized financial plans-and we never push any kind of investment or insurance in order to "make a sale".

A: Our clients have complete control: It's their money, after all. However, the majority of our clients expect us to handle their asset management in its entirety so that they can focus their energy elsewhere in their lives.

A: Financial Designs clients sign what's known as a limited power of attorney agreement, which allows us to make transactions on their behalf. When major changes are made to client's portfolios, they typically receive an e-mail containing a full explanation.

A: If getting rich quick through the stock market is your goal, Financial Designs is not the right partner for you. Our clients want to use the wealth they have earned or inherited to reach their retirement goals. They turn to us for help in ensuring their financial security for a lifetime. To be sure, aiming for good investment results can help provide that security but taking large risks in the hopes of earning huge returns can easily undermine your retirement goals.

A: Financial Designs is an active asset manager. Many asset managers keep most or all of their clients' money invested in the stock market regardless of whether it is rising or falling. We believe that approach puts investors' captial at needless risk.

We strongly believe in protecting our clients' captial. By continually adjusting our investment mix we can take advantage of opportunities as the markets change. But when market conditions grow too risky, we may move to protect your captial by temporarily transferring part or all of it into safe alternatives such as cash or money-market funds.

A: Click on the links below to see our investment results.

Trend Allocation Analysis

Page 2

Performance Disclosure  

Performance of our Trend Allocation Strategy is tracked daily and can be provided upon request.  

A: The high level of a national firm's profile doesn't have much to do with the actual service it delivers to clients. And in many cases, those firms' sheer size can be a drawback.

When individuals do business with big firms, they're technically the client, not of the firm, but of a particualr broker or advisor who uses the firm's resources. That's actually similar to how Financial Designs works. We partner with SEI, one of the nation's biggest financial firms, for access to investments, world-class research, technical support and other resources. That's why, when it comes to providing solutions, we believe we can stand toe to toe with anyone.

One of the things that we believe gives us an edge, however, is our stability. Brokers and advisors within the marquee firms frequently jump from one such firm to another, often in search of better compensation. That can be very inconvenient for their clients: they must choose whether to follow the advisor, and if they do choose to follow, they must move their assts and adapt to a new system for client services and other matters.

The leaders of Financial Designs are family (literally!). We've served our community for more than three decades. We're not going anywhere-we're squarely focused on understanding our clients' needs and providing them with the best service we can.

 

A: Yes. We do incorporate tax planning into clients' financial plans, and we are happy to work with your CPA and/or attorney.

A: Yes, Financial Designs clients have 24/7 access to account information online. Statements are securely mailed or e-mailed to clients monthly or quarterly, according to your preference, and are available through your online account as well.

A: Just provide us with a copy of your current statement. We'll handle all the paperwork related to setting up a new account and transferring existing assets.

A: You can examine any financial advisor's credentials and disciplinary history through the following agencies and organizations:

Securities & Exchange Commission

Phone: (800) 732-0330

Web site: www.sec.gov

Provides information on how to check out a broker or financial advisor.

Certified Financial Planner Board of Standards

Phone: (888) CFP-MARK

Web site: www.cfp-board.org

Allows consumers to ceck to see if their advosors have the CFP designation and also provides disciplinary histories for CFP designees.

California Department of Corporations

Phone: (213) 576-7650

Web site: www.corp.ca.gov

Provides licensing information and disciplinary histories for investment advisors doing business in the state.

Financial Industry Regulatory Authority

Phone: (800) 289-9999

Web site: www.finra.com

Provides disciplinary and work histories of indvidual brokers and brokerage firms.

North American Securities Administration Association

Phone: (888) 84-NASAA

Web site: www.NASAA.org

Provides contact information for every state securities division and information on avoiding fraud.

California Department of Insurance

Phone: (213) 897-8921 or outside Los Angeles (800) 927-HELP

Web site: www.insurance.ca.gov

Provides licensing and disciplinary histories for insurance agents and brokers.

National Assoociation of Insurance Commissoners

Phone: (816) 842-3600

Web site: www.NAIC.org

Provides links to insurance regulators in each state.

Investor Protection Trust

Web site: www.investorprotection.org

Provides links to other regulatory agencies as well as advice on how to invest wisely and check out investment advisors.

Disclosures:

Hyperlinks on this website are provided as a convenience and we disclaim any responsibility for information, services or products found on websites linked hereto.