Imagine Financial Services - Everything You Need to Plan For A Financially Secure Future

FAQ

DO YOU WORK WITH CLIENTS OUTSIDE OF CALIFORNIA?

  • Absolutely! I'm happy to work virtually via Zoom, Google Meets, etc. My business process includes technology that keeps me nimble. I use e-signature services, secure transfer of documents via my financial planning software RightCapital, and password-protected client account access.

IS THERE A FEE FOR THE INITIAL MEET & GREET APPOINTMENT?

  • An initial consultation known as a Meet and Greet is complimentary! I feel it's important to first get to know each other and see if we are a good fit. If we choose to move forward, financial planning fees (based on case complexity) or investment management fees (based on assets under management) will be clearly discussed.

DO YOU HAVE AN INVESTMENT MINIMUM?

  • I believe everyone deserves access to qualified advisory services. When someone comes to me seeking investment management, I want to encourage them to get started planning for a stable financial future, not turn them away to fend for themselves. I would prefer new investment accounts be opened with at least $500, but I understand some young professionals may just be starting on their financial journey so no minimums are required.

HOW CAN I LEARN MORE ABOUT GOOD MONEY HABITS?

I WANT TO GET STARTED, HOW DO WE PROCEED?

Demystifying Financial Terminology

 

Financial Jargon can be confusing and downright intimidating. Financial professionals often talk the talk and overwhelm clients with lofty financial terminology. Just because most of us use money every day (auto payments, debit cards, cash, credit cards), doesn't mean everyone understands all the jargon. I use electricity every day (I turn on lights, run the dishwasher, even operate a car that generates electricity), but I don't know the difference between amps and watts like an electrical contractor. I feel it is time to demystify financial terminology. Here is a glossary of frequently encountered financial terms:

 

Custodian 

A financial institution that holds client securities. Some familiar names include Charles Schwab, TD Ameritrade Institutional, BNY Mellon/Pershing, Fidelity, and LPL Financial.   

Fee-Only Advisor vs. Fee-Based - 

  • Fee-Only Advisors only receive service fees directly from their clients. They receive no referral fees or payments from financial institutions or insurance companies. 
  • Fee-Based sounds similar to Fee-Only Advisors, but in addition to the fees they charge, they can collect commissions and kick-back or referral fees. This can incentivize a fee-based advisor to recommend a certain product.

Fiduciary - 

A fiduciary acts on behalf of another. They must place their client's interests first. As a CFP® professional, I am held to the highest standard of care both in my heart and by the CFP Board which enforces the Code of Ethics and Standards of Conduct.

Certified Financial Planner™ / CFP® - 

These marks are only earned by those who have undergone rigorous education, thousands of hours of experience, and a cumulative proctored 6-hour final exam. To learn more check out the CFP Board websites https://www.cfp.net/ and  https://www.letsmakeaplan.org/

Holistic Financial Planning - 

A comprehensive financial plan addresses all domains of financial well-being and helps to prepare for the unknown. Holistic Financial Planning includes discovery and multiple solutions for short-term and long-term goals, tax, estate, debt management, insurance planning, investments, supported with ongoing consultation.

Project Planning - Target-specific questions/goals such as:

  • I can't figure out where my money seems to go?
  • Can I afford to purchase a new car/house?
  • When is the optimal age to begin taking Social Security?

Investment Management - 

Investment Management includes, but is not limited to portfolio diversification, asset allocation, performance reporting, and rebalancing to keep investments aligned with client risk tolerance and time horizon.

Stocks - 

Stocks represent fractional ownership of corporations. "Historically, they have outperformed most other investments over the long run"(Hayes, 2021). Stocks often pay dividends to shareholders.  

Dividends - 

Dividends are payments by profitable corporations to their shareholders. Companies usually make dividend distributions quarterly or annually. Dividends are paid at the discretion of the corporation and can be stopped or started when it is deemed beneficial. Payments can be made either in cash or in additional stock shares.

Bonds - 

Unlike stocks, bonds are not ownership, but instead, represent debt issued by a corporation or the U.S. federal government. Think of your car payment or your mortgage, these represent debt. Now, turn the concept around. Instead of you paying an interest payment on your car or mortgage; as a bondholder, you are the recipient of fixed interest payments. "At the end of the term, the borrower has paid back the principal of the debt, which is known as its face value, along with periodic interest payments"(Staff, T.S., 2021).

ETFs - 

Exchange Traded Funds (ETFs) are an investment that allows for easy low-cost trading and fund diversification. Instead of buying one stock, you can purchase a pool of stocks or bonds that meet your investment objective. Popular ETSs include index funds that track performance within a certain sector or asset class. ETFs can be bought and sold throughout the trading day.

Mutual Funds - 

Like ETFs, Mutual Funds are a pool of stocks or bonds; however, instead of being available to trade within the day, Mutual Funds are redeemed at the end of the day at NAV (Net Asset Value). "Investors buy mutual fund shares from the fund itself or through a broker for the fund, rather than from other investors. The price that investors pay for the mutual fund is the fund’s per-share net asset value plus any fees charged at the time of purchase, such as sales loads"(Mutual funds).

Market Index - 

A Market Index tracks the performance of a specific group of stocks or other asset classes. Think Dow Jones Industrial Average, also known as the Dow, S&P 500, or Wilshire 5000.

Dow Jones Industrial Average -  

The Dow tracks 30 U.S. blue-chip stocks. That's a pretty narrow perspective, so although the Dow makes a lot of headlines, other indices may give a more robust market review of stock market performance.  

Wilshire 5000 - 

In contrast to the Dow, Wilshire 5000 encompasses all U.S. stocks. The number of stocks changes over time as stocks enter and exit the market. "To be included in the Wilshire 5000, companies must be publicly traded and have their headquarters in the United States" (Tretina, 2021).

S&P 500 - 

The S&P tracks 500 U.S. stocks that are top performers. They represent large-cap stocks, "corporations with a market capitalization of $10 billion or more"(Ross, 2021).  It is considered, "one of the best gauges of prominent American equities' performance, and by extension, that of the stock market overall"(Kenton, 2021).

Russell 2000 - 

The Russell 2000 is in contrast to the S&P 500 in that it tracks small-cap stocks or those U.S. corporations that are considered to have small capitalization between $300 million and 2 billion.  

 

References

Hayes, A. (2021, December 16). What is a stock? Investopedia. Retrieved December 23, 2021, from https://www.investopedia.com/terms/s/stock.asp 

Kenton, W. (2021, December 22). The S&P 500 index. Investopedia. Retrieved December 23, 2021, from https://www.investopedia.com/terms/s/sp500.asp 

Mutual funds. Mutual Funds | Investor.gov. (n.d.). Retrieved December 24, 2021, from https://www.investor.gov/introduction-investing/investing-basics/investment-products/mutual-funds-and-exchange-traded-1 

Ross, S. (2021, December 7). What's the difference between small cap stocks and large cap stocks? Investopedia. Retrieved December 23, 2021, from https://www.investopedia.com/articles/markets/022316/small-cap-vs-mid-cap-vs-large-cap-stocks-2016.asp 

Staff, T. S. (2021, November 3). What are bonds and how do they work? examples & FAQ. TheStreet. Retrieved December 24, 2021, from https://www.thestreet.com/dictionary/b/bond 

Tretina, K. (2021, September 29). The wilshire 5000: Invest in the entire U.S. stock market. Forbes. Retrieved December 23, 2021, from https://www.forbes.com/advisor/investing/wilshire-5000/ 

 

Financial Planning is the alignment of your use capital with what you say is important to you