1. What is a CERTIFIED FINANCIAL PLANNERTM, CFP ®
These are certification marks owned by the Certified Financial Planner Board of Standards Inc. (CFP Board), which can help you identify financial planners who are committed to competent and ethical behavior when providing financial planning. All the advisors at Apex Wealth Management are CFP® Professionals.
Source: CFP Board of Standards, Inc.; www.cfp.net
2. Why use a CFP® Professional?
Most people think that all financial planners are "certified," but this isn't true. Anyone can call himself or herself a "financial planner."
Individuals certified by the CFP Board have taken the extra step to demonstrate their professionalism by voluntarily submitting to the rigorous CFP® certification process that includes demanding education, examination, experience and ethical requirements. These standards are called "the four Es," and they are four important reasons why the financial planning practitioner you select should display the CFP® certification marks.
Source: CFP Board of Standards, Inc.; www.cfp.net
3. How does the CFP Board's Code of Ethics Benefit me?
Through the Code of Ethics, CFP® professionals agree to act fairly and diligently when providing you with financial planning advice and services, putting your interests first. The Code of Ethics states that CFP® professionals are to act with integrity, offering you professional services that are objective and based on your needs. They are required to provide you with information about their sources of compensation and conflicts of interest in writing.
Source: CFP Board of Standards, Inc.; www.cfp.net
4. What is a Registered Investment Advisor (RIA)?
Depending on their size, investment advisors have to register with either the Securities & Exchange Commission (SEC) or the state securities agency where they have their principal place of business. For the most part, investment advisers who manage $100 million or more in client assets must register with the SEC. If they manage less than $100 million, they must register with the state securities agency in the state where they have their principal place of business. Apex Wealth Management is registered in the state of Texas.
For more information visit the Texas State Securities Board; www.ssb.state.tx.us/
5. What does it mean to be a 'fiduciary'?
All investors should have access to advice that is in their best interests. The authentic fiduciary standard legally requires an investment adviser to act, under the Investment Adviser Act of 1940, completely in their clients' best interest.
Those financial planners acting in a fiduciary capacity should adhere to the following standards:
• Put the client's best interests first
• Act with prudence; that is, with skill, care diligence and good judgment of a professional
• Do not mislead clients; provide conspicuous, full and fair disclosure of all important facts
• Avoid conflicts of interest; and
• Fully disclose and fairly manage, in the client's favor, unavoidable conflicts.
Source: The Committee for The Fiduciary Standard; www.thefiduciarystandard.org.
6. Aren't all financial planning professionals fiduciaries?
No. Many financial advisors earn commissions from the sale of various investment and insurance products. Often these products may be suitable, but not necessarily the best for you.
7. What does it mean to be 'fee-only'?
There are two fundamental ways that financial advisors are compensated: fee-only and commission. Fee-only simply means that all of an advisor's compensation comes solely from our clients. We do not earn commissions, rebates, finder's fees, bonuses, or any other form of compensation outside of what our clients pay us. We have chosen to do business this way so it aligns our compensation structure with our business philosophy.
8. What is Form ADV?
Form ADV is a document an investment advisory firm must file when it registers with a state securities regulator or the Securities and Exchange Commission (SEC). The two-part form provides detailed information about the firm's business. In part, the ADV form requires investment advisers to write, in plain English, a narrative brochure that contains information about the investment services offered.
9. Is there a cost for the first meeting at Apex Wealth Management?
The first meeting is an introductory session with no cost. You have an opportunity to evaluate us and we have a chance to determine how you can best benefit from our services.