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FINANCIAL PLANNING FOR EVERYONE
There are three major misconceptions with respect to financial planning:
- Financial planning is only useful to high-income/high-net-worth clients,
- Only high-income clients can afford it, and
- Financial planning is all about investment advice and wealth management.
In reality, everyone will need financial planning services at some point in their lives. And most will need it at several different points during their lives. That's because, as your life's circumstances change, your financial plan should follow. You won't have the same needs when you're single and in the corporate world that you will with a spouse and two children who will be off to college in a few years.
A comprehensive Financial Plan considers seven basic areas:
- Retirement
- Investments
- Income taxes
- Cash flow
- Debt management
- Education needs
- Risk management (life,health,casualty,disability insurance)
Within these broad areas are numerous subsets, such as 529 plans, anticipated transactions with tax implications, or working with a low FICO (credit) score.
As you see, there are many considerations that go into creating your comprehensive financial roadmap — one that will help you reach your goals without major obstacles that make you lose time and money.
INVESTMENT ADVISORY SERVICES
As a registered investment advisor, Creasman is held to the high standard of placing the interest of every client above all other interests, including its own. And as a fee-only firm, our commitment is to find the most appropriate investment options for each client, based on their particular needs. We collect no commissions on the products we recommend. Here's how we do business:
Our Philosophy
A client's financial plan is a collaborative effort, whether it's a long or short-term strategy.
We listen to the client's story: his plans for retirement; her plans to start a business; or their plans for their children's education. And we assess attitude towards risk.
We encourage clients to get financial check-ups: to review with us their plan and their investments as circumstances change in their lives.
We maintain constant vigilance with your investments. That is the hallmark of our service to you.
Adaptation is Key
Not only do we make recommendations to you, but we also review the way we do business when circumstances dictate that our strategy must change in order to protect your investments. Recent events in the market have shown us that historically reliable ways — such as diversification — to manage portfolio volatility was no longer the safeguard it once was. As all asset classes plummeted in 2008, we adopted new methods to stabilize our clients' portfolios. If the market should return to its traditional patterns, we will adapt again.
Other Services & Strategies
Creasman assists clients in the allocation of their 401(k), 403(b) and 457 account balances and future allocation of employee/employer deferrals and contributions. We look at these holistically, taking into consideration factors such as a spouse's different plan or a non-qualified portfolio. This type of coordination ensures that all investment types complement each other for a more balanced portfolio.
We are a fee-only firm. All Creasman services are provided on an hourly fee basis. We've found that this rate structure is most fair to clients, eliminating any tendency towards tipping the scales in favor of larger fees based on assets or commissions.
The first meeting is usually an information-gathering session for both parties. We want to be sure that we understand your goals and, because we feel that a good financial planner is also an educator, we want you to be comfortable that your questions and concerns are answered.
Clients are given a quote of the amount before any services are provided.
Creasman provides ongoing portfolio management for clients in addition to investment advice. Nonqualified portfolios (i.e., portfolio income is taxed currently) are held in custody at Schwab. The portfolio daily activity is downloaded from Schwab's mainframe to Creasman's secured computer system.
Qualified portfolios (IRAs, 401(k)s, Profit-sharing, etc.) are held in trust by Lincoln Trust, a Colorado-based Trust company. Lincoln Trust clients are assigned a PIN, which allows them to view their accounts 24/7, 365 days a year. For increased diversification and security, Creasman also has access to alternative investments through Lincoln's platform. Clients may establish self-directed IRA and 401(k) plans. These self-directed plans allow for investments in real estate tax liens, mortgages, businesses and other alternative assets that the client chooses.
Portfolio management services are charged on an hourly fee basis, but sometimes a retainer fee arrangement is best. Creasman does not charge a fee on the basis of "assets under management." (See Our Fees, above.)
INCOME TAX PLANNING, PREPARATION AND REPRESENTATION
Income tax knowledge is an important aspect in all areas of financial planning. Assessing possible tax implications in your financial plan is critical to the success of that plan. There should be no hidden surprises down the road.
Mike Creasman, president of Creasman 401(k) Adviser, Inc., is a federally authorized tax practitioner — an Enrolled Agent. Federally authorized tax practitioners (CPAs, attorneys and Enrolled Agents) are allowed to represent clients at every administrative level before the Internal Revenue Service.
Mike is qualified to give advice that ranges from the simple tax issues most people face, to the very complex, which most often affects high-net-worth clients.
He is preparing to sit for the United States Tax Court examination, to be administered in November 2010. Passage of this examination allows non-lawyers to represent clients in limited cases. If successful, Mike will be allowed to represent clients before the Tax Court in the small-cases division (those that involve no more than $50,000 in dispute). See who we are for additional information about our qualifications.
QUALIFIED PLAN DESIGN
Employers have used Qualified Plan Designs to:
- Reward employees
- Lower their turnover rates
- Recruit & retain good employees
When small businesses are ready to offer retirement planning options to their employees, they often look to professionals to design, implement and manage these contributions.
As a retirement plan designer and registered investment advisor, Creasman 401(k) Plan Advisers carefully conducts a study of the business in terms of:
- Retirement plan objectives
- Employee demographics
- The business's financial capacity to fund a variety of plan options
Creasman develops options and presents performance projections for each based on the company's unique situation. The goal is to design an efficient plan that fits the company's criteria and maximizes allocations to owners and top management.
Current Retirement Plans and Tax Law Changes
Any retirement plan designed prior to 2002 should be reviewed in light of various tax law changes brought about by EGTRRA of 2001. Also, many more plan options are now available than before, such as:
- Age-weighted plans
- New comparability plans
- Safe harbor 401(k) plans
- 401(k) plans for one-member businesses
These plans now have greater flexibility and can be designed to enable owners to defer greater amounts of their salaries and receive greater allocations.
Creasman partners with Lincoln Trust Company, a Colorado Trust that serves as non-discretionary trustee and plan administrator, at very reasonable rates. Lincoln provides retirement plan services to all plans regardless of the size of the asset base — from start-ups to those with millions in plan assets. Plan participants have 24/7 access to their accounts via the Internet or Telephone Voice Response Unit (VRU). Lincoln handles all Internal Revenue Service and Department of Labor compliance issues.
Creasman charges an hourly, fee only rate, which is quoted at the time of the engagement and payable at the establishment of the chosen plan.
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