Frequently Asked Questions
Click the questions below to jump to the answers:
- Who can benefit most from Connemara Groups’s financial planning services?
- Who would not be a good fit?
- Who is your ideal client?
- What is fee-only financial planning?
- How are you different than other planning firms?
- Do you manage investments?
- How much is this going to cost me?
- What is a fiduciary and why is it important?
- Why pay for financial planning when others offer to do it for free?
- Once I have a financial plan, will our relationship end?
- What’s the difference between fee-based and fee-only?
- Do you work with clients who are out of state?
- How do I get started?
Who can benefit most from Connemara Groups’s financial planning services?
Connemara Group is a good fit for those who are confident in their own abilities yet refreshingly unpretentious and fully aware of their own unique gifts and limitations.
We find that the best clients are already doing the right things. These individuals find it hard to stay current, however, as a result of busy careers, families, and outside interests. They appreciate having someone experienced and trustworthy who can review things periodically and who has access to planning software to help them stay on track.
Clients include affluent young and mid-career professionals; executives in the private, public, and not-for-profit sectors; and federal as well as private pre-retirees and retirees.
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Who would not be a good fit?
Individuals who spend more than they earn or struggle with debt. Day traders or stock pickers looking for a brokerage-type relationship. Individuals who want to delegate all financial decisions and desire a “high-touch” relationship with their advisor.
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Who is your ideal client?
Read about a featured client and her sustainable fashion business for women.
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What is fee-only financial planning?
Fee-only financial planners bearing the Certified Financial Planner (CFP®) designation as well one or more recognized professional designations (e.g., attorney, CPA) are committed to upholding the highest industry standards. These planners provide investment advice as registered investment advisor representatives registered either with the Securities and Exchange Commission (SEC) or the states pursuant to the Investment Advisors Act of 1940 as well as additional applicable federal and state laws, rules, and regulations.
Truly comprehensive, strictly fee-only planning looks at a client’s entire balance sheet – assets as well as liabilities – and helps the client gain a firm understanding of various holdings as well as potential risk exposures. Qualified practitioners may examine various related legal, tax, investment, and other issues. Planning is a continuous process subject to many changes, but a sound plan should have at its foundation a strong core.
Fee-only planning practitioners charge a flat (fixed) fee or hourly rate for their services, or they may charge a fee based upon a percentage of assets under management (AUM).
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How are you different than other planning firms?
Connemara Group is unlike many Washington, DC fee-based financial planning firms where compensation may include commissions or incentive payments. Connemara is also unlike most fee-only financial planning firms in Washington, DC, Montgomery County, Maryland, and Northern Virginia in that it does not set recurring fee or AUM (assets under management) minimums. You pay for our planning time. We receive no commissions, referral fees or any other hidden fees – so you can be sure our advice is objective.
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Do you manage investments?
Most clients implement our investment recommendations through Vanguard, Fidelity or other brokerage relationships. Self-implementation allows these clients to significantly reduce ongoing asset management fees.
Certain clients may truly be in need of asset management services, however. Busy executives and families of considerable wealth may prefer to delegate all asset management responsibilities. Other clients may experience a need for such services in the future due to death, disability or other life events. For these clients, we offer highly competitive asset management services at institutional pricing using Vanguard and DFA funds and individual taxable or tax-exempt bond portfolios where appropriate ($2 million relationship minimum). Please inquire about these capabilities if you are interested.
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How much is this going to cost me?
We aim to be as transparent as possible; the value of fee-only is that there are no hidden costs, because we don’t receive commissions. Use our fee calculator to get an idea of costs based upon your unique needs.
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What is a fiduciary and why is it important?
A fiduciary advisor is under oath to always avoid conflict of interest and operate with full transparency. In contrast, as the law currently stands, broker dealers, insurance salespersons and advisors operating under the “suitability standard” are merely required to ensure an investment is suitable for a client at the time of the investment. Connemara Group operates under the fiduciary oath and adheres to the Institute for the Fiduciary Standard’s Code of Conduct to ensure our clients’ best interests are always protected. We have been and will always be fiduciaries.
Recently John Oliver produced a video highlighting the difference in his irreverent comedic style. It is posted below.
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Why pay for financial planning when others offer to do it for free?
When compensation includes commissions or incentive payments, fee-based firms often discount or treat planning as a loss leader. This could result in recommendations that are influenced by how much money can be earned over time. Fee-only planning takes this conflict of interest out of the equation.
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Once I have a financial plan, will our relationship end?
After the initial engagement, clients may choose between a regular review process including four (4) quarterly 15-30 minute teleconferences together with a detailed Annual In-Person Review; or periodic Follow-Up In-Person Reviews conducted on a client-driven, as-needed basis. Since a significant amount of work is done up-front, costs are much lower to review or update a particular aspect of your plan.
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What’s the difference between fee-based and fee-only?
Stop guessing. Start knowing. Get started.
Do you work with clients who are out of state?
Yes, we work with out-of-state clients and comply with any varying state laws.
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How do I get started?
We can already tell that you might be a good fit, because you are the type of person who is educating yourself. Since we are not interested in selling, we take the time to get know you and make sure you understand how we would approach your unique situation. This requires some effort, but we have found that it is the best way to make sure you get what you are looking for – even if it means we refer you to a different planner.
We offer a complimentary Get Acquainted Meeting to give you enough information about how we think and operate for you to then confidently decide if Connemara Group would be a good fit for the specific type of personal financial planning and investment advice you’re seeking.
This meeting will last approximately 60-75 minutes. Your completing a confidential online questionnaire prior to this initial meeting will help us to prepare for a thought-provoking conversation. Your individual needs, preferences, and expectations will be discussed so that we can be sure we clearly understand your goals and values.
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