Legal Disclosures

Important Questions You Should Ask

What is Reed Financial Planning?
Reed Financial Planning LLC is a personal financial planning firm registered with the State of Ohio (File Number OH-8045). Robert Reed works on a contract basis with his clients. His biography is online at Reedplanning.com.

What is a Registered Investment Advisor?
Anyone calling themselves a financial planner must be registered. A Register Investment Advisor is a fiduciary, that is, someone with the contractual obligation to serve clients fairly, honestly and with undivided loyalty. Fiduciaries are legally required to put their client’s interest first.

What does Reed Financial Planning LLC sell?
I sell personal finance advice about taxes, investments, insurance, pensions, retirement, estate planning and general financial matters. I do not sell financial products, accept commissions or referral fees.

Who do I serve?
Individuals.

Who can benefit most from my services?
Anyone who has financial worries or who wishes to plan prudently for their financial future.

How much money do you need to start a financial program?
I impose no minimum wealth requirements. People with limited financial assets have as much need of planning advice as do people with abundant assets. Indeed, I believe middle-income people need financial planning more because they can least afford costly mistakes.

What is a financial plan?
A financial plan is an in-depth review of your financial situation, taking into account your goals and objectives and focusing issues such as tax planning, asset management, estate planning, risk management and retirement. In sum, a personal financial plan organizes your financial life so it works to achieve your personal goals.

How much do I charge for planning services?
I charge an annual retainer fee based on income, assets, and complexity of the work. Occasionally, I work on a project basis.

Do I offer money management?
No. My clients always keep full custody of their money. Clients can, however, grant me limited power to make investment trades at their request. I work with any brokerage the client prefers.

Is the financial planning fee tax deductible?
Yes. Section 212 of the Internal Revenue Code permits an itemized deduction for tax and/or investment advice in the miscellaneous section of Schedule A. This deduction is now subject to a 2% floor of the adjusted gross income. A taxpayer who has their own business or rental property may be able to deduct fees on their Schedule C or E instead.

Do I sell financial planning products, such as investments, insurance, or tax shelters?
No. I am strictly a fee-only financial planner. Products must be purchased by clients from other sources. I will suggest investments you can make without paying commissions.

As we develop a financial plan together are you obligated to purchase recommended products?
Never. In fact, I encourage you to shop around for the best available product.

Do I only provide complete programs?
No. Occasionally I work projects that address a specific issue critical to the client.

Do I offer a tax service?
Yes. I believe income taxes are the focal point of most financial programs. Personal income tax preparation and planning is included under a retainer agreement.

Do I provide legal services?
No. I am not a lawyer.

What type of securities do I provide advice for?
Equity securities, warrants, corporate debt, commercial paper, bank products, municipal securities, mutual funds, US Government securities, options contracts on securities, partnerships and other financial instruments. I typically recommend mutual funds, US government securities, money market and bank accounts. In the course of providing investment advice, however, I address other types of assets that may be owned by the client. My investment strategy is based on long-term purchases, although short-term purchases may sometimes be required.

What method of analysis is used to analyze investments?
I do not use technical analysis or charting. I use a fundamental approach and look at factors such as economic ratios, earnings, industry outlook, politics (as it relates to the investment), historical data, price-earnings ratios, dividends, general interest rates, company management and tax benefits. My primary information sources are financial newspapers and magazines, research materials prepared by others, and annual reports, prospectuses and filings with the Securities and Exchange Commission.

Do I guarantee investment performance?
No.

Is client information kept confidential?
Yes. It is the law.

Once a plan is completed, does our relationship end?
It should not. Financial planning is a process, not an event. Retainer clients receive ongoing services, periodic reviews, and day-to-day consultation if requested.