Disclosure - Information Profile
INTRODUCTION
Advisors Financial, Inc. is a financial planning firm registered as an Investment Adviser with the
State of Virginia in accordance with the requirements of the Investment Advisers Act of 1940, as
amended (Advisers Act) effective July 8, 1997. The firm provides broad-based financial
planning and investment advisory services for its Clients, which often includes a written report
of financial recommendations. Certain financial planners associated with Advisors Financial,
Inc. (the "Advisor") are registered representatives of Cadaret, Grant & Co., Inc., a broker-dealer
firm in Syracuse, New York, and may receive compensation in the form of brokerage fees for
their services rendered in connection with the implementation of securities advice recommended
by the Advisor.
Persons associated with the Advisor may receive separate and standard compensation for
insurance transactions resulting from the purchase of life or health insurance and in the form of
fees in conjunction with Cadaret, Grant & Co., Inc.'s Registered Investment Advisor.
Advisors Financial’s method of security analysis is generally not one of fundamental, technical,
or cyclical analysis or charting of individual securities. The Advisor provides investment advice
on a broad basis, typical to traditional financial planning. For example, in the event that a client
has a heavy concentration of one type of securities in his or her investment portfolio, Advisors
Financial is most likely to recommend prudent diversification and the use of professional
management (such as money managers and/or mutual funds.) With every client, Advisors
Financial considers the client’s risk tolerance and short and long-term financial goals in
presenting investment recommendations. Except for AFI Investment Supervisory Services, the
choice of the specific securities to be purchased or sold is ultimately made by the client. The
Advisor's services are designed to help you:
- Set your goals and objectives and assign dollar values to them
- Assess your current financial situation, and your tolerance for risk
- Consider the income tax, cash flow, and estate planning ramifications of various planning alternatives
- Choose an investment strategy which will help you accomplish your goals and objectives
- Adjust your planning methods in accordance with the changing economic environment
Investment strategies recommended may involve either long or short-term purchases, according
to the needs of the Client. The firm does not generally recommend strategies which involve
short sales, margin transactions, option writing, or trading (securities sold within 30 days).
Advisory services are provided to individuals, corporations, pension and profit sharing plans,
trusts and estates. The Advisor provides financial planning and investment advice for any size
account; there is no minimum or maximum account value which is required.
SERVICES
Advisors Financial, Inc. offers four basic advisory services:
- Coordinated Financial Planning
- Continuing Advisory Services
- Hourly Consultations, for family of clients and by special arrangement
- AFI Investment Supervisory Services
Roughly 43 percent of the firm’s total advisory business is represented by investment advisory
services, 8 percent by hourly consultations, and 49 percent by coordinated financial planning and
continuing advisory services.
1. COORDINATED FINANCIAL PLANNING
The primary service offered by Advisors Financial, Inc. is the provision of coordinated financial
planning. The Advisor's initial service consists of a review of the Client's total financial
situation, which generally includes a personal fact-finding interview, and the preparation of a
coordinated, individualized, written financial plan. This report will contain treatment of all or
some of the following areas: current financial status (including financial statement, cash flow
statement and pro forma tax returns), income tax planning, cash flow and debt management,
education funding, investment planning, retirement planning, risk management, estate planning,
and corporate planning. Following the presentation of the financial plan, the Client is given an
"Action Item List," which summarizes the actions necessary for the implementation of the
financial plan. This concludes the services provided under Coordinated Financial Planning.
The Advisor's services include recommendations of specific methods to save income taxes, to
improve cash flow, and to make investments that will help the Client to attain his or her financial
goals. At all times, careful attention is paid to the individual Client's goals and level of risk
tolerance.
2. CONTINUING ADVISORY SERVICES
Under a separate Advisory Services Agreement, continuing advisory services are provided for a
period of one year. During the term of the advisory agreement, the Advisor reviews Client
accounts periodically in response to significant changes in conditions (for instance, a major
change in relevant securities markets or the tax laws), and in response to requests from the
Client. The review is focused upon specific areas of the Client's financial or investment situation
and does not involve a comprehensive review of the financial plan. Throughout the year,
Advisors Financial, Inc. also notifies Clients about new investment opportunities, major changes
in financial markets, proposed revisions in the tax laws, and other developments which are
material to the Client's financial situation.
Continuing Advisory Services will provide a written "Annual Review" which may include the
following, as applicable:
- Review of Assets and Liabilities
- Review of Cash Flow
- Income Tax Planning
- Review of Insurance
- Review of Estate Planning
- Review of Plan Progress
3. HOURLY CONSULTATIONS
Under special circumstances (i.e. family members of clients), the Advisor may choose to provide
services on an hourly basis. In this case, the response will be provided in a personal consultation
with the Client or a written report, or both, in accordance with the desires of the Client, and the
response will be limited to the area requested.
The Advisor will provide investment recommendations for the assets in pension/profit-sharing
plans. The Advisor will review the structure and content of the investment portfolio and make
recommendations regarding adjustments that the Advisor feels are appropriate. After the
implementation of the investment portfolio, the Client may engage the Advisor to review the
portfolio. The Advisor recommends that the portfolio be reviewed at least annually.
4. AFI INVESTMENT SUPERVISORY SERVICES
AFI ISS is an asset allocation system offering multiple institutional level asset allocation
strategists. This fee based program employs mutual funds, exchange traded funds and/or
privately managed accounts of individual securities as the investment vehicles. The minimum
investment required in the mutual fund program is $50,000, and $100,00 for exchange traded
funds. The minimum investment required in the individual securities program is $100,000.
Discretionary purchases are limited to AFI Investment Supervisory Services. Advisors Financial
will provide the specific advice to the client concerning the choice of Strategist and the particular
asset allocation model to be chosen for the Client. Advisors Financial and/or the client will
retain discretion to choose the Strategist, the asset allocation model and the mutual funds for the
client's account, and will have the opportunity periodically to rebalance the portfolio, and to
change investment components or asset allocation models, in accordance with Strategist
rebalancing decisions or otherwise. For further information, and for the fees associated with this
program, please see the Advisor’s Schedule H brochure.
FINANCIAL PLANNING AND INVESTMENT ADVISORY FEES
The Advisor offers Coordinated Financial Planning, Continuing Advisory Services, Hourly
Consultations, and AFI Investment Supervisory Services. All fees for planning and advisory
services will be clearly stated in an Investment Advisory Agreement executed by the Client and
Advisor before services are rendered. Either party may terminate an Investment Advisory
Agreement upon five days, written notice, and a refund will be made for the value of any
services paid for but not yet rendered.
The Advisor and associated persons may recommend Cadaret, Grant & Co., Inc. for traditional
brokerage services. The Advisor does not determine the commission rates for the purchase of
mutual funds. Commission rates for the purchase of individual securities is negotiable. The
Client may retain any other broker for plan implementation.
The Advisor, in seeking to obtain best execution of portfolio transactions for the advisory
account, takes into account factors such as price, the brokers reliability, commission rate, value
of research provided, and responsiveness to the money manager. The client acknowledges that
the advisor is affiliated with Cadaret Grant & Co., Inc., a registered broker dealer, and can
execute transactions through Cadaret Grant & Co., Inc., consistent with the advisor’s duty of best
execution. The overall reasonableness of brokerage commissions paid is determined based upon
the quality of execution of the services performed and of the research or trading services
provided.
The Advisor uses such services for the benefit of all the Advisor’s clients, including clients
whose securities transactions are not effected by the broker providing such services. Brokerage
commission rates in the U.S. are not fixed by any authority, but are subject to negotiation. A
client may direct the Advisor in writing to use a particular broker or dealer to execute all
transactions for client's account. Otherwise, the Advisor generally uses Cadaret Grant for trade
executions. The commission rates for certain customers may be higher or lower for identical or
similar transactions, had they been executed at other broker/dealers, especially discount brokers.
Fees paid by the client to the advisor are separate and distinct from any fees and expenses that
may be charged by mutual funds.
If the Client engages the Advisor for Continuing Advisory Services, or Hourly Consultations,
then all representatives in their capacity as registered representatives of Cadaret, Grant & Co.,
Inc., a broker-dealer firm, may implement securities purchases throughout the duration of the
contract year. Life and health insurance purchases can also be implemented by all licensed
representatives. In addition to advisor fees, Advisor representatives will receive compensation
in the form of brokerage fees for securities transactions, insurance commissions for the sale of
life and health insurance, and investment advisory fees for AFI Investment Supervisory Services.
Fees are also obtained from other registered investment advisors who furnish asset management
services to certain Clients.
Coordinated Financial Planning
The Advisor’s fees for Coordinated Financial Planning are billed based on the number of hours
necessary to complete the Coordinated Financial Planning process. This process includes the
following:
- Fact Finding Meeting
- Plan Analysis and Design
- Presentation of the Financial Plan
- Presentation of an "Action Item List"
Advisor’s current hourly rates range from $250 per hour to $350 per hour for Ms. Kaplan's time.
Paraplanner’s current hourly rates range from $175 - $225 per hour. Administrative personnel’s current hourly rates range from $120 to $150 for computer data input and $90 to $125 per hour
for special administrative projects (such as re-titling assets). From time to time, these rates will
change, reflecting trends in the cost of providing financial planning services or the advancing
status of someone within the firm. Advisor will apprise the Client of any changes the Advisor
makes in the hourly rate structure through the annual offer to receive an “Information Profile.”
Billable hours generally range from 25 to 40 hours per case; complex cases may take longer.
The minimum charge for Coordinated Financial Planning is $4,000.
A professional relationship suggests that fees reflect, among other factors, the number of Advisor
hours incurred, the difficulty of the project and the result obtained for Client. In accordance with
the foregoing, advisor’s professional fees initially are determined by hourly rates, which vary
according to who has worked on the particular matter.
While most of the fees of the Advisor are computed based upon the actual time incurred, the
Advisor, in accordance with our policy, reserves the right to make upward or downward
adjustments in fees, depending upon the nature and complexity of the project and other factors.
Fees for special services may also be charged. This is typically charged at the hourly rate
described above. Additional charges for outside consultants or direct expenses may be applied
where appropriate. These charges are billed at the Advisor's cost.
The Client pays 50 percent of the fee at the fact gathering interview and 50 percent at the follow
up meeting. If the Client terminates the agreement or fails to provide information necessary to
complete the plan, a refund will be made for the value of services paid for but not yet performed.
Continuing Advisory Services
Following the completion of Coordinated Financial Planning services, the Client may elect to
enter into a new Continuing Advisory Services Agreement. Fees for this service are composed
of an investment advisory fee and a financial planning fee.
The investment advisory fee for Continuing Advisory Services will be a maximum of 1% of the
total investable assets. In addition, the Advisor may charge a financial planning fee. The
combined minimum annual fee is $4,000. Under certain circumstances, this fee structure may be
adjusted, depending on the needs of the Client.
The Client may elect to have representatives, in their capacity as registered representatives of
Cadaret, Grant & Co., Inc., or in their capacity as licensed life and health insurance agents,
implement securities or insurance purchases as described above.
Hourly Consultations
Under special circumstances (i.e. family members of clients), the Advisor may choose to provide
services on an hourly basis. A General Advisory Services agreement must be signed and fees
will be charged at an hourly rate. Advisor’s current hourly rates range from $250 per hour to
$350 per hour for Ms. Kaplan's time. Paraplanners current hourly rates range from $175 to $225
per hour. Administrative personnel’s current hourly rates range from $120 to $150 for computer
data input and $90 to $125 per hour for special administrative projects (such as re-titling assets).
From time to time, these rates will change, reflecting trends in the cost of providing financial
planning services or the advancing status of someone within the firm. Advisor will apprise
Client of any changes Advisor makes in the hourly rate structure through the annual offer to
receive an “Information Profile.”
If the Advisor is in receipt of investment statements, correspondence, legal documents and/or
any items that are specific to the monitoring of an hourly consultation of a client’s financial
situation on an ongoing basis, a yearly administrative fee of $400 will be charged to the client in
order to review, file, record and maintain such records. This would include, but is not limited to,
telephone consultations, preparation for client meetings, client meetings and administrative
tasks.
Client agrees to pay for financial planning services at current rate schedules for time spent on the
services rendered to Client’s matter. A professional relationship suggests that fees reflect,
among other factors, the number of Advisor hours incurred, the difficulty of the project and the
result obtained for Client. In accordance with the foregoing, Advisor’s professional fees initially
are determined by hourly rates which vary according to whom has worked on the particular
matter.
While most of the fees of Advisor are computed based upon the actual time incurred, Advisor in
accordance with our policy, reserves the right to make upward or downward adjustments in fees,
depending upon the nature and complexity of the project and other factors.
The Advisor maintains a daily log of hours spent monitoring the Client's financial situation.
When the work is completed, a bill is rendered.
The Client may elect to have all representatives, in their capacity as registered representatives of
Cadaret, Grant & Co., Inc., or in their capacity as licensed life and health insurance agents,
implement securities or insurance purchases as described above.
TERMINATIONS
After the initial fee is paid, either party may terminate an Agreement upon five days’ written
notice to the other. A refund will be made for the value of services paid for but not yet
performed, if any.
Thereafter, agreements may be terminated at any time by either party upon receipt in writing
giving notice of such termination. Fees will be prorated to date of termination and any unearned
portion of prepaid fees will be returned to the Client.
SEMINARS AND WORKSHOPS
Advisors Financial, Inc., presents informative seminars and workshops on general topics such as
income tax saving strategies, budgeting, debt management, investment planning, risk
management, and estate planning. These educational sessions help participants understand
general principles regarding a certain subject. Half-hour followup interviews are offered to each
participant at no charge.
VARIETY OF INVESTMENT DEVICES
Advisors Financial, Inc., considers virtually all investment devices in providing investment
advice to Clients, including equity securities (both over-the-counter and exchange-listed
securities), warrants, bonds, and other corporate debt securities, commercial paper, certificates of
deposit, municipal securities, investment company securities (including variable life insurance,
variable annuities, and mutual fund shares), U.S. government securities, options contracts on
securities and interests in partnerships involving real estate, and oil and gas interests. If a
financial planner associated with the Advisor purchases securities recommended to Clients or
conducts personal securities transactions inconsistent with advice given to Clients, these facts
will be disclosed to Clients. Neither Advisors Financial, Inc., nor its planners, buy or sell
securities from or to Clients, recommend that Clients purchase or sell securities in which the firm
or its planners have a financial interest, or act as a broker or agent for a third party in the
purchase or sale of Client securities.
Certain financial planners with Advisors Financial, Inc. are registered representatives of Cadaret,
Grant & Co., Inc., Syracuse, New York. These individuals may be retained by clients to effect
securities transactions, which implement the Advisor's investment advice, and the Advisor may
receive compensation in the form of brokerage commissions for securities transactions executed
on behalf of clients. This relationship and commissions earned are disclosed to clients. No
client is under an obligation to retain a planner associated with the Advisor to complete
securities transactions. The Advisor and its planners will fully cooperate with any other broker
retained by a client to implement the financial plan and execute securities transactions.
Occasionally, a financial planner of the Advisor purchases or sells securities which are
recommended to a client. If a financial planner associated with the Advisor purchases securities
recommended to clients or conducts personal securities transactions inconsistent with advice
given to clients, these facts will be disclosed to clients.
SOURCES OF INFORMATION
Advisors Financial, Inc. relies on a wide variety of information from numerous publicly
available sources to provide sound investment advice and financial recommendations to Clients.
The Advisor's planners carefully review and analyze financial and general circulation
newspapers and magazines, financial and tax newsletters, sales literature on investments and
prospectuses, and research guides, including Financial Planning Magazine, Journal of Financial
Planning, Kiplinger Tax and Washington Letter, Morningstar Mutual Funds, Stocks & Variable
Annuities, the Independent Advisor for Vanguard Investors, Value Line, Fidelity Insight, The
Wall Street Journal, and The Washington Post.
THE FIRM
Advisors Financial, Inc., was incorporated on October 2, 1985, under the laws of the
Commonwealth of Virginia. Certain of the Advisor's planners who give investment advice are
registered representatives with Cadaret Grant & Co. Inc., a broker-dealer firm based in Syracuse,
New York. Thus, a Client has the opportunity to work with the same individual in developing
and implementing a financial plan, although every Client is always free to choose an
independent broker-dealer to implement his or her plan. If one of the Advisor’s planners
conducts securities transactions to implement investment recommendations made to the Client
by the Advisor, the affiliate may receive additional compensation for such implementation.
All of the Advisor's planners who provide Clients with financial planning advice must have
received the Certified Financial Planner™ designation or they must have at least one year of
financial planning experience. These planners work under the supervision of the principal of
Advisors Financial, Inc.
Jocelyn Kaplan, CFP
Jocelyn Kaplan is a Certified Financial Planner and President of the
financial planning firm, Advisors Financial, Inc. (AFI). She directly assists Clients in the
development of personalized financial plans and their implementation.
Born April 23, 1952, Jocelyn is a native of New York. She served as Planning Director of
DeSanto Naftal Advisory Service, Inc. from 1983 through 1985, after gaining seven years of
experience in the financial services industry through financial planning with the McLean
Financial Group and Reutemann & Wagner, and through insurance sales with Principal Mutual
and other companies. She earned her Bachelor of Science Degree in Communications from
Northwestern University, and her Certified Financial Planner™ designation in 1982 from the
College for Financial Planning in Denver, Colorado. Jocelyn holds life, health, and variable
annuity licenses and is a Registered Investment Adviser Representative.
Ms. Kaplan was named in “Who’s Who of Financial Planners” in the December 2002 and
October 1994 issues of Washingtonian magazine, and she is included in Who’s Who in American
Women. Ms. Kaplan was included in the 1997 and 1998 Worth magazine list of the “Best 300
Financial Advisers.” She has been interviewed and quoted in the Washington Post, Physicians
News, Research Magazine, Ticker Magazine and Bottom Line/Personal.
Jocelyn is a member of the Financial Planning Association and a has been a Registered
Representative of Cadaret, Grant since 1988. A former radio talk show host, Ms. Kaplan is an
articulate, knowledgeable and personable speaker who regularly speaks at meetings and
seminars. Originally from New York, Jocelyn now lives in Arlington, Virginia.
Amy C. Hoffman, CFP
Amy Hoffman was born in Akron, Ohio, on May 19, 1970. She has been a financial planning analyst with The Jentner Financial Group of Akron, Ohio, a financial planning assistant with Sullivan, Bruyette, Speros and Blayney of McLean, Virginia, and a financial analyst with Ernst & Young LLP of Washington, D.C. Amy is a Registered Investment Adviser Representative and holds life and health insurance licenses. She earned her Bachelor of Finance degree from The University of Akron, Akron, Ohio and received her Certified Financial Planner designation in 2000.
