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CFP (R) PRACTITIONER DISCLOSURE FORM
THIS FORM PROVIDES FOR CERTAIN DISCLOSURES TO CLIENTS (OR POTENTIAL CLIENTS) AS REQUIRED BY THE CFP BOARD'S CODE OF ETHICS AND PROFESSIONAL RESPONSIBILITY. IT IS INTENDED FOR USE BY THOSE CERTIFIED FINANCIAL PLANNERTM CERTIFICANTS WHO PROVIDE PERSONAL FINANCIAL PLANNING SERVICES TO CLIENTS FOR COMPENSATION. CFP (R) CERTIFICANTS MAY USE THIS FORM, SEC FORM ADV PART II, OR A FORM OF THEIR OWN DESIGN OR CHOOSING AS LONG AS THE REQUIRED CODE DISCLOSURES ARE INCLUDED IN WHATEVER FORM IS USED BY THE CFP (R) CERTIFICANT. COMPLIANCE WITH THE CLIENT DISCLOSURE REQUIREMENTS OF THE CODE OF ETHICS AND PROFESSIONAL RESPONSIBILITY IS ACCOMPLISHED ONLY WHEN ALL MATERIAL INFORMATION RELEVANT TO THE PROFESSIONAL RELATIONSHIP (WHICH INCLUDES EVERYTHING REQUIRED, PERTINENT AND APPROPRIATE TO THE GIVEN CLIENT RELATIONSHIP) HAS BEEN DISCLOSED TO THE CLIENT OR PROSPECTIVE CLIENT. SUCH DISCLOSURE SHOULD INCLUDE, IF MATERIAL, 1) INFORMATION ABOUT THE FINANCIAL CONDITION OF THE CFP (R) LICENSEE AND/OR HIS FIRM WHICH IS REASONABLY LIKELY TO IMPAIR THE ABILITY OF THE CFP (R) LICENSEE TO MEET CONTRACTUAL COMMITMENTS TO THE CLIENT AND 2) ANY LEGAL OR DISCIPLINARY EVENT RELATIVE TO THE CFP (R) LICENSEE THAT IS MATERIAL TO A CLIENT’S OR POTENTIAL CLIENT’S EVALUATION OF THE CFP (R) PROFESSIONAL'S INTEGRITY OR ABILITY TO MEET CONTRACTUAL COMMITMENTS TO THE CLIENT. MERE COMPLETION OF A SUGGESTED DISCLOSURE FORM DOES NOT, IN AND OF ITSELF, CONSTITUTE FULL COMPLIANCE WITH THE CODE OF ETHICS DISCLOSURE REQUIREMENTS.
THIS DISCLOSURE FORM GIVES INFORMATION ABOUT THE CERTIFIED FINANCIAL PLANNERTM CERTIFICANT AND HIS/HER BUSINESS. THIS INFORMATION HAS NOT BEEN REVIEWED, APPROVED OR VERIFIED BY THE CFP BOARD OR BY ANY GOVERNMENTAL OR SELF-REGULATORY AUTHORITY. THE CFP BOARD DOES NOT WARRANT THE SPECIFIC QUALIFICATIONS OF THE INDIVIDUAL LICENSED TO USE ITS MARKS, NOR DOES IT WARRANT THE CORRECTNESS OF ADVICE OR OPINIONS PROVIDED.
PART I
MATERIAL INFORMATION RELATIVE TO THE PROFESSIONAL
RELATIONSHIP
The basic philosophy of the firm in working with clients and associated theory and/or principles of financial planning which will be utilized:
We subscribe to the six step method of financial planning described by the Financial Planning Association (FPA). These steps are: (1) Collection and assessment of all relevant personal and financial data, (2) Identification of both financial and personal goals and objectives, (3) Identification of financial problems, (4) The production of a written financial plan, (5) Implementation of the agreed upon recommendations, and (6) Periodic review.
We approach our investment advice from an asset allocation strategy basis. Our risk assessment process attempts to match a client's risk tolerance and goals to a specific portfolio allocation model strategy. We offer two programs, the passive model, which utilizes annual reviews, and the dynamic model, which utilizes quarterly reviews. Both programs use no-load mutual funds.
Financial Architects offers asset management services through agreements with Envestnet Asset Management and Lockwood Financial Advisors, Inc., unaffiliated Investment Advisory firms. Disclosure statements are provided to clients via each firm’s ADV Part II, Schedule H.
PART 2
DESCRIPTION OF THE FINANCIAL PLANNING SERVICES TO BE PROVIDED BY THE CFP (R) CERTIFICANT AND METHODS OF COMPENSATION
Depending upon the scope and complexity of the client’s needs, fees are negotiated on a case by case basis. The typical fee for the plan falls within a range of from $2000.00 to $4000.00.
Fees will be paid in two equal installments -- one-half upon contracting and the remainder upon delivery of the completed plan. The contract will be voided and the first installment will be refunded upon request if the client notifies applicant in writing within ten (10) days of the contract date. The fee will cover services for twelve (12) months from the contract date. Renewals are optional for the client.
PART 3
CERTIFIED FINANCIAL PLANNERTM CERTIFICANT'S RESUME
Robert J. Cole, Jr. DOB: 03/14/49
Education: 1967-1971 - University of Kentucky
1982 - Associate Degree, Management, American College
1978 - Chartered Life Underwriter, American College
1982 - Chartered Financial Consultant, American College
1992 - CERTIFIED FINANCIALPLANNERTM
2002 - Chartered Advisor for Senior Living
Business
Background:
1984 - Present
President, CEO, Financial Architects, Inc.
Agent, Mass Mutual Financial Group; Life and Health Insurance Licenses
1984 - 2002
Registered Representative, MML Investors Services, Inc.; Series 6, 22, 62, 63, Variable Annunities License
1972 - 1984
Agent, Prudential Insurance Company of America
PART 4
RELATIONSHIPS WHICH REASONABLY MAY COMPROMISE THE CFP (R)CERTIFICANT'S OBJECTIVITY OR INDEPENDENCE
Financial Architects, Inc.'s, 'primary business' is that of fee-based financial planning and asset management services. However, certificant may hold insurance licenses. It is possible, in some cases, that some products would be offered to clients of Financial Architects, Inc., but only under the following conditions:
- The client and certificant agree to do so.
- All recommendations contained in a client's financial plan will be generic and no specific products will be referenced by name.
- The relationship between Financial Architects, Inc., and its product affiliates will be clearly and completely disclosed to the client. This disclosure will take the form of a letter advising the client of the potential conflict of interests.
Agency relationships: Material agency or employment relationships with third parties and related fees or commissions resulting from such agency or employment relationships:
The corporation's only 'product' is the written financial plan. However, if implementation of that plan (as described in PART 1) should utilize products available through certificant's affiliates, the certificant may receive a commission or override in connection with such transactions. Any products that may be utilized will bear commission rates that are accepted as reasonable. They will be selected based on their history and performance within their given industry.
PART 5
SUBSEQUENT DISCLOSURES
Financial Architects, Inc., is a Registered Investment Advisor (RIA) with the Kentucky Department of Financial Institutions and, as such, maintains Form ADV, which contains further information. We will offer this form annually to our clients and will provide it to anyone who requests it.
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