At the beginning of every new client conversation, we provide a copy of NAPFA’s Consumer Resources to help you select a financial planner. Following is a completed copy of their advisor questionnaire.
How to Choose a Financial Planner — Tough Questions to Ask
BACKGROUND & EXPERIENCE
What is your educational background? (Kenneth Klabunde)
College degree — Bachelor of Science, Business Systems and Finance
Graduate degree — Master of Science, Personal Financial Planning
What are your financial planning credentials/designations and affiliations? (Kenneth Klabunde)
NAPFA-Registered Financial Advisor — (60 hours continuing education every 2 years)
Certified Financial Planner (CFP) — (30 hours continuing education every 2 years)
International Academy of Collaborative Professionals (IACP)
Central Indiana Association of Collaborative Professionals (CIACP)
Financial Planning Association (FPA)
XY Planning Network (XYPN)
How long have you been offering financial planning services? (Kenneth Klabunde)
More than 20 years (since 1997)
Do you have clients who might be willing to speak with me about your services?
We do not provide client references except in rare situations. It is of limited value to you since any client reference we provide would be selected in part for their favorable opinion. We also highly value the privacy and security of clients and therefore don’t share client information with other clients, including names. This protects you as a client.
Clients must provide us with a written authorization to release their contact information to you. If you believe this is necessary in your situation, please contact Kenneth to discuss your needs.
Will you provide me with references from other professionals?
Have you ever been cited by a professional or regulatory governing body for disciplinary reasons?
Describe your financial planning work experience or attach your resume.
Kenneth Klabunde’s resume is available at https://www.linkedin.com/in/kennethklabunde
How many clients do you work with?
Are you currently engaged in any other business, either as a sole proprietor, partner, officer, employee, trustee, agent or otherwise? (Exclude non-investment related activities which are exclusively charitable, civic, religious or fraternal and are recognized as tax-exempt.)
Yes — Kenneth Klabunde is the owner of Klabunde Farms, LLC
Will you or an associate of yours work with me?
Kenneth Klabunde will be your primary advisor and primary contact. Financial analysis and support services will be performed by additional members of our team to facilitate your work with Kenneth.
If an associate will be my primary contact, complete questions in the Background & Experience section for each associate as well.
You can become acquainted with our entire team at https://precedentam.com/about/
Will you sign the Fiduciary Oath below?
Yes, and our expanded fiduciary pledge can be reviewed at https://precedentam.com/fiduciary/
The advisor shall exercise his/her best efforts to act in good faith and in the best interests of the client. The advisor shall provide written disclosure to the client prior to the engagement of the advisor, and thereafter throughout the term of the engagement, of any conflicts of interest which will or reasonably may compromise the impartiality or independence of the advisor.
The advisor, or any party in which the advisor has a financial interest, does not receive any compensation or other remuneration that is contingent on any client’s purchase or sale of a financial product. The advisor does not receive a fee or other compensation from another party based on the referral of a client or the client’s business.
Do you have a business continuity plan?
Financial planning costs include what a client pays in fees and commissions. Comparison between advisors requires full information about potential total costs. It is important to have this information before entering into any agreement.
How is your firm compensated and how is your compensation calculated?
Fee-Only (as calculated below):
Initial fee from $1,500 and a minimum quarterly fee of $600
Percentage fee ranging from 0.15% to 1.0% of assets under management
Additional details available at https://precedentam.com/services/
Do you have an agreement describing your compensation and services that will be provided in advance of the engagement?
Do you have a minimum fee?
Yes — $1,500 initial planning fee, and $600 minimum quarterly fee
If you earn commissions, approximately what percentage of your firm’s commission income comes from the following products?
Does any member of your firm act as a general partner, participate in, or receive compensation from investments you may recommend to me?
Do you receive referral fees from attorneys, accountants, insurance professionals, mortgage brokers, or others?
Do you receive on-going income from any of the mutual funds that you recommend in the form of “12(b)1” fees, “trailing” commissions, or other continuing payouts?
Are there financial incentives for you to recommend certain financial products?
Financial planners provide a range of services. It is important to match client needs with services provided.
We offer advice on:
Cash management & budgeting
Investment review, planning & management
Insurance needs in the areas of life, disability, long-term care, health and property/casualty
Do you provide a comprehensive written analysis of my financial situation and recommendations?
Does your financial planning service include recommendations for specific investments or investment products?
Yes — we provide specific recommendations for your active employer retirement plans, 529 plans, and all accounts under our management.
Do you offer assistance with implementation of the plan?
Do you offer continuous, on-going advice regarding my financial affairs, including advice on non-investment related financial issues?
Do you take custody of, or have access to my assets?
If you were to provide me on-going investment advisory services, do you require “discretionary” trading authority over my investment accounts?
Federal and state laws require that, under most circumstances, individuals or firms holding themselves out to the public as providing investment advisory services are required to be registered with either the U.S. Securities & Exchange Commission (SEC) or the regulatory agency of the state in which the individual/firm conducts business.
I (or my firm) is registered as an Investment Advisor with the states of Indiana and Ohio
Please provide your Form ADV Part II or brochure being used in compliance with the Investment Advisors Act of 1940. If not registered with either the SEC or any state, please indicate the allowable reason for non-registration.
Kenneth R. Klabunde
Precedent Asset Management
A yes or no answer requiring explanation is not necessarily a cause for concern. We encourage you to give the advisor an opportunity to explain any response.
This form was created by the National Association of Personal Financial Advisors (NAPFA) to assist consumers in selecting a personal financial planner. It can be used as a checklist during an interview or sent to prospective planners as a part of a preliminary screening. NAPFA recommends that individuals from at least two different firms be interviewed.