Frequently Asked Questions

Here, you'll find answers to the most common questions we receive about our services, our process, and financial planning/financial advisory as a whole. We welcome you to reach out to us directly if you have any additional questions or need further assistance.

What Is Financial Planning?

Financial planning involves managing your finances to help you reach your current and future goals. It typically includes evaluating your current situation, setting clear objectives, and developing a strategy that covers budgeting, saving, investing, and debt management. This approach ensures you're prepared for major life events, including but not limited to buying a home, starting a family, or retiring comfortably.

Who Will Steffens Financial Take On As Clients?

We are committed to helping clients at every stage of life—whether you're a young professional opening your first IRA, in your prime earning years focused on building wealth, preparing for retirement, or already enjoying your golden years.

Our approach is a two-way conversation. Just as you evaluate us, we take the time to ensure our services are the right fit for your needs. We choose to work with kind, respectful individuals who value a collaborative relationship.

If we find that we’re not the best fit for your situation, we’ll do our best to point you in the right direction.

Examples of the various clients we work with:

Aren't Financial Advisors for the Wealthy?

Financial advisors are for anyone looking to improve their financial situation and achieve specific goals. We can help with many things like budgeting and planning for large goals such as buying a home or retirement, even if these goals may not be immediately relevant to you now.

Where Can I Do A Background Check On A Financial Professional?

When evaluating a financial professional, conducting a background check through BrokerCheck is a crucial step. This tool helps prospective clients make informed decisions by providing easy access to key details about brokers and brokerage firms. It includes:

Registration Status: Confirms whether an individual or firm is legally registered to sell securities (such as stocks, bonds, and mutual funds) or provide investment advice.
Professional History: Offers a snapshot of a broker's employment history, regulatory actions, investment-related licenses, arbitrations, and any filed complaints.
SEC Action Lookup Tool: Provides information on formal actions taken by the SEC, including cases against individuals who may not be brokers.

Taking the time to review this information can help ensure you're working with a reputable and qualified professional.

Complete a Broker Check Here

What Should Financial Professionals Be Doing for You?

A Financial Professional Should Be...

✔ Communicating by guiding clients through their process, with no guesswork.

✔ Offering services, not selling or pitching products, and explaining the pros and cons of each recommended vehicle.

✔ Explaining the fees associated with each product.

✔ Building Trust - clients should have confidence in their financial advisor and trust in their process.

✔ Knowledgeable in various financial planning areas.

✔ Bringing a client's attention to information that could possibly affect their specific situation.

✔ Returning client phone calls in a timely manner.

✔ Making time to answer any questions or concerns a client has and explaining the details.

✔ Proactively assists with or is willing to attend meetings with you and your accountant or attorney when issues such as when estate and wealth transfer planning need to be addressed.

How Do I Know If My Financial Professional Has My Best Interest At Their Focus?

The primary role of any financial professional is to assist clients in addressing their financial needs. However, some may focus more on selling a product, potentially overlooking the true needs of their clients.

It's important to check whether a financial professional is a fiduciary. A fiduciary is legally required to manage a client's money and property in the client's best interest rather than their own.

How Is Confidentiality And Discretion Typically Handled At Steffens Financial?

We handle any client information similar to that of doctor-patient confidentiality and attorney-client privilege.

Client information is never shared outside of our office and team unless it is essential for conducting business. Only entities directly involved in our day-to-day operations and who have been thoroughly vetted and approved by the Commonwealth Compliance Team have access to client information when necessary.

We do not share any of your information outside of our office and team unless absolutely pertinent to the nature of business needing to be conducted. Pertinent entities include companies that we do business with for the purpose of our day-to-day work obligations, and only those thoroughly vetted and approved by Commonwealth Compliance Team.

How Do I Know Which Title Or Designation Is The Best Fit For My Needs?

Common titles and designations for financial professionals include Financial consultant, Broker, Certified Financial Planner (CFP), Wealth Advisor, Financial Advisor, Financial Services Representative, Investment Advisor, and Financial Specialist, among others.

While some of these designations are earned, they may not always be actively applied or practiced. Job titles can also be broad, which means they may not fully reflect a financial professional's skills and services. It's important to review the services and skills of a financial professional rather than relying solely on their titles or designations for whether they are qualified or not.

What is Risk Tolerance?

Calculate Your Risk SCore Here

Risk tolerance measures how much risk an investor is willing to take in light of the potential volatility of an investment. This number is dynamic and varies from person to person.

A financial professional should ask targeted and situational questions to assess a client’s risk tolerance, rather than simply asking them to rate themselves on a scale.

Each investment strategy should align with the client’s true intentions and investment behaviors. It is essential that a discussion occurs to align the fundamentals of specific investments with the client’s financial tendencies and goals before committing any funds to particular investment vehicles.

It Sounds Like My Financial Professional Knows What I'm Asking At A Basic Level, But It Never Seems Like They Are Confident In Their Explanation.

Some financial professionals may use industry buzzwords to capture your attention, but it’s crucial to conduct your research and review their website to understand the services they actively promote. For example, if they are primarily an investment advisor and don’t emphasize estate planning or tax planning, it's likely these services are not part of their offerings.

While many financial professionals may be able to assist you at a basic level due to their experience in the industry, it’s best to choose one who aligns with your specific current and future needs and expectations.

What Are Some Questions I Could Use To Vet A New Financial Professional To Ensure My Needs Are Covered?

When vetting a new financial professional, it's essential to consider both your current needs and your long-term goals. Think about where you are now, and where you want to be in the future. For example, if you don't currently have life insurance but plan to acquire it in the next few years, make sure the financial professional you are considering offers this service. It's important to ensure that the professional can meet both your immediate needs and future plans.

If the financial institution doesn't offer the services you're looking for, it may be more efficient to continue your search rather than beginning a relationship only to switch professionals later as your needs change. Taking the time to properly vet a professional upfront can save you from the hassle later.

I Oversee Retirement Plans And Employee Benefits At My Company. I Want To Increase Participation. Can Steffens Financial Help?

As your Broker of Record, we would host an employee education workshop, which can significantly increase participation in both retirement plans and employee benefits by helping staff better understand their options. Additionally, incorporating a financial wellness program encourages employees to individually discuss their financial stress and explore ways to reduce/alleviate it.

These initiatives empower individuals to take control of their financial futures, fostering a more engaged and financially secure employee base.

How Do I Know If My Financial Advisor Is A Good Fit For Me And My Needs?

The decision to work together is mutual. Both clients and financial professionals share the responsibility of ensuring a clear understanding of the services and capabilities available to meet the needs of the client. Just as clients may hire the wrong financial professional, financial professionals can also work with clients whose needs don't align with their investment and planning philosophies.

It's important to actively reassess this, especially as circumstances change. A financial professional may have been a good fit at the beginning of the partnership, but as situations evolve, clients' needs may outgrow the financial professional's expertise or approach.

I'm Not Sure If My Financial Advisor Is Providing The Right Investment Vehicle For Me. What Should I Do?

There is a difference between offering a service and pitching a product. There are many investment vehicles to choose from, some simple and easy to comprehend, and others that are more complex.

Clients should ask their financial professional to explain the investment vehicle in broad, non-industry-specific terms, ensuring a clear understanding of why a particular product is suitable for them. Expectations should be realistically aligned with investment needs, and it is essential to understand how the investment vehicle fits into the overall financial plan.

Things To Remember:

✔ Clients should maintain regular communication with their financial professional, especially when significant life events arise or are on the horizon.

✖ Financial professionals do not control the market

✔ Trust and transparency are essential for both the client and the financial professional. Just as the client should have a thorough understanding of their portfolio, financial professionals need to be fully informed about the client’s situation in order to manage the portfolio effectively.

✖ Financial professionals should avoid relying solely on industry jargon when communicating with clients.

✔ Two individuals in a relationship, marriage, or partnership may have different financial goals and preferences.

✖ A client’s comfort level should not be determined by the current state of the markets.

✔ Financial professionals should prioritize educating their clients on financial matters to help them make informed decisions.

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