2) What is a Registered Investment Advisor?

A Registered Investment Advisor is a fiduciary who has a duty of undivided loyalty to its clients and must deal fairly and honestly with them. A Registered Investment Advisor is a representative of the client.

3) How much does Cambridge Tax and Financial Consultants charge?

We are Fee Only advisors, which means we are only compensated by our clients. Included in our prospective client packet is a detailed outline of our fee structure. For a Complete Financial Plan, our fees begin at $4500. For an annual Financial Planning and Investment Advisory Retainer, which includes a complete Financial Plan, our fees begin at $7000 the first year and for subsequent years 1% for the first $1,000,000, .80% for the next $1,000,000 and .6% for additional assets. There are some instances where we work with clients by the project or on an hourly basis. Your retainer agreement will contain the specific information of how your retainer fee is calculated.

4) What does Cambridge Tax and Financial Consultants sell?

Sound financial planning advice regarding taxes, investments, insurance, pensions, retirement, estate planning and general matters.

5) Who do we serve?

Individuals.

Corporations or business entities.

6) Who can benefit from our services?

Anyone who has financial, tax, investment or estate problems, or who wishes to plan prudently for his or her financial future. Furthermore, persons who desire a higher, more sophisticated level of financial planning services may find our program appealing.

7) How much money do you need to work with us?

There is no minimum asset requirement. We recognize that persons with little or no assets can benefit from good financial advice.

Typically, our retainer clients have investable assets (not including real estate) of $500,000 or more.

8) What is a financial plan?

An in-depth review of your financial situation, taking into account your goals and objectives and focusing on income tax planning, specific investment recommendations, estate planning, risk management, educational planning and retirement planning. The plan analyzes and recommends ways that you can achieve your financial objectives.

9) Are the fees tax deductible?

Yes. Section 212 of the Internal Revenue Code permits an itemized deduction for tax and/or investment advice. It can be found in the miscellaneous section of Schedule A and is subject to a 2% floor of your adjusted gross income. Clients who own their own business, have a farm or rental property, or who buy and sell investments may also be able to deduct a portion of the fee on the corresponding schedule.

10) Do we sell financial planning products, such as mutual funds, insurance and tax shelters?

No. We are fee only planners and therefore do not sell any products. Products must be purchased by clients from other sources. We will suggest investments you can make without paying commissions and guide you in your purchase. We are listed financial advisors with Charles Schwab and Co., Inc., a discount broker. You may choose to set up accounts through Schwab, or any other brokerage firm of your choice.

11) When we develop a financial planning program together, am I obligated to purchase the recommended products?

Often, the products that we recommend to our clients are the same products we purchase for ourselves, but you are never obligated to purchase any recommended product. In fact, you are encouraged to shop for the best available product.

12) Does Cambridge Tax and Financial provide only complete programs?

On occasion, we may do a "project" retainer where we review just one area of a client's finances, such as a tax analysis, or evaluating their 401(k) choices.

13) Does Cambridge Tax and Financial offer a tax service?

Income tax preparation may be included in a clients full annual retainer agreement.

14) Do we provide legal services?

No. However, we can refer you to attorneys as needed.

15) What type of securities do you provide advice for?

Equities, corporate bonds, certificates of deposits, municipal securities, mutual funds, variable annuities, US government securities, real estate, option contracts on securities and limited partnerships.

16) What method of analysis do we use to analyze investments?

We do not use charting. We do use technical analysis and fundamental approaches, such as economic conditions, earnings, industry outlook, politics (as it relates to the investment), historical data, price-earning ratios, dividends, the general level of interest rates, company management and tax benefits. Our main sources of information are financial newspapers and magazines, research materials prepared by others, and annual reports, prospectuses and filings with the Securities and Exchange Commission.

17) Do we guarantee investment performance?

No

18) Will client information be kept confidential?

Yes. It is the law.

19) Once a plan is completed, will our relationship end?

It should not. Financial planning is a process, not an event. We provide annual, semi-annual or quarterly analysis of your net worth to access diversification and review investments. Tax preparation and planning are done on a regular basis. We are also available as needed for financial advice upon your request.

20) Do you offer money management?

Yes. But we reserve the right to select accounts. Assets may be managed by directed portfolios under a limited power of attorney, with the client remaining custody of all funds.