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A. FINANCIAL PLANNING PROCESS
The financial planning process is straightforward and consists of just 5 steps:
1. Goals (e.g., a comfortable retirement plus send two kids through college)
2. Objectives (translates each goal into a specific dollar amount)
3. Strategy (what asset categories should be used)
4. Implementation (what investment vehicles should be used)
5. Performance (what annual adjustments are needed to stay on track)
B. OUR PROCESS
Client Research
It begins when you receive and review our current brochure ADV, Part 2. This brochure is available from the "Client Forms"
section of the webpage and provides information about the qualifications and business practices of Bowen Financial
Planning LLC. We encourage you to research other financial planning firms to help provide you with information necessary
to be confident in your hiring decision. Bowen Financial Planning is available to answer any of your questions.
Set Up Initial Meeting
After you contact us to assist you, we will set up an initial complimentary meeting. The meeting typically lasts up to
an hour or so and usually occurs at our office although we can meet at another location if that is more convenient. We
request that you complete and give us the Confidential Investment Profile and Risk Profile questionnaires at least 3 to 5
days before the initial meeting. These questionnaires are available for download on the "Client Forms" section of this website
or we can mail or e-mail copies to you. The questionnaires help us better understand your individual goals, values, attitudes
and risk profile in addition to basic information about you. Your candid input helps to make a productive initial meeting as well
as helping us to formulate strategies to allow you to achieve your financial goals or to solve problems.
First Meeting
The goal of this appointment is to get to know you and what is important to you in order to ensure a good “fit” so that
we can work together successfully. The focus will be your financial goals and concerns and whether you think that we can
assist and benefit you. We will go over the questionnaires and discuss any other questions or related topics. While you are
under no obligation, we hope that you are convinced that our firm can help you realize your financial goals.
Data Gathering and Analysis
When you decide that you would like to hire us to help you, the next step will be for you to provide us with more
information or documents such as brokerage statements or insurance policies if necessary. Bowen Financial Planning will then
analyze your needs and determine the effort required to complete your financial plan. We depend upon your commitment to
provide accurate and complete financial information in order to provide the most accurate and detailed financial plan.
Proposal
After reviewing your submitted data and needs, we will provide you with a written proposal detailing the scope and cost of our
services. Our firm only charges fees and receives no commissions of any kind. Fees are either charged on an hourly basis or
as a percentage of assets managed.
If you decide for us to manage your assets, you will be charged a low fee at the end of each quarter. You will need to establish
a brokerage account and either transfer assets into it, deposit cash, or begin to contribute to it. We encourage establishing
accounts with Vanguard although we will work with most other brokerage accounts. We will manage your account according to
your instructions. An added benefit to letting us manage your assets is that you will receive a free initial standard financial plan,
a savings of $300 to $500. There may be additional charges for preparation of more complex financial plans.
If you interested in advice to manage your own assets, desire a financial plan without us managing assets, or simply want
counseling, we offer hourly assistance. In this way, you have the flexibility to only pay for the services that you want.
Analysis
Once the client’s risk profile is determined, modern portfolio theory is used to determine an investment strategy with an
optimal allocation of assets (e.g., 60% stocks and 40% bonds) that will deliver adequate future returns to meet objectives and
offer an appropriate amount of risk or volatility for the client’s risk profile. We believe that the appropriate allocation of assets
across diverse investment categories is the primary determinant of portfolio returns and risk and is critical to the long-term
success of a client meeting his or her financial objectives and goals.
Bowen Financial Planning LLC then recommends and implements an optimal portfolio with specific recommendations of
investments. The goal of the portfolio is to produce large enough gains to meet the client’s goals and objectives with the lowest
amount of risk or volatility. Examples and probabilities of historical returns and risk will be calculated and presented to the client.
The portfolio’s performance is continually monitored and reported to clients at least every quarter. The portfolio will be re-balanced
each year in order to maintain the appropriate percentage of types of assets (e.g., 60% stocks, 40% bonds). The portfolio may
also be adjusted periodically to account for the client’s changing goals or to take an advantage of undervalued investments. We
favor investing in exchange traded funds (ETFs), no-load mutual funds, and closed end funds with low average expense ratios.
For example, Vanguard funds have an average of 0.19% annual expense ratio compared to the industry average of 1.08%.
By investing in funds with low average expenses, we can pass the savings on to our clients and promote higher compounded
annual returns.
Open communication is used to ensure all questions are answered and information is complete and accurate. Upon completion,
you will be given our written recommendations to review.
Financial Plan Review
After you have had time to review your written plan and ask us questions, we will explain or clarify unclear items and make
adjustments to the financial plan if necessary based on your input. We will move forward and implement the plan upon your approval.
Ongoing Management and Performance Review
We continually manage and monitor your account. We will provide updates on your portfolio's performance each quarter and update
your financial plan annually if needed, free of charge. We welcome you to contact us at any time and encourage you to inform us of
any significant changes in your financial circumstances or goals.
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