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FINANCIAL PLANNING AGREEMENT


This Financial Planning Agreement (“Agreement”) is made and entered into between HOLLAND ADVISORY SERVICES, INC. (hereinafter referred to as the “Adviser”), a Florida Corporation, having its principal place of business at 700 West Granada Boulevard, Ormond Beach, Florida 32174 and                                              (hereinafter referred to as “Client”) whose address is                                                                              .

 

WHEREAS, Adviser is a Registered Investment Adviser in the business of providing financial and investment advisory services; Client desires to retain Adviser to obtain personalized financial planning in accordance with the terms and conditions of this Agreement.

 

WHEREAS, a financial planning engagement denotes the process of determining whether and how an individual can meet life goals through the proper management of financial resources. The financial planning process includes understanding Client’s personal and financial circumstances; identifying and selecting client goals; analyzing Client’s current course of action and potential alternatives; developing the financial planning recommendation(s); presenting the financial planning recommendation(s); implementing financial planning recommendation(s); and monitoring progress and updating, if applicable.    

 

WHEREAS, all services performed under this Agreement are one-time engagements. This means Adviser will not monitor or update the financial planning recommendations unless recommendations proceed through implementation, at which point monitoring will be further clarified.

 

NOW THEREFORE, Agreement sets forth the terms by which Client hires and agrees to pay Adviser to provide the following services (as indicated by initialing next to the service desired):

 

_____ $1,000 - Financial Analysis - Adviser will evaluate and provide advice on various aspects of Client’s financial situation, including, but not limited to, identifying and assessing, and illustrating:

 

·        Asset allocation, portfolio risk and degree (or lack) of investment diversification

·        Bond maturities, credit risk, and interest rate risk

·        Concentration of individual investment holdings

·        Ratings of investment holdings

·        Overall and individual holdings fees

·        Annuity product rates, riders, and fees

·        Sequence-of-return risk (aka dollar-cost-ravaging)

·        Compatibility of current financial position with stated financial goals and objectives

 

          $1,000 – Investment/Insurance Recommendations - Adviser will advise Client on how to  reallocate Client’s existing investment accounts and/or evaluate Client’s situation to determine if insurance products are appropriate, in order to assist Client in reaching Client’s stated goals and to address any deficiencies identified during a financial analysis of Client’s current situation, if applicable, as follows:

 

·        Analyze Client’s stated financial goals, investment objectives, income needs, risk tolerance, and time frame and recommend overall asset allocation

·        Examine investment choices available in existing Client accounts, if applicable

·        Survey investment choices to recommend allocation

·        Determine proper investment percentages for desired risk level and diversification

·        Evaluate Client’s risk tolerance, income needs, risk tolerance, and time frame to determine whether Client should purchase an annuity. Based on Client’s situation, Adviser will then follow Adviser’s proprietary selection process to arrive at which type of annuity, insurance company, and/or specific product would be appropriate for Client

·        Analyze Client’s situation and provide life, long-term care, and/or disability insurance recommendations, when appropriate

 

          $1,500 - Retirement Income – Based on analysis of Client’s situation, Adviser will:

 

·        Determine how long Client’s current and future assets will likely last in retirement, based on stated annual after-tax income needs, retirement date, and assumptions about interest, growth, inflation and longevity.

·        Determine the financial impact of What-If Scenarios, if applicable (personalized to Client’s situation)

·        Recommend when/where to draw from IRAs, 401(k)s, and qualified retirement accounts

·        Recommend when to take Social Security

 

           $1,000 – Survivorship Income - Adviser will:

 

·        Determine how long Client’s current and future assets will last, in the event of death of a spouse, based on stated annual after-tax income needs, retirement date, and assumptions about interest, growth, inflation and longevity.

·        Explain how to integrate life insurance proceeds into overall financial plan, if appropriate

·        Discuss when/where to draw from IRAs, 401(k)s, and other qualified retirement accounts

 

_____ $1,000 - Long-term Care Strategies - Adviser will:

 

·        Analyze Client’s specific situation and develop strategies to mitigate the financial risks of the need for long-term care.

·        Recommendations will include funding strategies such as investing, long-term care insurance, and the use of housing equity.

·        Special emphasis is placed on strategies that allow Client to remain in his/her home.  

 

_____ $1,500 – Estate Planning Strategies - Adviser will assist Client to review and explore:

 

·        Client’s needs and preferences in the event of disability or cognitive impairment

·        Client’s existing legal documents and how they respond to Client’s needs and situation

·        Strategies Client might use to provide for temporary or ongoing care needs

·        Strategies for reliable lifetime financial support for surviving spouse

·        Client’s overall estate goals (i.e., who he/she wants to get what, how and when)

·        Different techniques Client might use in his/her desired estate plan

·        Techniques to help reduce or eliminate federal gift and estate taxes

·        Planning for assets eligible for capital gains tax treatment and “step-up” in basis at death

·        Intergenerational taxes associated with IRAs, 401(k)s, and other retirement plans

·        Intergenerational tax issues for the income taxes associated with deferred annuities

·        The adequacy of existing life insurance policies and titling/beneficiary designations

·        Trusts to hold or be the beneficiary of Client’s life insurance policies

·        Strategies to provide for the ongoing support of adults and children with disabilities

·        The need to restrict access to inherited funds to maintain government benefits

·        How to control inherited funds for beneficiaries unable to receive a lump sum

·        Management of funds for beneficiaries until a pre-determined event, age or time;

·        Strategies to provide one-time or ongoing gifts to charities

 

_____ $750 – Estate Planning Implementation – Adviser will:

 

·        Prepare a presentation of Client’s desired strategies for discussion with his/her attorney

·        Check attorney’s legal documents for consistency with Client’s stated financial goals

·        Guide Client on changes to the ownership of and beneficiary designation on assets, insurance policies, IRAs, 401(k)s, and other accounts.

 

_____ Other - _____________________________________________________________

 

ADVISER FEES: Financial planning fees may be charged on an hourly or flat fee basis. Adviser’s total fee for this engagement is based on the expected time required for Adviser to provide the selected services and may be reduced if Adviser is to perform multiple services under one engagement. Client agrees to pay Adviser $                    upon delivery and/or presentation of Adviser’s final work product to Client. Checks should be made payable to “Holland Advisory Services, Inc.

 

DISCIPLINARY HISTORY: We have no financial commitment that impairs our ability to meet contractual and fiduciary commitments to you and neither our company nor our CFP® professionals have been the subject of any public discipline or bankruptcy proceedings. Information about brokerage firms and individual brokers is publicly available online through FINRA’s Broker Check Program at https://brokercheck.finra.org/ or by calling toll-free at (800) 289-9999. Information about certain investment adviser firms is available through the SEC’s Investment Adviser Public Disclosure Program at https://www.adviserinfo.sec.gov/IAPD/default.aspx. Information about brokerage firms, individual brokers, investment adviser firms and individual investment advisers is also available through the Florida Office of Financial Regulation.  To search for additional material and public history on any of Adviser’s CERTIFIED FINANCIAL PLANNER™ professionals, please visit www.letsmakeaplan.org/choose-a-cfp-professional/verify-a-cfp-professional or www.pacer.gov.  Visit investor.gov/CRS for a free and simple search tool to research us and our financial professionals.

 

NOT LEGAL ADVICE: Nothing in this Agreement shall create an attorney-client relationship for the provision of legal services:

 

·        Adviser is not a law firm and does not offer legal advice or prepare legal documents.

·        Any work or service performed under this Agreement, including, but not limited to, any written communication and presentations should not be considered legal advice or used as a substitute for obtaining legal advice from a licensed attorney.

·        Client is encouraged to consult with an attorney of his/her choosing for legal advice and/or for the creation or amendment of the appropriate legal documents to accomplish Client’s desired estate planning goals.

·        Upon Client’s request, Adviser may refer Client to attorneys or other third-party professionals, who are known by Adviser. All such referrals are made at “arms-length;” no compensation is shared between Adviser and any such third parties. Client is not obligated to use any particular professional.

 

DATA-GATHERING: Client agrees to candidly discuss his/her financial circumstances, goals and projected future needs with Adviser. Client recognizes that Adviser’s work on his/her behalf depends upon the information which Adviser has concerning Client’s situation and upon his/her participation in formulating an appropriate financial strategy. Client agrees to furnish all requested information regarding his/her financial condition and financial goals, which Adviser requires to perform the above services. Depending on the services selected, Adviser may request that Client provide Adviser with completed questionnaires, a driver license, income/estate/gift tax returns, investment statements, insurance policies, projected social security income, mortgage payments, wills, trust documents, or other documents, to begin the data-gathering process.

 

CONFIDENTIALITY: Any original documents supplied by Client will be returned when the financial engagement is complete. Copies of documents, papers and other information may be retained by us in Client’s file for compliance purposes. All information will be held confidentially and will not be disclosed to third parties, except in the providing of services under this Agreement, as required by law, or as agreed upon in writing

 

FIDUCIARY RESTRAINT AND CLIENT BEST INTEREST: In keeping with its fiduciary duty, Adviser is required to avoid conflicts of interest and/or disclose and properly manage conflicts, after obtaining the client’s informed consent, when providing financial advice. When acting under a conflict of interest, Adviser continues to have a duty to act in a client’s best interest and place the client’s interests above those of Adviser. Accordingly, Adviser shall exercise fiduciary restraint in the face of incentives and conflicts in order to act in Client’s best interest under this Agreement.

 

CONFLICTS OF INTEREST DISCLOSURE & WAIVER: A conflict of interest exists when a reasonable person would conclude that a financial interest affects a firm’s judgment when making recommendations. Inherent conflicts of interest based on our corporate structure and business model, which could affect the client relationship with Adviser, include:

 

·        Affiliated Entities: The following entities are affiliated and share common ownership with Adviser: Holland Insurance Services, Inc.; Holland, Tacinelli, CPAs, P.A.; Holland Tax & Accounting, Inc.; David D. Holland, CPA; Holland Productions, Inc., d/b/a/ PlanStrongerTV; and Holland Business Brokers, Inc. Recommendations for courses of action, services, or products through one or more of these entities creates an incentive to make recommendations solely for the increase in revenue.

·        Receipt of Incentives: Adviser may receive services from third parties, including but not limited to, marketing, training, technology, and/or education.

    ·     Business Relationships: Adviser or its affiliated entities may have business relationships with third parties to which Adviser may refer clients. This creates an incentive for Adviser to make referrals to these parties in lieu of others solely for the continued business, even though no referral compensation is shared between parties. 

·        Spousal Conflict: A conflict of interest arises when spouses, who are both existing clients of Adviser, wish to continue their advisory relationship, despite a future or ongoing dissolution of marriage.  If this situation arises, Adviser will determine whether financial services can be provided without compromising fiduciary duty and professional abilities to act in each respective client’s best interests.  If Adviser determines that a relationship cannot continue with both clients, Adviser will terminate its relationship with one or both clients. 

 

CONSENT TO CONFLICTS OF INTEREST: Client(s) understand(s) Adviser’s conflicts of interest and the business practices that give rise to such conflicts and give(s) informed consent, by signing this Agreement, to the conflicts described herein.

 

ACKNOWLEDGMENT OF REGULATORY DISCLOSURES: Client acknowledges receipt of Adviser’s ADV Part III Form CRS, as well as Adviser’s Privacy Policy prior to or at the time of the signing of this Agreement.

 

LIMITATION OF LIABILITY: Since the financial planning services referred to herein are advisory in nature, Client expressly understands and agrees that:

 

·        Adviser shall not be held liable for Client’s failure to inform Adviser, in a timely manner, of any material changes in Client’s financial circumstances, which might affect Adviser’s recommendations.

·        In the absence of fraud, willful misconduct, or willful negligence on Adviser’s part, Adviser shall not be responsible, in any way whatsoever, for any loss incurred by reason of Client’s acts or omissions.

·        All analyses and recommendations will be based on the information submitted and verbally communicated to Adviser. Adviser shall not be required to verify any information obtained from Client or from Client’s other advisers (e.g., attorney, accountant, insurance agent). Adviser is expressly authorized to rely on such information.

·        Adviser shall not be held liable in any way relating to the projection of performance of any investment account, including any outcome of a decision made in connection with the full or partial implementation of any of the recommendations made by Adviser, provided that, Adviser has complied with all federal and state laws and/or regulations controlling the provision of investment advisory services. Federal and state securities laws impose liabilities under certain circumstances on persons who act in good faith and, therefore, nothing in this Agreement shall, in any way, constitute a waiver or limitation of any rights that Client or Adviser may have under federal and state securities laws. 

·        Advice given under this Agreement will be based on economic and tax factors, as well as Client’s circumstances at the time the services were rendered. Since much of financial planning is based on events and economic outcomes in the future, Adviser must make assumptions about future investment returns, inflation, tax policy, tax rates, etc. Adviser offers no assurances or guarantees that any such projections will be achieved.

·        Adviser provides planning services for numerous clients at different times, which may vary in scope and complexity. Accordingly, Adviser may give advice and act with respect to any of its other clients that may differ from advice given to Client.

·        In addition, this Agreement shall be applicable only to financial advice contained in Client’s written financial plan.

 

ARBITRATION: Any controversy arising out of or relating to this Agreement or the breach thereof, will be settled by arbitration in accordance with the American Arbitration Association’s code of arbitration rules and procedures in effect at the time.  Client understands that this agreement to arbitrate does not constitute a waiver of the right to seek a judicial forum, where such a waiver would be void under state or federal securities laws.  The award of the arbitration, or a majority of it, will be final, and judgment upon the award rendered may be entered in any state or federal court having jurisdiction.  At least one member of the panel must have five years’ experience in the financial services industry.  Arbitration of any other hearing or legal proceeding between Adviser and Client will take place in a mutually agreed upon location.  It is further understood and agreed to that, pursuant to the above arbitration clause:  1. arbitration is final and binding on all parties; 2. parties are waiving their right to seek remedies in court, including the right to jury trial, except where such waiver would be void under federal securities law; 3. pre-arbitration discovery is generally more limited than and different from a court proceeding; 4. the arbitrator’s award is not required to include factual or legal reasoning and any party’s right to appeal or seek modification of rulings by the arbitrators is strictly limited; 5. the panel of arbitrators will include a minority of arbitrators who were or are affiliated with the securities industry. In addition, no person shall bring a punitive or certified class action to arbitration, or seek to enforce any pre-dispute arbitration agreement, against any person who has initiated in court a punitive class action, or is a member of a punitive class who has not opted out of the class with respect to any claim encompassed by the punitive class action until: (i) the class certification is denied; or (ii) the class is decertified; or (iii) the customer is excluded from the class by the court.  Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any rights under this Agreement, except to the extent stated herein.

 

SEVERABILITY: If any term, provision, duty, undertaking or obligation of this Agreement shall be held or made non-enforceable by a statute, rule, regulation, decision of a tribunal or otherwise, such provision shall be automatically reformed and construed to be valid, operative and enforceable to the maximum extent permitted by law or equity while most nearly preserving its original intent. The invalidity of any part of this Agreement shall not render invalid the remainder of this Agreement and, to that extent, the provision of this Agreement shall be deemed to be severable.

 

TERM: This Agreement and the services provided hereunder shall be ongoing until terminated by either party as set forth in the “Termination” clause or upon completion, delivery, and payment of the work product by Adviser to Client.

 

TERMINATION: Client has the right to terminate this Agreement, for any reason, at any stage, upon written notice, subject to the following: 1. Within five (5) days after entering into this Agreement, Client may terminate this Agreement without payment of any fee or penalty. Any deposit collected will be fully and promptly returned. 2. After five (5) days, either party may terminate this Agreement by written notification to the other party. Client will be entitled to a pro-rated refund of any prepaid deposit which Adviser has not earned, and Adviser will be entitled to any fees that were earned and not yet received from Client. Adviser shall provide an accounting of its time to support the refund or additional charges due.

 

NOTICES: All notices required or permitted to be given under this Agreement will be sent by certified mail to Adviser at: 700 West Granada Boulevard, Ormond Beach, Florida 32174; or, if to Client, at Client’s last known address contained in Adviser’s files.

 

ASSIGNMENT: Agreement is not assignable without consent of all parties.

 

CAPTIONS: Paragraph headings are for convenience only and are not of substantive effect.

 

ENTIRE AGREEMENT: This Agreement contains the entire understanding of the parties with respect to the subject matter contained herein.  Any oral understandings are incorporated and merged into Agreement.  No representations were made or relied upon by either party except as set forth herein.  This Agreement may not be changed unless Client and Adviser agree to the change in writing.  The validity, interpretation, and performance of this Agreement will be governed by and construed under the laws of the State of Florida and the Securities and Exchange Commission in a manner consistent with the Investment Advisers Act of 1940 and the rules and regulations promulgated thereunder.   

 


 

EXECUTION:  I/We have read the above Agreement and the Parties hereto have duly executed this Agreement this ____day of_____________20____.

 

 

 


By:                                                                              Client Signature (Owner/Trustee)                                                                              Client Name (Print or Type)


By:                                                                              Client Signature (Owner/Trustee)                                                                              Client Name (Print or Type)


Holland Advisory Services, Inc. Registered Investment Adviser


By:                                                                              Investment Adviser Representative Signature                                                                              Investment Adviser Representative Name


By:                                                                              President / Compliance Signature                                                                              President / Compliance Name and Title



Rev. 20200716

 


 



Holland Advisory Services, Inc.

The Holland Financial Center

700 West Granada Boulevard, Ormond Beach, FL 32174

386-671-7526