Commonly Asked Questions

What is a Certified Financial Planner™ practitioner?

 

The Certified Financial Planner (CFP®) mark is granted by the CFP Board of Standards to those who have satisfied the CFP Board’s four certification requirements, including:

1)       Education—CFP® practitioners must first complete an academic program covering 106 financial planning topics including investments, estate planning, individual income tax, retirement planning, risk management, insurance and finance.

2)       Examination—Practitioners must pass a two+day, 10-hour comprehensive exam to assess his or her ability to apply financial planning principles.

3)       Experience—Practitioners must have at least three years of financial planning related experience prior to receiving the CFP® mark.  

4)       Ethics—Practitioners must abide by the CFP Board’s Code of Ethics and Professional Responsibility and Practice Standards. 

 

What is a Chartered Life Underwriter and Chartered Financial Consultant?

 

The American College offers both designations based upon a curriculum of financial courses. The CLU designation is recognized as a professional credential for persons involved in the protection, accumulation, preservation, and distribution of human life—the life insurance business.  The ChFC designation and program is focused more on the comprehensive financial planning process as an organized way to collect and analyze information on a client’s total financial situation; identifying and establishing specific financial goals; and to formulate, implement, and monitor a comprehensive plan to achieve those goals.

 

How does a person earn a Chartered Life Underwriter Designation?

 

The designation requires eight courses—five which are required and three electives.  Students also must meet specified experience requirements, maintain ethical standards, and agree to comply with both The American College’s Code of Ethics and Procedures and applicable continuing education requirements.

 

Required Courses 

HS 318 Insurance and Financial Planning

HS 323 Individual Life Insurance

HS 324 Life Insurance Law

HS 330 Fundamentals of Estate Planning

HS 331 Planning for Business Owners and Professionals

 

Elective Courses (3 completed)

HS 322 Individual Health Insurance

HS 321 Income Taxation

HS 325 Group Benefits

HS 326 Planning for Retirement Needs

HS 334 Estate Planning Applications

 

How does a person earn a Chartered Financial Consultant Designation?


The designation requires eight courses—five which are required and three electives.  Students also must meet specified experience requirements, maintain ethical standards, and agree to comply with both The American College’s Code of Ethics and Procedures and applicable continuing education requirements.

 

Required Courses

HS 318 Insurance and Financial Planning

HS 321 Income Taxation

HS 326 Planning for Retirement Needs

HS 328 Investments

HS 330 Fundamental of Estate Planning

 

Elective Courses (3 Completed)

HS 322 The Financial System in the Economy

HS 332 Financial Planning Applications

HS 334 Estate Planning Applications

HS 336 Financial Decision Making at Retirement 

 

How do clients pay for advice?

 

Initial consultations to determine the scope of the engagement are complimentary.  As Investment Advisor Representatives, we can provide analysis and advice to clients on a fee basis, depending upon the needs of the client.  If ongoing investment management is required, fees are commonly paid through a “fee-based” investment management account offered through Prospera Insurance Advisors.  When insurance products are necessary in a plan, commissions are built into the product and paid by the insurance company offering the product offered through Prospera Insurance Services. Upon request, we are happy to provide our Form ADV.  Investment Advisory Services, including fee-based asset management held through NFS, LLC are offered through Securities America, Inc.  All other financial planning services are offered through Prospera Wealth Management, LLC.

 

What is a fee-based account?

 

Fee-based accounts are established for clients who prefer to pay costs of investment management in an ongoing manner.  Fees are calculated as a percentage of your assets and are paid quarterly in arrears, deducted from the account(s) managed.   Prior to establishing a fee based account, a comprehensive analysis of your financial situation is completed and no commissions will be charged or earned for transactions in these accounts.  

 

What services are provided for a fee-based account?

Prospera Investment Advisors, through its investment advisor representatives, is concerned about helping you with your overall financial situation.  In an effort to help you reach your financial goals, we will provide the following services for our advisory clients:

 

  • Asset allocation strategies
  • Portfolio rebalancing and reporting
  • Quarterly or annual reviews
  • Ongoing financial consultations 

A full description of these services is in the Form ADV Part II and Schedule F for Prospera Investment Advisors, which will be provided to you prior to establishing an account.

 

Does Prospera Wealth Management, LLC, take custody of my money?

 

No, we do not take possession of your assets.  An account will be opened in your name either directly held at a mutual fund family or insurance company; or a brokerage account will be established with National Financial Services, LLC.  Securities offered through Securities America, Inc., Member FINRA SIPC.  Investment Advisory Services, including fee-based asset management accounts held through a custodian are offered through Prospera Insurance Advisors.  All other financial planning services are offered through Prospera Wealth Management, LLC.  Prospera Insurance Advisors custodians your assets at one of the following: Pershing, LLC; FISERV; Fidelity, Genworth Financial Services; or NFS, LLC. 

 

Who is National Financial Services, LLC?

 

Securities in accounts carried by National Financial Services LLC ("NFS"), a Fidelity Investments company, are protected in accordance with the Securities Investor Protection Corporation ("SIPC") up to $500,000 (including cash claims limited to $100,000).  For details, please see www.sipc.org.  NFS has arranged for additional protection for cash and covered securities to supplement its SIPC coverage. This additional protection covers total account net equity in excess of the $500,000/$100,000 coverage provided by SIPC.  Neither coverage protects against a decline in the market value of securities.

 

Will you work with my other advisors?

 

Yes, we believe that coordination with other advisors is important in order to construct a meaningful financial plan.

 

Can you refer me to other professionals if I need them?

 

Yes, we have strategic relationships with attorneys, CPAs, insurance agents, and other advisors if you need them.