description of financial services
TRANSCRIPT
Brian J. Krawiec, CFP®, ChFC®, CLU®
Potomac Financial GroupAn Independent Firm
4061 Powder Mill Road, Suite 705Calverton, MD 20705
301-595-8600
©2015 Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPCRaymond James® is a registered trademark of Raymond James Financial, Inc.
Material prepared by Raymond James for use by its advisors.
Helping clients make
informed decisions with their
wealth in their pursuit of
financial freedom
BRIAN J. KRAWIEC, CFP®, ChFC®, CLU®
CERTIFIED FINANCIAL PLANNER™
CHARTERED FINANCIAL CONSULTANT®
CHARTERED LIFE UNDERWRITER®
FINANCIAL ADVISOR, RAYMOND JAMES FINANCIAL SERVICES
As a CERTIFIED FINANCIAL PLANNER™ practitioner, Brian provides investment management and financial planning services to the clients of Potomac Financial Group. He monitors investment portfolios and financial plans for clients of the group, and he conducts regular reviews with clients to give them a clear picture of their progress. By
providing timely feedback and recommending adjustments as needed, Brian ensures that Potomac Financial Group’s clients stay on track in achieving their goals in various areas of financial need, such as retirement planning, estate planning, and college‐education planning.
As a Chartered Financial Consultant®, Brian meets the advanced planning needs of clients facing unique challenges and circumstances. In addition to counseling professionals and business owners in areas of executive compensation arrangements and business planning, he helps clients plan for and navigate issues associated with more complex family relationships (including those involved with caring for a special‐needs family member, those with blended households, and those faced by non‐traditional families and members of the LGBT community).
As a Chartered Life Underwriter®, Brian helps clients preserve their wealth and financial independence by addressing the various risks associated with their personal and professional lives. He helps to protect the individuals and families he works with by evaluating the threats that early death, disability, and loss of self‐sufficiency pose to their financial well‐being. By advising on a wide variety of planning issues in personal settings (such as the need for appropriate life, disability, and long‐term care coverage) and business environments (including continuation planning, the lifetime sale or gift of a business interest, and key employee coverage), Brian helps to ensure that the plans of his clients aren’t jeopardized by the unexpected.
Brian received his Doctorate of Philosophy degree in physiology from the Pennsylvania State University by way of the Milton S. Hershey Medical Center. Prior to his studies at Penn State, Brian attended the University of Maryland at College Park and received his Bachelor of Science degree in kinesiology. A native of Gaithersburg, Maryland, Brian continues to reside in his hometown. He is an avid professional‐ and collegiate‐sports fan, and enjoys the (very) occasional 5K road race, exercising, and spending time with family and friends.
MY MISSION – Why I ServeTo help my clients achieve financial freedom and personal fulfillment by managing their assets, planning their finances, protecting their wealth, and building their
financial legacies.
MY APPROACH – How I Do ItBy serving my clients with a consultative and collaborative approach that examines all aspects of their financial lives before any action is taken, all while putting my clients’
interests above my own.
MY OBJECTIVE – What I Strive ForTo accomplish my mission by providing my clients with exceptional guidance,
exemplary service, and a sense of confidence.
OVERVIEW : MY MISSION
Simply put…I want to be the last financial advisor you will ever need or want to have.
WHY WORK WITH A PROFESSIONAL FINANCIAL ADVISOR?
Those individuals who have important financial goals and want to make smart choices with their money need to have a plan!
• Frequently, a missed goal, costly financial mistake, or financial catastrophe are consequences of a failure to plan and NOT a result of planning to fail.
• Individual investors have historically underperformed relevant benchmarks. The lack of a well‐thought‐out plan leaves individual investors vulnerable to emotions and natural biases that may result in poor market‐timing decisions.
Working with an advisor to craft your plan can bring clarity to your finances, simplify your financial life, and help you achieve your goals.
• Significant life events, such as retirement and wealth transfer, are complex and require careful planning. Most people do not have the desire, time, and expertise/knowledge needed to confidently manage all aspects of their finances as they navigate their lives.
• Enlisting the help of an advisor can help to coordinate your various areas of financial need, reduce the complexity of your financial life, and put you on a path to attain your life’s goals.
There is no assurance that any strategy will ultimately be successful or profitable nor protect against a loss.
Source: AllianceBernstein Investments. 2005 Survey of Financial Advisors on Asset Allocation
Asset allocation does not ensure a profit or protect against a loss. Investing involves risk and investors may incur a profit or a loss.
Not paying enough attention to asset allocation33%Having too much
money in one investment
16%
Buying overvalued investments
8%
Other1%
Holding on to investments too long
11%
Trying to time the market31%
THE MOST DETRIMENTAL INVESTOR MISTAKES
Past performance is no guarantee of future results. ©2009 DALBAR, Inc. This information is for illustrative purposes and seeks to demonstrate the virtues of a buy-and-hold strategy rather than trying to time the market. The calculations assume a $10,000 initial investment over the specified time period from 1988 through 2008.
8.4%
2.9%
1.9%
7.4%
0.8%
Barclays Capital AggregateBond Index
AverageBondFund
Investor
AverageStockFund
Investor
InflationS&P 500
Please refer to disclosures on the next slide.
INDIVIDUAL INVESTORS HAVE UNDERPERFORMED
The fact that buy‐and‐hold has been a successful strategy in the past does not guarantee that it will continue to be successful in the future.
The average (equity and fixed income) investor refers to the universe of all (equity or fixed income) mutual fund investors whose actions and financial results are restated to represent a single investor. Average (equity and fixed) investor returns arerepresented by a change in assets, excluding sales charges, redemptions and exchanges.
This method of calculation captures realized and unrealized capital gains, dividends, interest, trading costs, sales charges, fees, expenses, and any other costs.
Equity performance is represented by the Standard & Poor's 500 Composite Index (an unmanaged index of 500 widely held stocks). Fixed Income performance is represented by the Barclays Capital Aggregate Bond Index (an index which measures changes in the fixed‐rate debt issues rated investment grade or higher. The aggregate index is comprised of the government/corporate, the mortgage‐backed securities and the asset‐backed securities indices).
Inflation rate represents the monthly value of the consumer price index and is converted to a monthly rate. The monthly ratesare used to compound a "return" for the period under consideration.
An investor cannot invest directly in an index. Index returns do not reflect the deduction of fees, trading costs or other expenses.
ADDITIONAL CHART DISCLOSURES
OVERVIEW : THE ADVISORY PROCESS
You and Your Goals:
The Center of the Process
Understand:The Discovery
Process
Plan:Design an
Appropriate Plan
Implement:Put Your Plan into Action
Monitor and Adapt:
Track and Adjust Your
Plan
How I help clients effectively planand manage their finances…
Step 1 : Completing the Discovery Process• Perform a comprehensive analysis of your current
financial picture• Identify your financial strengths and vulnerabilities• Define your financial goals
Step 2 : Designing Your Strategic Plan• Prioritize your financial goals• Carefully consider all of your available options • Agree on a course of action customized to your goals
Step 3 : Implementing Your Plan• Take actionable steps towards achieving your goals• Employ investment and/or insurance solutions as needed• Coordinate your plan among the various professionals in
your team (CPA, attorney, etc…)
Step 4 : Monitoring and Adapting Your Plan• Manage your plan as you move towards fulfillment of
your goals• Monitor the progress of your plan with periodic reviews• Review and revise your plan as “life happens” and your
goals change
Insurance ServicesReview of current insurance coverages and (if necessary) application for additional
individual life, disability, or long‐term care insurance
Comprehensive Financial PlanningFinancial planning addressing one or more major areas of your finances, including:
OVERVIEW : SERVICES OFFERED
Services are offered independently of one another and can be completed in conjunction/collaboration
with other experts and professionals with whom you already work (CPAs, attorneys, etc…).
• Cash flow management and budgeting
• Investment planning • Retirement planning • Educational expense planning• Risk management/insurance planning
• Income tax planning
• Estate planning • Employee benefits planning• Business continuation planning• Executive compensation planning
Investment ManagementPredominantly fee‐based investment management services
Billed separately from financial planning and insurance services
COMPREHENSIVE FINANCIAL PLANNING : BUILDING TO FINANCIAL INDEPENDENCE
Income Tax Planning
Death
Legacy Planning
The critical wealth issues I help clients navigateas they build their way to financial freedom…
• Making it – Tracking Income and Expenses
• Keeping it – Income Tax Mitigation
• Protecting it – Asset Preservation
• Enhancing it – Investment Strategies
• Enjoying it – Spending Strategies
• Transferring it – Lifetime and Estate Transfers Charitable Giving Estate Planning
Retirement Planning
Education Planning
Wealth Building and Asset
Accumulation
Maximizing Tax Efficiency
Net Worth Determination
Cash Flow Analysis and Budgeting
Emergency Funding/Short‐term Liquidity
Disability Sickness Long‐Term Care
Liability Protection
FINANCIAL FREEDOM
Retirement Income Planning Discretionary Spending on Wants and Wishes
INVESTMENT MANAGEMENT : A DISCIPLINED APPROACH TO MANAGING WEALTH
“The essence of investment management is the management of risks, not the management of returns. Well‐managed portfolios start with this precept.”
‐ Benjamin Graham
The most important objective of managing your money is to achieve your financial goals, NOT to try and beat the markets or any particular index!
The process begins with your personal goals …
… focuses on managingthe risks of investing …
… controls the things that we can …
As investors, we can control the investments we select, we can minimize money lost unnecessarily due to expenses by understanding the cost of those investments, and we can work to reduce the burden that taxes impose on our investment returns.
… plans for the things we cannot …
As investors, we must humbly accept that we cannot control the health of the economy, the direction of the stock and bond markets, the amount of inflation we experience, or the current level of interest rates. But we can plan for them and diversify our investments accordingly.
… and limits the biggest threat to long‐term success.
Our behavior is the single biggest long‐term risk to our success as investors. Recognizing when we are reacting emotionally and without regard to our long‐term plan is vital to avoiding the mistake of “buying high and selling low.”
How I help clients invest wisely andaccumulate wealth for their future goals…
Diversification does not ensure a profit or guarantee against a loss.
To protect their privacy and personal confidential information
To provide a disciplined approach to financial planning and investment management, with a focus on their needs and their goals
To provide objective recommendations that put their interests and well‐being ahead of any other consideration
To always explain the benefits, the risks, and the costs associated with any planning or investment recommendation I provide
To thoroughly explain things using basic terminology and to make certain they understand recommendations BEFORE any action is taken
To provide them with frequent communication as well as timely responsiveness to their questions and concerns
To be blunt with them, whether the news is good or bad; I will NOT be judgmental of their financial picture, but I will tell them how I see things
I promise the following to all of my clients:
THE THINGS I PROMISE MY CLIENTS
MY CREDENTIALS : A PROFESSIONAL COMMITMENT TO MY CLIENTS
I am committed to providing the highest level of service to my clients.I achieve this in part by earning professional designations and certifications. Each involves the
completion of rigorous educational and experience requirements as well as adherence to a strictcode of ethics and professional conduct in working with clients and the public.
Chartered Life Underwriter®
Chartered Financial Consultant®
In earning the nation’s foremost designation in life insurance management, a CLU ® can provide expert advice on a broad range of topics involving insurance planning for individuals, families, and business owners. Learn more at: www.cluhigheststandard.com
CERTIFIED FINANCIAL PLANNERTM
In achieving the most widely recognized and acclaimed credential in financial planning, a CFP ® professional has completed an extensive certification process allowing them to advise on all aspects of personal finances. Learn more at: www.letsmakeaplan.org
By completing the most comprehensive educational program available today for financial planning professionals, a ChFC® can help meet the advanced planning needs of individuals and families in complex financial situations. Learn more at: www.chfchigheststandard.com
The decision to hire a professional financial advisor should take into account the quality and professionalism of the firm that stands behind them.
In choosing to do business with me, you are also doing business with Raymond James.
It is important that you understand how my relationship with Raymond James benefits you by providing me the tools and resources to execute my objective to serve clients to the best of my abilities.
OVERVIEW : A PARTNER IN RAYMOND JAMES
THE RAYMOND JAMES ADVANTAGE
Raymond James’ culture and extensive resources enable me to serve my clients effectively with their best interests as my top priority.
Raymond James was the first financial services firm to create a Client Bill of Rights and Responsibilities in 1994. Today, our industry has recognized this document as a best practice and many firms have followed its example.
Why Raymond James?
THE FIRM HAS AN INDIVIDUAL CLIENT FOCUSRaymond James is a firm with its roots in the business of providing financial guidance and planning to individual investors and families. This remains the firm’sprimary business today. Raymond James has been a leader in the industry with client‐focused decision‐making since the company’s founding in 1962.
FULL RESOURCES OF A LARGE, MULTINATIONAL FINANCIAL SERVICES FIRMRaymond James is one of the largest financial services firms in the United States, with the scale and resources to support a wide array of products and services. With more than 10,000 associates worldwide and $496 billion in client assets*, the company’s business includes investments brokerage, professional asset management, insurance solutions, trust services, investment banking, and private and commercial banking
A CULTURE OF INDEPENDENCE AND OBJECTIVITYAs a Raymond James financial advisor, I am given flexibility and independence to serve my clients without a corporate “push” of proprietary products. I have access to one of the widest platforms of product choices and account types in my industry with access to over 300 mutual fund families, 51 money managers and 34 insurance carriers. The culture of independent thinking allows me to act in the best interests of my clients and to be innovative in finding solutions to meet their needs.
*As of 3/31/2015The information provided is for informational purposes only and is not a solicitation to buy or sell Raymond James Financial stock.
1. Think carefully about what you want out of a relationship with a financial advisor.
2. Decide if a relationship with me would be beneficial.
3. Give me a call and ask for a Financial Inventory questionnaire as the first step in your financial Discovery Process.
4. Arrange a follow‐up meeting or conference call so we can discuss how I may best be of service to you.
NEXT STEPS
If you are serious about wanting to make informed decisions with your finances,
… have important financial goals and want to improve the future for yourself and your loved ones,
… want a financial plan that aligns with your needs, wants, wishes, and values,
… and want the help of an independent financial advisor to simplify and coordinate your finances and/or tomanage your investments…
Then we should talk.
Potomac Financial GroupAn Independent Firm
4061 Powder Mill Road, Suite 705Calverton, MD 20705
T 301-595-8600 // F 301-595-0669www.potomacfinancialgroup.com
Securities offered through Raymond James Financial Services, Inc.
Member FINRA/SIPC
©2015 Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPCRaymond James® is a registered trademark of Raymond James Financial, Inc.
Material prepared by Raymond James for use by its advisors.
Brian J. Krawiec, CFP®, ChFC®, CLU®