WHY CHOOSE DIAZO?
The United States currently has more than 300,000 financial advisors in some capacity.
We at Diazo are aware you have a lot of options to choosing who to partner with to create your financial independence.
This is why we have created a firm that:
1. Always put our clients needs and goals first
2. Pairs you with professionals that maintain the CFP® and the CFA® designations
3. Provides concierge financial planning
WHAT IS A FIDUCIARY?
A fiduciary is someone who is required to put a clients interests ahead of their own.
WHEN SHOULD YOU WORK WITH A FIDUCIARY?
When you are looking to partner with financial advisor, you want the best information en route to achieving your financial goals:
Business Valuation and Selling
A fiduciary will always ask themselves, “how does this benefit the client first”? With further questions like;
How much can they spend in retirement?
Is their income plan sustainable?
Is their risk aligned with their investment portfolio?
FIDUCIARY VS. SUITABILITY
Within our industry there are 2 separate standards by which financial advisors operate, one being fiduciary, the second being by suitability. While these may seem similar they are very different in their reality and application. While suitability merely ensures that the investment or product being sold to you needs to check the requisite boxes, it leaves quite a bit of leeway when it comes to what products are suitable.
These products are typically sold for a commission and may or may not be the best situation for you to be in. Conversely a fiduciary has both a moral and legal obligation to ensure that you are getting the best product, while at the same time the best price and execution of the product or investment portfolio. Many advisors today are held to a much lower standard through suitability, ensure you are working with a fiduciary who, at their core has to put your interests above their own.
TEAM OF PROFESSIONALS
When working with Diazo Wealth Group you will be paired with 2 industry recognized professionals, first your advisor will be a Certified Financial Planner® or CFP® and secondly all of our clients portfolios are managed by a Certified Financial Analyst® or CFA®. This means the professionals you are partnering with have shown an acumen and education level within the industry that is rare, with less than 25% of advisors holding the CFP® and less than 5% of advisors holding the CFA®.
Let’s take a deeper look at what that means for you and your plan:
WHAT MAKES A CFP® DIFFERENT?
Most people think all financial planners are “certified,” but this isn’t true. Just about anyone can use the title “financial planner.” Only those who have fulfilled CFP Board’s rigorous requirements can call themselves a CFP® professional.
CFP® professionals are held to strict ethical standards. What’s more, a CFP® professional must acquire several years of experience related to delivering financial planning services to clients and pass the comprehensive CFP® Certification Exam before they can call themselves a CFP® professional.
Financial planning is a dynamic process. Your financial goals may evolve over the years due to shifts in your lifestyle or circumstances such as an inheritance, career change, marriage, house purchase or a growing family. As you begin to consider how best to manage your financial future, you should feel confident knowing that with a CFP® professional, you’re working with someone committed to providing the high standard of financial planning.*
THE CFP® PLANNING PROCESS
The CFP planning process is a 6 step fiduciary process that takes you from beginning to monitoring:
ESTABLISH A RELATIONSHIP WITH A CFP® PROFESSIONAL. Your financial planner is required to explain his or her financial planning services and define each of your responsibilities. Along with compensation, you’ll discuss how long the professional relationship can last and how to make decisions.
2. GATHER YOUR DATA AND DEVELOP YOUR FINANCIAL GOALS. You should gather any necessary documents and talk to your planner about your current financial situation. Together, you can define your personal and financial goals, including timeframes. You may also want to discuss your comfort level when it comes to taking financial risks.
3. ANALYZE AND EVALUATE YOUR FINANCIAL STATUS. Your CFP® professional will consider all aspects of your situation to determine what you need to do to meet your goals. Depending on what services you’ve asked for, your planner may analyze your assets, liabilities and cash flow, current insurance coverage, investments or tax strategies.
4. REVIEW YOUR CFP® PROFESSIONAL’S RECOMMENDATIONS. Your CFP® professional will go over his or her financial recommendations, explaining the rationale so you can make informed decisions. At this stage, share any concerns with your planner so any recommendations can be revised if necessary.
5. SET YOUR COURSE. You and your CFP® professional need to agree on how the recommendations will be carried out. Your planner may carry out the recommendations or serve as your coach, coordinating the process with you and other professionals, like attorneys or stockbrokers.
6. BENCHMARK YOUR PROGRESS AGAINST THE FINANCIAL GOALS YOU ESTABLISHED. As you work toward your goals, you and your CFP® professional need to decide who monitors your progress so you stay on track. If the planner is in charge, he or she will check in from time to time, reviewing your situation and making any necessary adjustments to his or her recommendations.
THE CFA® GENERAL PRINCIPLES OF CONDUCT
Managers have the following responsibilities to their clients. Managers must:
1. Act in a professional and ethical manner at all times.
2. Act for the benefit of clients.
3. Act with independence and objectivity.
4. Act with skill, competence, and diligence.
5. Communicate with clients in a timely and accurate manner.
6. Uphold the applicable rules governing capital markets.
ASSET MANAGER CODE
A. LOYALTY TO CLIENTS
1. Place client interests before their own.
2. Preserve the confidentiality of information communicated by clients within the scope of the Manager–client relationship.
3. Refuse to participate in any business relationship or accept any gift that could reasonably be expected to affect their independence, objectivity, or loyalty to clients.
B. INVESTMENT PROCESS AND ACTIONS
1. Use reasonable care and prudent judgment when managing client assets.
2. Not engage in practices designed to distort prices or artificially inflate trading volume with the intent to mislead market participants.
3. Deal fairly and objectively with all clients when providing investment information, making investment recommendations, or taking investment action.
4. Have a reasonable and adequate basis for investment decisions.
5. When managing a portfolio or pooled fund according to a specific mandate, strategy, or style:
a. Take only investment actions that are consistent with the stated objectives and constraints of that portfolio or fund.
b. Provide adequate disclosures and information so investors can consider whether any proposed changes in the investment style or strategy meet their investment needs.
6. When managing separate accounts and before providing investment advice or taking investment action on behalf of the client:
a. Evaluate and understand the client’s investment objectives, tolerance for risk, time horizon, liquidity needs, financial constraints, any unique circumstances (including tax considerations, legal or regulatory constraints, etc.), and any other relevant information that would affect investment policy.
b. Determine that an investment is suitable to a client’s financial situation.
CONCIERGE FINANCIAL PLANNING
At Diazo Wealth Group we are a planning first firm that builds out a financial independence blue print for each of our clients. We go in depth to each of our clients unique situations and help to craft a plan that not only suits but optimizes their financial lives, and helps our clients to reach financial fulfillment.
We do this by focusing on our advice value stack and menu of services.
The advice value stack takes a look at your entire financial planning picture and focuses on the items that apply to you and your unique situation. Through the lens of the value stack we incorporate our menu of services here:
How much can I spend in retirement?
When can I retire?
Can I travel?
How much should I save?
When do I take my Social Security?
Where should I save?
How should I be invested?
What is my risk number?
Taking appropriate risk
Strategic asset allocation
Intentional asset location
Customized investment strategy
Proper business valuation
What kind of retirement plan should I have?
How can I maximize my charitable deductions?
Is my estate plan current?
The family dynamics discussion
College planning and front loading
Personal financial website
24/7 account access
Family financial analysis
Real estate and mortgage
Life and Health insurance
Property and Casualty (Home and Auto)