CRS Conversation Starters

Conversation starters: Ask your financial professional:

Investment Advice and Services:

 

Given my financial situation, should I choose an investment advisory service?

If you have questions about investing or if you should start to invest, you can review pertinent information about an advisor before you meet. As an Independent financial adviser, we are required to publicly disclose details about out business by filing a Form ADV.  The Form ADV is on the SEC website for federally registered financial advisors at www.adviserinfo.sec.gov.

Why or why not?

Deciding to choose a financial advisory firm is a personal decision. Identifying your objectives will help you select an advisor who is in tune with your goals and objectives.  The right fit will depend on your comfort level with the team, your risk tolerance, time horizon, income needs, tax situation, other holdings - such as real estate - and any other needs that may involve complex planning.

You will want to select an advisor you’ll be comfortable working with and someone who welcomes your questions and provides answers you can understand. If you do not feel an advisor would help you reach your goals and these situations do not apply to you, this may not be the time in your life for choosing an advisor.

How will you choose investments to recommend to me?

When you decide to become a client with American Financial Advisors, LLC, you will complete a Investment Profile Questionnaire.  Our process of recommending investments begins by reviewing your answers and scores to these questions and assigning an overall risk profile for your accounts. This is then used to determine the best model allocation along with additional factors such as age, goals, and lifestyle.  

What is your relevant experience, including your licenses, education, and other qualifications?

Our website and ADV describe the licenses, education, and other qualifications.

What do these qualifications mean?

Michael David Stark has earned the following designation(s) and is in good standing with the granting authority:

Series 63 A securities license entitling the holder to solicit orders for any type of security in a particular state. The Series 63 exam mainly covers state laws and regulations.

Series 65: The Uniform Investment Adviser Law Examination consists of 130 questions plus 10 pretest questions.  NASAA believes that the Uniform Investment Adviser Law Examination will significantly benefit the industry and state regulators alike by such uniformity. The investing public will be afforded a greater degree of protection through enhanced uniform qualification standards.

Patrick Francis Viglotti has earned the following designation(s) and is in good standing with the granting authority:

Chartered Retirement Planning Counselor CRPC®

Individuals who hold the CRPC® designation have completed a course of study encompassing pre-and post-retirement needs, asset management, estate planning and the entire retirement planning process using models and techniques from real client situations. The program is designed for approximately 120-150 hours of self-study. The program is self-paced and must be completed within one year from enrollment.

Andria Jo Williams has earned the following designation(s) and is in good standing with the granting authority:

FPQP™ - Financial Paraplanner Qualified Professional

Individuals who hold the FPQP™ designation have completed a course of study encompassing the financial planning process; the five disciplines of financial planning; and general financial planning concepts, terminology, and product categories. The program is designed for approximately 80-120 hours of self-study. The program is self-paced and must be completed within one year from enrollment.

CMFC®: Chartered Mutual Fund Counselor:

Individuals who hold the CMFC® designation have completed a course of study encompassing all aspects of mutual funds and their uses as investment vehicles. The program is designed for approximately 120-150 hours of self-study. The program is self-paced and must be completed within one year from enrollment.

Michael James Coelho has earned the following designation(s) and is in good standing with the granting authority:

The CFP^® certification is one of the top generalist marks financial planners can earn. This high-quality, rigorous program covers a broad base of financial planning subject areas and trains certificants in the discipline of financial planning. Applicants must complete an approved educational program consisting of either five or six college-level courses in such subject areas as insurance planning and risk management, the financial planning process, investment planning, income tax planning, retirement planning, and estate planning. Alternately, candidates may sit for the comprehensive exam if they have previously earned one of the following professional credentials or educational degrees: CPA, ChFC^®, CLU^®, CFA, Ph.D. in business or economics, DBA, or JD.

Series 65: The Uniform Investment Adviser Law Examination consists of 130 questions plus 10 pretest questions.  NASAA believes that the Uniform Investment Adviser Law Examination will significantly benefit the industry and state regulators alike by such uniformity. The investing public will be afforded a greater degree of protection through enhanced uniform qualification standards.

For any additional information on these designations, visit: www.finra.org.

Fees:

Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?

AFA, LLC is a Fee only advisor.  We do not sell commission products or charge additional fees. The full amount of $10,000 will be invested for you.*  When you invest with AFA, LLC we do not charge a fee until your account reaches $20,000. We invest primarily ETF’s and Index funds.  There is generally NO fee for these transactions. However, if any mutual funds are purchased in your account, the fee can be approximately $20 which is a fee charged by the custodian for the execution of the trade for the mutual fund company.

*If you are on our 401k platform, you will pay an initial fee of $250 for your account setup, but your full $10,000 is invested for you in the same manner as above. 

Conflicts of Interest:

How might your conflicts of interest affect me, and how will you address them?

We do not act as a broker dealer or custodian, so many potential conflicts of interest are avoided. AFA, LLC and its associates do not receive commissions, bonuses, or other compensation on the sale of securities or other investment products. There is no motivation to recommend products that do not fit with your portfolio.

A potential conflict would arise if we bought or sold a security in our personal accounts that was beneficial and did not initiate the same transaction in our client’s account at the same time.  In this situation, we would review the transactions, process a correction to ensure the client received the more beneficial treatment.

Legal or Disciplinary History:

As a financial professional, do you have any disciplinary history? For what type of conduct?

American Financial Advisors, LLC and its advisors do not have any legal or disciplinary history.

Additional Information:

Who is my primary contact person?

In some cases, your initial meeting may be conducted by one of our advisors or associate advisors.  As a small firm, the roles of our principal and staff overlap and we communicate regularly and maintain all current activities in a common customer relationship system, so we are all able to assist when you contact us. At times, you may also have a specific question for someone specific on our team and we are all available to assist with your questions.

Is he or she a representative of an investment adviser or a broker-dealer?

American Financial Advisors, LLC is an independent registered advisor.  We are not a broker-dealer.

Who can I talk to if I have concerns about how this person is treating me?

If you ever have concerns about how you are being treated, the first person to speak to would be Michael Stark. In addition, each trusted member of our team is always available to hear any concerns you may have.