ABOUT
I lived through the Great Crash of 1987, calling clients and telling them “not to sell at the bottom.”
Elizabeth Hafkin Pleck, PhD, CFP®
Elizabeth Hafkin Pleck has a BA, MA, and PhD in American history from Brandeis University.
I first became interested in financial planning after my father was hit by a car while crossing a highway at night and suffered permanent brain damage. My father needed to be cared for in a nursing home for the rest of his life. My mother had always turned to me in crises and depended on me to handle everything. For the first time I learned about what Medicare covered and what it did not pay for, the small payment from an auto company for being hit by an uninsured motorist, and the costs of nursing home care. About the same time I was denied tenure as a college professor and looking for a new career which made use of the quantitative, research, and organizational skills I had developed. I graduated from the College of Financial Planning in Denver, Colorado in 1985 and started my own firm.
By 1987 I lived through the Great Crash of 1987, calling clients and telling them “not to sell at the bottom.” I returned to college teaching in 1994 and continued to manage investment portfolios of long-time clients.
I have been quoted in local and national media, including The New York Times. As a result of my experience as a college professor, I know a great deal about the benefits universities offer, the tax situation of college professors, and the way that academics can be taken advantage of because of their often limited financial know-how.
Together with my husband, I live in Wellesley, Massachusetts and I have a grown son who lives in Joahnnesburg, South Africa. I start the day by reading The New York Times, the Wall Street Journal and checking the financial markets and usually end it by watching a movie from Netflix and reading history or biography.
WHY FINANCIAL STRATEGIES?
The hardest thing in the world to understand is the income tax. —Albert Einstein.Security
The feeling that comes with knowing that you have done the best you could for you and yours—is the main goal of financial planning—then there is paying for a child’s college or retiring comfortably where you want to live.
Independence
Financial Strategies, LLC does not sell products. We are an independent, fee-only financial planning service. The only compensation is from the fees paid by clients, not from any sales commissions. There are no sales quotas, no pressure to persuade a client to buy a certain product. The advice we offer is entirely based on the big questions: Where are you now? Where do you want to be? How do you get from here to there? What are your concerns for the next generation? How to overcome the blockages that have kept you from getting your money matters accomplished?
Flexibility
Unlike other certified financial planners, Financial Strategies does not believe that a “comprehensive financial plan” is what everyone needs. Some people need that; most don’t. We offer different services for different people: hourly brief engagements for do-it-yourselfers; ongoing management of financial assets who want lifetime management of their assets, and a written comprehensive financial plan with implementation (and an expected yearly review) for those who want the financial equivalent of a comprehensive physical exam.
Experience
Elizabeth Hafkin Pleck has over 35 years of experience as a Certified Financial Planner and has helped many couples and their children. When you become a client, you work directly with Elizabeth. The experience is highly personal, based on building lasting relationships.
OUR CLIENTS
My clients want someone who thinks about their retirement as much as they do, and gets back in touch with them, sometimes anticipating a problem before they do. I am looking for clients who need my firm, who know little or nothing about financial matters, hope to find someone they can trust, a confidante who anticipates their needs, and wants the personal touch, and are wary of someone trying to sell them something they don’t really need.
Most clients come from other clients who have recommended me.
My youngest client is in her thirties and most of my clients are close to retirement or are retired. Many are college professors or employees of international organizations; several live outside the U.S. Quite a few are professional women. Many of my clients have been with me for many decades. My greatest satsifaction is at the end of a session, a client says to me, “Thank you Liz, for getting me to do all the things I needed to do.” And, “Liz, what you have done for me is a real mitzvah.”
SOME OF THE BIGGEST MISTAKES MY CLIENTS MAKE
1. Not taking full advantage of the benefits at work
2. Not following up, thinking that that the task is done just because the paper work was in process
3. Not checking the tax return after it has been prepared
4. Getting financial advice (or advisors) from a brother-in-law
5. Not teaching your adult(ing) kid how to take control of their monthly spending.
6. Not reading over retirement statements
7. Not knowing how to read a brokerage statement
8. Not getting a credit card that charges no foreign transaction fees.
9. Not eliminating subscription services and streaming services you don’t use.
10. Not getting accounts linked to facilitate electronic transfer of funds
11. Not having a will
FAQS
What is a Certified Financial Planner (CFP®) ?
-I walked into the lobby of Fidelity Investments recently and asked for some brochures. After a few minutes a friendly man appeared who handed me a folder and described himself “a financial planner.” He handed me his card, which said he was “an investment representative.” I checked his credentials online; he’s a stockbroker. Yes, everyone these days can call themselves a financial planner. A CFP, that is a Certified Financial Planner, has taken courses in financial planning, has work experience in the field, and has passed a comprehensive two-day exam certifying his or her ability to advise clients in the areas of estate planning; insurance; investments; retirement planning; income taxes and planning, and general financial planning. Don’t get me wrong–I had a broker’s license. I know about stocks, but it’s only one of several topics of importance. A Certified Financial Planner is also required to engage in continuing education programs as long as they are in business. The CFP certification is increasingly seen as a required standard for financial advisors.
What does fee-only mean?
Fee-only planners do not sell any products–no annuities, no life insurance, no long term care insurance, no mutual funds, no limited partnerships. Years ago I gave up my licenses to sell insurance and securities in order to be entirely fee-only. Clients pay a fee for independent, objective advice. My only source of compensation is fees paid by clients. Fees come from hourly fees, charges for financial plans (drawing them up, implementations, yearly reviews) and from fees charged for assets under management.
Is the fee tax deductible?
No, not any more.
How can I get started?
Call 781-772-1548 or email elizabethpleck@gmail.com. There is no fee for an initial one-hour get acquainted meeting.
Can I pay you for a couple of hours of advice?
Yes, I charge an hourly fee of $150 an hour. I have set my hourly fees low in order to attract middle-income clients and build my business since I have just moved back to Massachusetts. The hourly fee is especially useful if you want a second opinion or you have a small number of issues that require immediate attention. For hourly consultations there are no written recommendations and no agreement that we will meet again.
If you decide to sign on for a comprehensive financial planning after the free one hour get acquainted meeting, what happens next? You will be asked to bring all your financial papers and documents to the next meeting; you will be asked to fill out two questionnaires, one about your financial matters and the other about your tolerance for various kinds of financial risks. During the meeting you will be presented with a written copy of the form ADV Part II and a copy of my privacy policy. (These forms are also available on this website). Form ADV provides you with information about my qualifications, services, fees, and investment philosophy. You will be asked to sign forms agreeing to the planning arrangement and will be given an estimate and maximum cost of the fees for a comprehensive plan. You will be asked to make a down payment on the total fee. Sometimes this second meeting will be specific enough to gather all the information needed. Other times additional meetings will be needed. A comprehensive financial plan covers cash flow analysis; debt management and budgeting; insurance planning; college education planning; investment management; tax planning; retirement planning; and estate planning. It will come with a set of recommendations and the assumption that working together we will implement the recommendations. There’s no point in paying for a file folder that you do not act upon. You commit yourself to filling out the forms, hanging on the phone while Musak plays, and going to the bank to get your signature notarized until you have made the necessary changes in your finances. I follow the rule: keep it simple, but even so, forms and phone calls are required.
What is a Registered Investment Advisor (RIA)?
I am an RIA in Massachusetts and thereby answerable to the regulatory authorities of Massachusetts. An RIA is required to meet the so-called fiduciary standard, which is a legal responsibility requiring an advisor to put the best interests of a client ahead of all else. Stockbrokers and insurance sales people adhere to a weaker suitability standard, that the investment should be appropriate, but not necessarily the best one. Advisors with insurance companies and brokerage houses often are compelled by their employers to pitch the firm’s products, such as mutual funds or share of initial public offerings they manage. These products often come with much higher fees and costs than other investments that could be obtained instead. The investments they recommended are suitable, even appropriate—just not the lowest cost option or the best possible choice.
Do you have minimum asset requirements if you manage my investments?
If you chose to hire me as an ongoing investment asset manager, the minimum account size I manage is $200,000.
What is discretionary authority?
It means having the ability to place trades on behalf of clients, without asking their opinion first. I have this authority over accounts I handle but not over the actual funds, which are held in custodian accounts at Charles Schwab. The account is visible 24/7 at Charles Schwab via their website.
Does your firm take taxes into account when managing investment portfolios?
Absolutely. We will be very familiar with a client’s tax situation before placing any trades. When necessary, we use tax loss harvesting (selling capital losses to offset capital gains) to reduce a client’s taxes.
Must I live in the Boston area to work with you?
No, I have clients living elsewhere–and in several foreign countries.
Can you do our taxes?
We are happy to work with your tax professional but do not do this work here.
I follow the Prudent Speculator newsletter and I believe in Monte Carlo simulations. And you?
None of that here. I prefer index funds but I will also chose some individual securities and non-index funds as well. I favor a buy and hold investment strategy, but upon occasion, I will buy and sell on a short term basis. I set a long term goal for asset allocation and periodically buy and sell various holdings to stay on target. I mix some degree of active portfolio management with efforts to take advantage of specific market conditions. I do believe that one should put one’s eggs in several baskets as a means of achieving diversification (even though that doesn’t always make things better).
Will I be working with Elizabeth Hafkin Pleck or with an associate?
With her. And, I will be happy work with your other financial professionals.
RESOURCES
THE FIDUCIARY OATH
Under the Fiduciary Oath
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- I shall always act in good faith and with candor.
- I shall be proactive in my disclosure of any conflicts of interest that may impact you.
- I shall not accept any referral fees or compensation that is contingent upon the purchase or sale of a financial product.
The Fiduciary Oath
The advisor shall exercise his/her best efforts to act in good faith and in the best interests of the client.
The advisor shall provide written disclosure to the client prior to the engagement of the advisor, and thereafter throughout the term of the engagement, of any conflicts of interest, which will or reasonably may compromise the impartiality or independence of advice offered.
The advisor, or any party in which the advisor has a financial interest, does not receive any compensation or other remuneration that is contingent on any client’s purchase or sale of a financial product.
The advisor does not receive a fee or other compensation from another party based on the referral of a client or the client’s business.
PRIVACY POLICY
As an independent financial planning firm, Financial Strategies, LLC is committed to safeguarding the confidential information of all current, former, and potential clients.
All personal information provided to our firm is held in the strictest confidence. These records include personal information we collect from you in connection with any services or potential services provided by Financial Strategies, LLC.
We have never disclosed information to nonaffiliated third parties, except as required by law or by your consent. We use your information in helping you meet your personal financial goals while guarding against any real or perceived infringements of your rights of privacy.
Our policy with respect to personal information about you is listed below:
Information Kept Private; Sharing Limited to Need to Know
Access to your information is limited. For unaffiliated third parties that require access to your personal information, including financial service companies, consultants, and auditors, we also require strict confidentiality in our agreements with them and expect them to keep this information private. For example, state regulators may review firm records as permitted under law. Federal regulations permit us to share a limited amount of information about you so that our firm can discuss your financial situation with your accountant or lawyer.
Secure Environment
We maintain a secure office and computer environment to ensure that your information is not placed at unreasonable risk.
Categories of Information Collected
The categories of nonpublic personal information that we collect from a client depend upon the scope of the client engagement. These categories may include information about your:
- personal finances and insurance;
- personal goals, dreams, and health to the extent needed for the planning process;
- transactions between you and third parties; and from consumer reporting agencies.
Maintenance of Information
Personally identifiable information about you will be maintained during the time you are a client, and for the required time that such records are required to be maintained by federal and state securities laws, and consistent with the CFP Board Code of Ethics and Professional Responsibility.
CONTACT
Elizabeth Pleck at Financial Strategies