Online Investment Advisor 401(k) 403(b)

Frequently Asked Questions

Below are answers to common questions about our firm and services.

Investing Services

How does it work?

Clear.Investments is a software solution that factors:

Your goals
Your trade-offs
Your current accounts and savings
Your current investments

We take all of those into account and provide you with specific recommendations on how to move your investments around to match our goals and take advantage of our recommended strategy.

We then provide you with specific, advisor reviewed written thoughts on your savings strategy related to the goals as you listed them.

Where will my investments be held?

Under Clear.Investments, we review your current investments exactly where they are at. If you move them, we may recommend they stay in the same investment, or that you change them to a preferred fund at the new custodian.

We will recommend investments that fit our market-based investment preferences at the current investment custodian, as well as provide recommendations should you desire other opinions.

If you choose to hire Clear Financial Advisors to implement your plan, we may recommend certain custodians to hold your accounts. If you would like to implement yourself but still would like a recommendation we are glad to provide one.

If you have choices as to where to hold your 403(b) accounts with your current employer, or have the opportunity to utilize a self-directed brokerage account with your 401(k) provider (where you can access a brokerage account outside of the standard investment selections) we can provide recommendations for that account as well.

Can you manage my 401(k) or 403(b)?

Yes. While Clear.Investments requires you to make investment changes, Clear Financial Advisors (CFA) does provide detailed portfolio opinions and holistic advisory services.

In limited circumstances and depending on the retirement plan provider CFA can directly manage your 401(k), 403(b), or other retirement plan should you choose to engage us to do so.

Can you provide a second opinion on my investment plan?

Yes. We do provide recommendations as a part of the Clear.Investments monthly service, however, we are also glad to provide a more detailed analysis and second opinion of your current portfolio. More details are available at Clear Financial Advisors main website.

Investment Philosophy

How do you recommend I invest?

Clear.Investments utilizes a non-market timing strategy that includes asset classes that provide different characteristics toward meeting your goals.

We call our strategy G/P/S Investing, which recognizes the three goals of an investor to provide for growth, preservation of purchasing power, and stability.

Our bias is towards investments that provide the greatest control, ability to rebalance, and to companies that recognize they are stewards of client assets, not just managers who buy and sell securities.

We also generally will recommend a holistic view of your finances, rather than place a model portfolio in each account a client may have. Many advisors and brokers view your relationship based on the size of each account that you hold, and automate their trading with model portfolios for each account for their convenience.

Do you recommend mutual funds?

We prefer institutional mutual funds as the investment vehicle for our Wealth Management engagements for many asset classes. Many retail mutual fund firms have not exercised appropriate care of their clients money in recent years. Also, the retail mutual fund structure may lead to higher costs that are passed onto their shareholders.

Under Clear.Investments we recommend either mutual funds or exchange-traded funds, depending on the investment custodian you select.

These recommendations are based on your contraints towards your willingness to implement, desire for advice, and requirements as a part of a workplace plan.

We typically recommend clients with portfolios greater than $50,000 consider our Wealth Management relationships to provide a more personal and comprehensive plan where we may recommend institutional class mutual funds in addition to ETFs. Under Clear Financial Advisors (CFA) wealth management and review relationships, many of our asset class choices are held with Scottrade Institutional where we utilize Dimensional Fund Advisors (DFA) mutual funds.

Do you recommend exchange-traded funds?

Yes, for Clear.Investments we may recommend exchange-traded funds (ETFs), or we may recommend mutual funds, simply depending on the constraints a client places on us based on where they must or choose to hold their funds. ETFs provide us access to many investment asset classes for a low cost and are typically avilable at any custodian.

Do you recommend individual stocks or bonds?

We recommend stock ownership through mutual funds, exchange-traded funds, and to a much lesser degree through collective trusts or variable annuity separate accounts.

The risks of owning individual stocks or trying to choose the best fund manager are simply not rewarded by the market. Most subject portfolios to significantly higher risk, without the corresponding return.

We may recommend individual bonds to cover known cash outlays. Often times this will take the form of a bond ladder for retirees. Our longer-term bond positions are generally held in mutual funds for diversification over multiple asset classes, cost benefits available to institutional buyers, and professional management of the portfolio.

Other Services & Financial Planning

Can you provide financial planning services?

Yes, we provide hourly and flat-fee financial planning services. Please see our website at Clear Financial Advisors for more information.

About Our Firm

How are you unique?

The name Clear was chosen to represent how we believe financial services should be provided:

With clarity. There are many terms that advisors use that are meant to confuse. For example, most independent fee-based advisors work for a brokerage firm, and that firm is often owned by an insurance company. We hope to provide true independence, and make it a point to speak to individuals in common language, and not broker-speak.
With transparency. You should know if your advisor is choosing your investment products based on compensation they receive, or because they or their broker represent another company's interests. Financial advice should be delivered without regard to the interests of a provider of financial products.
To help you clear obstacles. The old paradigm of the advisor serving as gatekeeper to a product is quickly being destroyed. Products with costs that were not long ago only available with minimum investments of $1 million dollars are now available for $100. An advisors value today is in helping clients do the right thing, rather than selling them the latest gimmick product or variable annuity.

As a truly independent and fee-only firm we are unique in our field. Our menu service approach allows us to serve clients on their terms and allows us to continue to work with clients as their needs change.

Clear Financial Advisors is a nationally recognized expert in investments and an award winning financial advisory firm. You can learn more about our credentials at our company website.

How long have you been in business?

Our predecessor firm providing financial education and information to individuals, business, and the military was founded in 2003. CFA registered as an investment advisor in 2011.

Are you a fee-based advisor?

We are a Fee-Only firm. Fee-based is a term used by advisors who sell financial products such as mutual funds, life insurance, and annuities. As a Fee-Only advisor and NAPFA member we do not receive a dime from products that we may recommend.

What is the Garrett Planning Network?

Garrett Planning Network (GPN) is a nationwide network of hundreds of fee-only financial planners who provide a menu of service options. GPN members are often recognized as experts in personal finance, as they provide truly objective and independent advice.

CFA's clients benefit from our ability to tap into the experiences and wisdom of all of the GPN member advisors.

What is NAPFA?

The National Association of Personal Financial Advisors (NAPFA) is a national organization that is the leader in promoting Fee-Only financial planning.

Commissioned fee-based advisors wear many hats, At times they may be providing independent financial planning advice; other times they are representing an insurer; and other times they are selling a product that has been selected by the brokerage they are employed by.

Fee-Only advisors have one master to serve, and that is our client. We are only compensated by our clients and have no requirements to recommend certain products or providers over others.

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