Mark Phillips & Associates
19712 MacArthur Blvd., Suite 225
Irvine CA 92612
(949) 333-6394
Interview Questions and Answers as of January 2013
Do you have experience in providing advice on the following topics? If yes,
indicate the number of years.
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Retirement Planning – Since November 2000
Investment Planning – Since November 2000
Tax Planning – Since November 2000
Estate Planning – Since November 2000
Insurance Planning – Since November 2000
Comprehensive Planning – Since November 2000
Education Planning – Since November 2000
Business Planning – Since November 2002
What are your areas of specialization?
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Retirement Income Management/Coordination from investment and
pension sources.
Small Business Owner Issues: Retirement Plan Implementation &
Management, Benefits Planning, Valuation.
What qualifies you in this field?
Training (CFP® professional certification and related course work, AIF®
designation and related coursework, ongoing education) and Experience
planning/investing for over 400 families and spending well over 7,000
hours meeting and discussing their issues with them, providing
recommendations and helping them with implementing the solutions.
How long have you been offering financial planning advice to clients?
Since November 2000.
How many clients do you currently have?
Just over 110 Households and entities (pensions, businesses, etc.)
Briefly describe your work history.
After completion of initial training with American Express Financial
Advisors in mid 2000, and obtaining the applicable securities
registrations, I began working with new and assigned clients in November
2000. By late 2003 I was advising over 350 families and entities
(businesses) as an employee advisor with American Express Financial
Advisors.
In 2003, I became an independent (non-employee) advisor within the
American Express Financial Advisor network. Over the following seven
years I intentionally reduced our client base to about 100 households and
businesses, increased my staff support for my clients, and moved into
dedicated office space designed to better support our client service.
In early 2010 I affiliated with Commonwealth Financial Network® as my
Broker Dealer and Registered Investment Advisor partner. Over the past
12 years we have evolved the practice to focus more on comprehensive
planning and advice, investor outcome management, and support for client
action and service, all on a transparent fee basis.
Prior to 2003 I worked for a fortune 500 firm and as a regional manager
for an internationally based chemical company.
What are your educational qualifications?
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Bachelors in Business Admin., National Univ. 1989
Masters in Business Admin., Pepperdine Univ. 1993
Certificate in Personal Financial Planning , Univ. of California, Irvine 2003
What financial planning designation(s) or certification(s) do you hold?
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CERTIFIED FINANCIAL PLANNER™ Certificant
Accredited Investment Fiduciary®
What financial planning continuing education requirements do you fulfill?
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CFP® – 30 hours of pre-approved coursework every two years
AIF® – 6 hours of pre-approved coursework every year
FINRA – 6 units of pre-approved coursework every year
CA Dept. of Insurance – 24 hours of pre-approved coursework every two
years
What licenses and registrations do you hold?
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Insurance - Life & Health, Variable Contracts (CA Insurance Lic.# 0D07767,
FL, NV)
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Securities -General Securities Representative (Series 7), Uniform
Combined State Law and Investment Advisor Representative (Series 66)
Are you or your firm licensed or registered as an investment adviser with any
states and/or Federal Government?
I am an Investment Adviser Representative of Commonwealth Financial
Network, an SEC-registered Investment Adviser . Please refer to
Commonwealth Financial Network’s ADV II for details.
How are you going to tell me when you are acting as a sales agent of the
brokerage firm and when you are acting as an investment adviser?
I am generally working for you in the fiduciary roll of your advisor unless I
specifically say otherwise (when presenting an insurance or investment
product for you to purchase on a commissionable basis).
Will you provide me with your disclosure document Form ADV Part II or its state
equivalent?
Yes. Please find this in the “Initial Meetings Materials” folder I have
provided.
Will you provide me with a written disclosure detailing any disciplinary history
for you or your firm?
See ADV II for broker/dealer, I, as an individual advisor, have no adverse
disciplinary history at this time.
What services do you offer?
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Comprehensive and issue specific Advisory Service in all of the areas listed
in the first answer above and more.
Investment management services.
Ability to act as an agent on your behalf for your purchase of Life, Health,
Disability, and Long Term Care Insurance – only if we mutually agree to the
appropriateness. Fixed insurance products and services offered through
Mark Phillips & Associates are separate and unrelated to Commonwealth.
Ability to act as agent for the commissioned purchase of registered
securities if required and prudent.
Who will work with me?
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Planner/Firm Principle - Mark Phillips, MBA, CFP®,AIF®
Associates:
o Eric Figarsky, CFP® (Senior Paraplanner, Registered Staff Member *),
o Nicholas Bautista (Paraplanner, Registered Staff Member*),
o Tracy Chiu (Administrative Assistant)
*Registered through Commonwealth Financial Network
Will the same individual(s) review my financial situation?
Mark Phillips, MBA, CFP®, AIF® as Planner and Advisor, along with Eric
Figarsky, CFP® and/or Nick Bautista as Paraplanners are solely
responsible for reviewing your financial situation. All advice will come
from Mark. Eric and Nick help with analysis and may communicate Mark’s
advice to you.
What type of clients do you serve?
Professionals, Small Business Owners, many clients fast approaching
retirement or in the midst of retirement.
Do you have a minimum net worth or income requirement?
No, however we have a minimum willingness requirement to work with us
to engage in the process of planning and implementation. We also require
that you be able to benefit from the relationship and planning process.
How are you paid for your services?
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Fee - for ongoing financial planning and advice and for asset management.
This makes up approximately 90% of our total revenues.
Commission - for insurance and one off investing actions. This generally
makes up less than 10% of what clients pay to work with us.
What do you typically charge?
A. Fee:
• Hourly rate – $220/hour. However, we do not typically charge by the
hour
• Flat fee (range) - From $1,000 (single individual, simple issues) up to
$6,000 annually for small business, complex issues
• Percentage of assets under management fee: From 1.30% down to
0.35% annually (please see the Investment Management Section)
B. Commissions:
In the rare cases that you might choose to purchase a commissionable
product, I will happily share with you exactly what the commission pay out
is.
Do you have a business affiliation with any company whose products or services
you are recommending?
No. We do not have a direct financial interest in the business success or
failure of any product or service company we might recommend. While we
would like to see their products succeed (for our clients’ sakes) that is the
extent of our concern.
Is any of your compensation based on selling products?
Only to the extent these are commissioned products, as stated above. We
do not receive any “override” compensation or supplemental commission
from any product company for reaching a sales target with them.
Do professionals and sales agents to whom you may refer me send business, fees
or any other benefits to you?
We do not receive any direct financial benefit. Only in as much as they may
refer a client of theirs to my practice do we receive any benefit whatsoever.
Is the account that you are offering an "advisory account," or is it a "brokerage
account" exempt from investment adviser registration?
For investment management I am offering an Advisory Account. I am acting
as a fiduciary in my relationship to you. As a fiduciary, I am required to
act in your best interest.
If your circumstance does not make investment management appropriate
for your investments we can discuss a brokerage account through me that
you may invest in.
Regarding any brokerage account that I may open, what are the potential conflicts
of interest that you have when recommending certain products for sale to me, and
how will you disclose these to me prior to purchase, including any special cash
payments or incentives that you receive?
For commissionable accounts only, I receive different commission
compensation when you purchase different mutual funds, or individual
stocks. We typically only open commissionable brokerage accounts to
accommodate small investment accounts or for securities you hold and do
not want to sell and would therefore require no management. We are very
clear to disclose all fees you may pay and revenue we may receive.
Are you an owner of, or connected with, any other company whose services or
products I will use?
No. I provide advisory services through my affiliation with Commonwealth
Financial Network. I am able to offer insurance products from over 25
insurance companies through my appointment with each. I have no equity
(ownership) in any of these firms.
Do you provide a written client engagement agreement?
Yes, for both comprehensive planning services, and for asset management
separately.
How might you address my particular needs?
Because needs are very client specific we will discuss your situation and
goals together to determine just how I propose to help you address your
particular needs. This will be determined before you engage my services.
How often will my plan be updated?
Virtually every time we meet or that we are aware of changes in your
financial circumstances. Some of these changes are significant, requiring a
change of action on your part, and some will prove not to be so. At a
minimum we review and fully update your plan annually.
Are you affiliated with any professional associations?
Financial Planning Association (FPA)
Financial Services Institute (FSI): Panelist for the national FSI conference
January 2013
• Ongoing panelist for the University of the Pacific Arthur A. Dugoni School
of Dentistry Alumni meeting
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Mark Phillips, MBA, CFP®,AIF® (CA Insurance Lic. 0D07767) is a registered representative and
investment adviser representative with and offers securities and advisory services through
Commonwealth Financial Network, member FINRA/SIPC, a registered investment adviser.