I’m on vacation this week.  Thanks so much to Cathy Curtis, of Curtis Financial Planning, for allowing me to interview her.

Tell us a little about yourself

I am a Fee-Only independent financial advisor, a Certified Financial Planner practitioner (CFP) and a Registered Investment Advisor (RIA) registered with the State of California. I own a firm based in the San Francisco Bay Area, Curtis Financial Planning, and I have been in business for 8 years. I specialize in the finances of women, their families and their businesses.

Why did you become a financial planner?

 My previous career was in sales and marketing management in the food industry.  I gained valuable business experience and made a good, stable living but I didn’t feel like I was making much of a difference in people’s lives. I wanted to be of service as well as enjoy what I was doing.   Financial planning fits the bill for me perfectly.

What advice would you give someone interested in a career in financial planning?

When I left my old career, I was seeking freedom from corporate structure, so I decided to start out on my own.  This is probably the hardest way to build a financial planning practice – not only because you can’t share expenses with anyone, but it can be isolating.  I would recommend starting off with a partner or partners or an established firm  I would also decide what kind of planner you want to be – fee-only, fee-based or commission-based.  I am biased towards the fee-only model because I feel it has the least conflicts of interest and serves my clients well, but investigating the pros and cons of all three is a good idea.  If you do start your own firm, decide early one what how much and what type of fees you will charge for which services, and then decide which tasks you will do yourself and which tasks you want to outsource.  The key to success is not getting bogged down doing everything yourself. Identify your strengths and the let someone else do the rest.

For those who prefer the services of a professional, how do you suggest someone choose a financial planner?

As I mentioned earlier, I am biased toward the fee-only model, which means that the advisor does not earn their fees from commissions on product sales.  The best place to learn more about fee-only advisors is on the NAPFA (National Association of Personal Financial Advisors) website www.napfa.org. On this website, you can also search for a planner in your area.   There are a few steps I recommend in choosing a planner:

• Ask how they are paid
• Find out how they are licensed and if their licenses are current
• Don’t hire someone that asks you to write a check to them.  Find an advisor that uses a custodian where your money is deposited in your name.
• Check out references.
• Interview at least three planners and see if you have personal chemistry and if they listen to you.  

What are series 65 and 66? Is this something that matters when choosing a planner?

Series 65 and 66 are minimum competency examinations given to professionals with the investment industry.  Both exams are assembled by FINRA (Financial Industry Regulatory Agency).  In my opinion, it is more important that you check whether your advisor is registered with the state they live and practice in, or with the SEC (Securities Exchange Commission).  Also, choosing a planner who has achieved the Certified Financial Planner designation is a wise idea.  Fee-only NAPFA registered advisors and Certified Financial Planners are held to the highest fiduciary standards – meaning they are expected to put the clients interest first at all times in order to maintain their designation and membership.

I’ve been seeing mention of t-bills and muni bonds in the news of late, due to all the fearfulness of being in the stock market right now.   What are these and do you suggest for readers?

I can explain what T-bills and muni bonds are, but I would not presume to recommend to anyone unless I knew what their personal risk tolerance, age and financial objectives were.  But these explanations may help.

T-Bills or Treasury Bills are short term (maturities up to one year) government securities. They are very safe as they are backed by the full faith and credit of the United States Government.  Because of this federal backing, they are considered to have a risk-free rate of return.    But the returns are not high, so not always suitable for particular investors.

Muni bonds or Municipal Bonds are debt obligations of a state or local government. The funds raised may support general government needs or special projects.    They are most suitable for investors who have large tax burdens as the interest is generally exempt from federal tax.  In the case that the bond is bought by a resident of the state that issued the bond, the interest payments are also exempt from state tax. Interest payments are further exempt from local tax if they are bought by residents of the locality that issued the bond.  Depending on the issuer and project muni bonds are considered fairly safe investments and can have good returns.

What financial advice do you have for the self-employed among us?

• Separate your personal and business expenses – have a separate checking account and credit card for business and for personal.  Keep a good record of all your business expenses during the year so you are not scrambling and wasting time finding things at tax time.    
• Develop a business plan, even a simple one, and update it every year.  Make sure it includes cash flow projections so you know if you business will generate the cash you need to keep it going and pay you an income.
• Develop a support network of other self-employed people so that you don’t feel isolated and you get the support that you need. 

Last but not least, what is your favorite pf book?

Right now I am reading the updated version of Your Money Or Your Life by Vicki Robin and Joe Dominguez.  It is a book that attempts to teach people how to develop a healthy relationship with money in order to live more deliberately and meaningfully.    It will make you stop and think whenever you pull your wallet out of your pocket or your purse to buy something new.

Once again, thanks so much to Cathy for a wonderful interview!