The Cambridge Difference
Cambridge Advisors are the pioneers of holistic financial planning--planning that focuses on the person, not a product. It's a higher standard of financial planning, one that makes the advisor the client's advocate and emphasizes education and wisdom. But let's first take a look at what has traditionally been called financial planning.
Stockbrokers and commissioned mutual fund salespeople frequently call themselves financial planners, even when they are not credentialed as such. In reality, they are paid to sell you investment products, particularly the proprietary investment products of the company they work for. They may provide you with a document called a financial plan, but it's usually filled with boilerplate text describing how their products will do everything you need. The consumer is left wondering who the profits the most from the product.
Many life insurance salespeople also ride the financial planner bandwagon. In reality, they are paid to sell you life insurance policies. According to them, there is an insurance policy (or annuity) for all of your financial needs. Almost always, these are permanent insurance products (whole life, universal life, variable universal life) that pay the highest commissions and continue to pay commissions as long as you renew the policy. They are the originators of the financial plan document, a veritable book filled with projections for the future...as long as the future works out just as projected. The consumers rarely understand just what it is they are buying or exactly how much they are paying for it.
Money managers emphasize the return on their investment portfolios and while they may also offer a "comprehensive financial plan," it is incidental to their primary focus, which is gathering and managing as many assets as possible. Since there are almost always assets that they can't and don't manage--employer retirements plans and personal real estate are a couple of examples--the consumer tends to wonder just how comprehensive their plan truly is. Money managers are usually paid a percentage of the assets under their management and tend (for obvious reasons) to prefer to work only with high net worth clients.
CPAs and other tax professionals are the newest group of professionals to hang out the financial planner shingle. Unfortunately, the vast majority who provide financial planning services do so on a product sale, commission basis. While it may seem a natural fit to "buy" your IRA from your tax preparer, the consumer still is left wondering whose interests are best being served.
All of these financial planning providers share certain common characteristics: they have a set toolbox of solutions to offer you, their focus is on which of their tools is the right one for you, and their compensation is based on getting you to use that tool. It brings to mind the saying that "when the only tool in your toolbox is a hammer, everything starts to look like a nail."
There is a better way. Cambridge Advisors offer an alternative we call holistic (or life-integrated) financial planning. It is founded on the principles that:
- Financial planning is not an event, nor is it something done "to you"--it is a continuous, life-long process that requires your active involvement.
- You are far more in control of your financial future than you have been led to believe.
- Your values, your beliefs, and your attitudes about money are of primary importance in the financial planning process.
- You need financial strategies developed for "real people," not for pension funds and institutional investors.
- True financial independence lies in knowing how much is enough.
When you work with a Cambridge Advisor, you can expect:
Objective Advice--Cambridge Advisors are free from the conflicts of interest that plague others who call themselves financial planners. Their compensation is not based on the outcome of any transaction they recommend. Their complete focus is on what is best for you.
Accessibility--When you work with your Cambridge Advisor on an open-retainer basis, not only will you have regularly scheduled tax and financial reviews, but you also can call your advisor or schedule an appointment whenever an unexpected problem or new opportunity arises--and it won't cost you a penny more!
The Most Comprehensive Advice Available--Amazingly, most "financial planners" pay little or no attention to taxes or your personal residence, even though these two items probably represent your largest financial commitments. As experienced, credentialed financial planners, Cambridge Advisors integrate all the financial areas in your life - including taxes and real estate - into one overall, comprehensive plan.
Value-Based Pricing--Cambridge Advisors are not the least expensive financial advisors you will find, but each advisor is committed to providing value that exceeds his or her fee. If an advisor does not believe that you will realize savings that add up to more than your fee, you will not be accepted as a client, or you will be offered a retainer option more appropriate to your situation.
To locate a Cambridge Advisor in your area, visit our Find an Advisor page, or learn more about Working with a Cambridge Advisor.