DESCRIPTION OF FINANCIAL PLANNING SERVICES

Disclosure

Theodore J. Feight, CFP® provides financial planning consultation and investment advisory services attuned to the objectives and desires of each individual client.

In conjunction with the financial planning service he renders, Theodore J. Feight, CFP® provides advice regarding investments; therefore, Theodore J. Feight, CFP® is registered as an Investment Advisor under Creative Financial Design with the Securities and Exchange Commission and the State of Michigan Department of Commerce Securities Bureau.

This "Description of Financial Planning Services" (brochure) is provided in accordance with rule 204-3 under the Investment Advisor's Act of 1940, and should be reviewed prior to entering into a Financial Planning Agreement with Theodore J. Feight, CFP®.

The information provided in this brochure has not been passed upon or approved by the Securities and Exchange Commission nor has the Commission passed upon or approved the business practices of Theodore J. Feight, CFP®.

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Theodore J. Feight, CFP® believes that most individuals, small businesses, partnerships and corporations need assistance in managing their financial affairs in a knowledgeable and effective manner. This need is evidenced most often by the lack of coordination among the various aspects of financial planning.  Most successful individuals have accountants, attorneys, stockbrokers, insurance consultants and other advisors whose efforts,  though well founded in a specific discipline, may not necessarily coordinate with a sound financial plan.

Theodore J. Feight, CFP® accepts the responsibility of becoming a working partner with the Client and the Client's other advisors, undertaking a thorough review of the Client's financial affairs, and creating a written financial plan.  Theodore J. Feight, CFP® will, if asked, participate in the implementation of recommendations made in your financial plan (see "Other Compensation and Potential Conflicts of Interest").

Theodore J. Feight, CFP® is prepared to provide different levels of financial/investment plans, and the planning process normally includes the following steps:

1. The Client and Theodore J. Feight, CFP®, D/B/A Creative Financial Design execute an Agreement for Financial Planning/Investment Advisory Services.

2. Theodore J. Feight, CFP® completes a data-gathering process with the Client's cooperation and makes an analysis of the Client's present position in light of current circumstances and objectives.

3. Theodore J. Feight, CFP® prepares and presents a written financial plan to the Client.  The plan  includes  a  Client  profile, a statement  of  estimated  net  worth, an  analysis  of  cash  flow  and estimated tax position, a description of current investments,  an insurance outline, a first and  second death analysis and a simplified explanation of investment philosophy.

4. In the case of investment advisory services, the written plan may include observations regarding the Client's investment goals, objectives, risk tolerance and recommendations specifically tailored to those observations.  Normally, as part of the Client's plan, Theodore J. Feight, CFP® will furnish additional information, including recommendations for meeting short- and long-term living goals, estate planning goals or other analyses as agreed upon with the Client.

5.  After discussion of the written plan, Theodore J. Feight, CFP® will outline a program for implementation of recommendations if directed to do so by the Client.

 6. Theodore J. Feight, CFP® will then do ongoing consultation regarding all aspects of the Client's financial plan: for example, portfolio analysis, insurance portfolio review, corporate benefit package review and recommendations on these and other financial matters if directed to do so by the Client.

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Theodore J. Feight, CFP® establishes fees for financial planning/investment advisory services based upon his prior assessment of the relative complexity of the services to be rendered and estimated time to be expended on behalf of a prospective client.  Theodore J. Feight, CFP® reserves the right to recommend a particular level of plan, subject to approval of the Client.

Theodore J. Feight, CFP® charges a fee for the creation of a personal financial plan for  individual clients.  The fee is payable in two equal installments:   Fifty (50%) percent of the estimated fee is payable in advance of services rendered; the balance is due upon completion.    This fee usually is applied to the cost of an initial plan and one year's services related to implementation and monitoring of the plan.

Theodore J. Feight, CFP®’s initial fee for a financial plan will be quoted and agreed upon in advance.  It should be emphasized, however, that financial planning/advisory services constitute an ongoing process.  Changes occur in tax laws, the economic environment, investment markets and in the personal circumstances of the Client.  Therefore, Theodore J. Feight, CFP® encourages Clients to establish a long-term consulting relationship with their Financial Planner and to have their planning reviewed at least on an annual basis. 

Theodore J. Feight, CFP®, D/B/A Creative Financial Design, provides two basic types of investment advisory services for individual, corporate and qualified plan Clients.  First, Theodore J. Feight, CFP® will act as Investment Advisor to a Client by constructing and recommending investments in a portfolio that may include stocks, bonds, mutual funds, unit investment trusts, real estate and limited partnerships, among others.  All recommendations are based on Theodore J. Feight, CFP®’s understanding of the Client's financial situation, goals and preferences.  Fees for these advisory services are based on a percentage of the Client’s Assets being monitored by Theodore J. Feight, CFP® as described more fully in the  Financial Planning Agreement.

Second, Theodore J. Feight, CFP® can act as an Investment Consultant to bring a Client together with one or more outside professional investment managers to manage the Client's assets.  Theodore J. Feight, CFP® will work with the Client to establish a written investment plan, select an investment manager to match the Client's needs and provide ongoing reporting, monitoring and liaison services to ensure that management activities continue to meet Client's goals.  Fees for investment consulting services are based on a percentage of assets under management.

Clients should note that because mutual funds and ETFs (Electronically Traded Funds) pay advisory fees to their investment advisors and such fees are therefore indirectly charged to all holders of mutual fund and/or ETF shares, clients with mutual funds and/or ETFs in their portfolios are effectively paying both the Advisor and the mutual fund and/or ETF manager for the management of their assets.  Clients who place mutual fund and/or ETF shares under the Advisor's management are therefore subject to both the Advisor's direct management fee and the indirect management fee of the mutual funds  and/or ETFs manager.

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In addition, Theodore J. Feight, CFP® provides financial planning services specifically tailored to the needs and special circumstances of partnerships and corporations.  Such services, generally provided in cooperation with other professional advisors, include analysis and recommendations regarding the fringe benefits, compensation planning, investments, cross purchase and stock redemption agreements, qualified and non-qualified retirement programs and recapitalization.  Fees for partnership and corporate financial planning services are negotiated on a case-by-case basis after Theodore J. Feight, CFP®'s prior assessment of the complexities of the services to be rendered.

In addition, many partnerships and corporations recognize that the personal financial well-being of key officers and employees can have a positive effect upon the performance of their duties for the employer.  Therefore, such businesses often accept responsibility for providing personal financial planning consultation services for their key officers and employees as a fringe benefit.

Other Compensation and Potential Conflicts of Interest

Theodore J. Feight, CFP® is involved in providing various financial planning services on a fee only basis.  Theodore J. Feight, CFP® is not a registered representative of any broker dealer. 

Theodore J. Feight, CFP® does not receive commissions, 12b-1 fees or any form of compensation from any broker dealer.  He has severed such ties in an attempt to reduce possible potential conflicts of interest.         
 
While Theodore J. Feight, CFP® believes that accessibility to a wide range of products is often advantageous to the Client, the Client should understand that he or she is under no obligation whatsoever to purchase any products offered by Theodore J. Feight, CFP®.

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In conjunction with his financial planning services/advisory services, Theodore J. Feight, CFP® analyzes the current investments of his Clients and may make recommendations regarding retention, disposition, and/or repositioning of investments.  Theodore J. Feight, CFP®, D/B/A Creative Financial Design is a Registered Investment Advisor registered with the Securities and Exchange Commission and the State of Michigan Department of Commerce Securities Bureau.  Theodore J. Feight, CFP® will not, however, take possession of and will not accept discretionary control over any assets of his Clients.  

The general guidelines employed by Theodore J. Feight, CFP® in the recommendations of individual  strategies to his Clients include:

1. Diversification:      Diversification in a variety of investment vehicles is beneficial to balance risk while maintaining the possibility of gain.

2. Understanding Risk:    An understanding of the risk of capital loss, loss of purchasing power, as well as other risks, is central to a sound investment strategy.

3. Balance of Assets:   Investment planning requires a  balanced approach, with due consideration to short- and long-term liquidity needs, blending of lower-  and  higher-risk approaches, and combining income and growth concepts.

4. Professional Management:  Those who choose to devote their time to other endeavors and the unsophisticated investor should rely upon qualified experts to oversee  investment decisions.

5. Discipline:  Investment planning requires  a  disciplined approach.    The investor should commit to an investment approach for a reasonable period of time to allow it to work, since short-term emotional decisions often defeat a well-designed investment program.

6. Income Tax Considerations:   Economic benefits are the primary determinant in investment decisions, thus  relegating income tax considerations to a secondary role  in the evaluation of investment alternatives.

7.  Economic Benefit:  In any investment, the economic benefits to the investor are generally in the form of cash income, appreciation and tax savings.  The investor must determine an appropriate mix of these benefit sources to match personal investment objectives.

With regard to the recommendations made by Theodore J. Feight, CFP® respecting specific vehicles for implementation of a Client's financial plan, Theodore J. Feight, CFP® shall employ the following guidelines:

1. Independent Sources Review:   Theodore J. Feight, CFP® will undertake the regular review of independent source materials, including a wide range of financial periodicals to keep abreast of significant industry as well as individual company developments.

2. Specific Product Knowledge:   Theodore J. Feight, CFP® will analyze specific product data including corporate  annual reports, corporate releases, confidential memoranda and/or a prospectus as may be appropriate to  any  particular recommendation.

3.  Independent Inquiry:   To the extent that access is available, Theodore J. Feight, CFP®, in appropriate cases, will make direct contact with the principles involved in any investment offering to ascertain and/or verify  pertinent data.

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Theodore J. Feight, CFP® was born in 1946.  He received his BS in Petroleum Sales and Management, with a business minor, from Western Michigan University in 1972. Theodore J. Feight, CFP® graduated from the College for Financial Planning in Denver Colorado, in 1988.  He was authorized to use the CFP® (Certified Financial Planner™) marks by the International Board of Standards and Practices for Certified Financial Planners™ in 1988. Theodore J. Feight, CFP® completed the courses and testing for the Institute of Certified Divorce Financial Analysts in 1997.  He was authorized to use the CDFA (Certified Divorce Financial Analyst) mark by the Institute of  Certified  Divorce  Financial  Analysts.  

In association with the National Association of Life Underwriters, Theodore J. Feight, CFP®  has   taught   the   Life  Underwriters Business Course on Business Planning.   His organization memberships include the National Association of Personal Financial Advisors (NAPFA), the Financial Planning Association and The Financial Planning Association of Michigan.  He is a currently a director on the board of directors of the NAPFA Midwest Board of Directors  and Commemorative Bucks of Michigan.  He is the past president of the Financial Planning Association of Michigan and the Michigan Association of Divorce Professionals.

Theodore J. Feight, CFP® has spent thirty six years in the financial planning industry with Mutual Benefit Life, Bankers Life of Iowa, General American Life, Mutual Service Corporation, VESTAX Securities Corporation and Creative Financial Design.  In 1980, Theodore J. Feight, CFP®, founded Creative Financial Design and currently serves as its owner. 

At present, Theodore J. Feight, CFP® performs advisory activities for Creative Financial Design; he is not a registered representative of any broker dealer; and he is not licensed with any life insurance company.  Theodore J. Feight, CFP® has sometimes ghost written financial plans for other Registered Representatives throughout the United States. 

Theodore J. Feight, CFP®, D/B/A Creative Financial Design, is a duly Registered Investment Advisor. Theodore J. Feight,  CFP® is  not licensed to practice law nor engage in tax or accounting practice.  Therefore, any client of Theodore J. Feight, CFP® should not expect to receive legal, tax or accounting advice from Theodore J. Feight, CFP®.  Nor should any client of Theodore J. Feight, CFP® rely upon any comment or interpretation by Theodore J. Feight, CFP® as to any legal, tax or accounting matters.  It is recommended that all clients of Theodore J. Feight, CFP® consult with their own independent legal, tax and accounting advisors insofar as legal, tax and accounting matters are concerned.