Topic: Financial Planning

  • Understanding the Role of a Registered Investment Advisor (RIA) and What It Means for You

    When it comes to financial planning and investment management, selecting the right advisor is one of the most critical decisions you can make. One term you may frequently encounter is “RIA,” which stands for Registered Investment Advisor. But what does that really mean, and why is it important for those seeking professional financial guidance?

    Understanding an RIA

    An RIA is a firm or individual registered with the Securities and Exchange Commission (SEC) or a state regulatory agency, depending on the assets under management. RIAs provide financial advice and investment management services while adhering to strict regulatory requirements designed to protect investors.

    At Confluence Financial Partners, being a Registered Investment Advisory means that we are committed to transparency, personalized service, and, most importantly, acting in our clients’ best interests.

    The Fiduciary Standard: Acting in Your Best Interest

    One of the most significant distinctions of an RIA is the fiduciary duty it upholds. As fiduciaries, RIAs are legally and ethically required to prioritize their clients’ financial well-being above all else. This obligation includes:

    • Providing objective advice
    • Fully disclosing any potential conflicts of interest
    • Ensuring recommendations align with each client’s financial goals

    At Confluence, our fiduciary responsibility guides financial strategies and tailors them to your unique situation, helping you pursue goals with confidence.

    What to Expect When Working with a Registered Investment Advisor

    Choosing to work with a Registered Investment Advisor like Confluence Financial Partners provides several opportunities:

    • Personalized Wealth Management: We take the time to understand your specific needs and aspirations, crafting customized financial plans and investment strategies.
    • Transparent Fee Structure: Our compensation model is designed to align with your success, with no hidden commissions or incentives.
    • Objective Advice: As fiduciaries, we are committed to offering independent, research-driven financial guidance that is in your best interest.
    • Regulatory Oversight: With strict SEC or state regulations in place, RIAs are held to high standards of accountability and client care.

    What This Means for Confluence Clients

    For clients of Confluence Financial Partners, our status as a Registered Investment Advisor represents a commitment: our commitment to act with integrity, to provide prudent guidance, and to help you achieve financial confidence. We embrace our fiduciary duty because we believe that trust is the foundation of every successful financial relationship. Whether you’re planning for retirement, growing your wealth, or navigating complex financial decisions, you deserve an advisor who is not only experienced but also required to put your best interests first.

    Take the Next Step with an RIA You Can Trust

    If you’re looking for a financial partner who prioritizes your goals and well-being, we invite you to start a conversation with Confluence Financial Partners. Let’s work together to build a strategy that aligns with your vision for the future.

    Gregory Weimer
    About the Author

    Gregory developed a passion for the financial services industry early in life, drawn to the meaningful impact investing and thoughtful financial planning can have on people’s lives.

    McMurray

    724-271-8801
    gregory.weimer@confluencefp.com
    Email Greg

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    Gregory Weimer

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  • Should Millennials Plan on Social Security?

    Social Security, started in the 1930s as a part of FDR’s New Deal, has been under fire since I can remember. All the while, the program has been helping fund the retirement of some 47 million Americans, with another 19 million on survivor or disability benefits. What started out as a way to ensure elderly Americans had some form of income has turned into a major piece of the US economy.

    As we help our younger clients plan for retirement, we often hear, “Let’s not plan on Social Security, I don’t think it will be there by the time I retire.” While we understand where this attitude is coming from, we don’t think it reflects reality.

    Here’s why:

    • Social Security is funded by a separate payroll tax (FICA) that comes out of paychecks up until an individual reaches $160,200 in earned income (2023). That means, that for the first $160,200 each earner makes, 6.2% goes to Social Security, with another 6.2% coming from the employer.
    • That’s a total of $19,864 that goes to Social Security for someone who earns $160,200.
    • These amounts are then paid out directly to retirees, survivors, and disabled individuals.

    As long as there are people working in the United States, there will be money going into, and then out of Social Security.

    “But what about the trust fund?”

    • As discussed above, Social Security is funded directly from payroll taxes. Up until very recently, the ratio of working to non-working Americans had been high enough that Social Security benefits were fully funded each year.
    • However, as Baby Boomers retire and birthrates continue to decline, this is changing. If payroll taxes are not enough to current obligations, the difference is paid by the asset reserves in the Social Security trust fund. As more and more workers retire, the trust fund is expected to be depleted.

    By the most recent estimates, the trust fund assets will be spent down by 2034. At that point, Social Security would officially be insolvent.

    “That’s what I mean! Once Social Security is insolvent, I won’t get any benefits!”

    But what does insolvency actually mean?

    • Assuming no legislation is passed to shore up the program, all benefits will be cut to about 79% of what they are today.
    • 79% is not 0%. Far from it, in fact, 79% is still solid amount of guaranteed income that the younger generation can plan on as a piece of their overall retirement picture.

    “That’s it? That doesn’t sound as bad as what I’ve read in the news.”

    No, it doesn’t. For younger workers who have plenty of time to factor such a possibility in their long-term planning, the potential reduction would not be life changing. A relatively modest increase to retirement savings would make up for the potential shortfall.

    In reality, Congress will be forced to act, there will likely be changes to Social Security at some point. These changes will probably make sure that current benefits are not cut, and that Americans with no time to adjust will not have the rug pulled out from under them. For younger Americans, the fact remains that as long as we have workers and payroll taxes, Social Security will be there in one way or another.

    Disclaimer: This analysis could certainly change pending action by Congress. We are in no way trying to predict the future, but we believe this analysis is reasonable based on the current landscape.

    Randy Holcombe
    About the Author

    The opportunity to make a positive difference in people’s lives is why Randy chose a career in wealth management. He is passionate about helping his clients achieve their goals and cut through the constant noise of the day-to-day financial markets.

    Grove City, Pittsburgh

    724-458-5233
    randall.holcombe@confluencefp.com
    Email Randy

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    Randy Holcombe

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  • Is Your Family Financially Prepared for the Unexpected?

    If you were gone tomorrow, would your family be financially OK?

    That is a jarring question, and one that most of us try to avoid.

    As difficult as this scenario is to consider, however, we owe it to ourselves and our loved ones to be able to answer the question with certainty.

    Below are some points to consider:

    • Estate Plan
      • Do you have up to date wills, trusts, and other applicable documents? Have you gone through the documents in the past 5 years? What has changed since they were written? Is it time for an update?
      • Does your estate plan help and encourage family collaboration while safeguarding relationships? Many a family has been torn apart by disputes regarding an inheritance.
    • Life Insurance
      • Do you have life insurance in place? Is it enough so that your spouse and children would not have to worry about money when you are gone?
      • We can’t control very much in this situation, but we can control the windfall that our dependents would receive if we die unexpectedly.
    • Communication
      • Do your loved ones know the structure of your estate plan? Do they know what your expectations are for the money? If you have young children, this may be a conversation to have with your spouse and the person who would be the legal guardian for your children. If you have adult children, this could be a family meeting where the plan is fleshed out in more detail.
      • Studies show that aging parents have a difficult time bringing up finances with their children. This is understandable, but it needs to happen at some point. Your adult children can handle it, and the risks of them knowing how much money the family has pale in comparison to the burden that an unexpected inheritance can be.
    • The Things No One Thinks About
      • Passwords, document locations, lock boxes, safe combinations, utilities, iPhone lock codes, and anything else that your loved ones would need.
      • If you knew you weren’t going to wake up tomorrow, what information would your loved ones need to handle everything? Consider a tool like everplans to help with this.
    • Trusted Person
      • Is there someone in your life whom trust to be there for your family if something happens to you? We work with many clients who view us as that person who they trust to be across the table from their spouse should this situation arise. We are often one of the first calls that is made, because we know where everything is and we’ve helped clients through this before.

    So, we ask again.

    If you were gone tomorrow, would your family be financially ok?

    If you aren’t sure, take time to reflect. We at Confluence Financial Partners have been helping clients answer that question in the affirmative for decades, and we would be honored to be able to help you as well. We know this isn’t a pleasant thing to work through, but it’s worth it, and you owe it to those you love.

    Randy Holcombe
    About the Author

    The opportunity to make a positive difference in people’s lives is why Randy chose a career in wealth management. He is passionate about helping his clients achieve their goals and cut through the constant noise of the day-to-day financial markets.

    Grove City, Pittsburgh

    724-458-5233
    randall.holcombe@confluencefp.com
    Email Randy

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    Randy Holcombe

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  • 3 Signs It’s Time to Talk to a Financial Planner

    Are you thinking about hiring a Financial Planner? If you’re under 45, this is a must read…

    By: Gregory Weimer, CPA and Chuck Ziants, Wealth Managers

    Managing your financial affairs and planning for retirement can be daunting no matter who you are or what your situation is. If you’re like most people, your mind has 60,000-80,000 thoughts per day that could range from paying off debt or planning a vacation to of course… what am I going to have for dinner tonight. The financial aspects of your life such as budgeting, saving, and planning for retirement often get pushed to the side in favor of the thoughts that have more of an immediate impact on your daily life. This is completely normal, but a major mistake that people of all ages make. The earlier you begin to get your financial affairs in order, the easier it will be down the road. Your older self will be thanking your younger self one day!

    In our opinion, there are three fundamental reasons when it might be time to talk with a financial planner. Notice, we said the word “might”, this means that if you have had any of the following three thoughts or concerns you should at the minimum have a phone conversation or meeting with a planner. It’s important to determine if it is the right fit before you jump in with both feet.

    • You need a basic roadmap to achieve your short, intermediate, and long-term goals.

    At a high level, the financial planning process consists of helping you determine your goals, develop a plan, and invest in a way that will meet those goals. Although investments are the primary focus of most financial planners, that is not the only service offered. Through the financial planning process, you will be able to tighten up your budgeting/cash flow, plan for major life events such as having children or purchasing a new home, and put yourself in a position to meet your retirement goals. A financial planner can take all of your information and talk with you about ways to meet those goals.

    • You’re not a “money or numbers person”.

     Not everyone understands finance or enjoys following the S&P 500 and that is perfectly fine! That’s what financial planners are here for. There is a reason that they chose the profession they did. Just as some people want help in managing their finances, a financial planner looks to a doctor for medical advice. Having someone else help manage your finances can allow you to spend more time doing what you love.

    • You have a handle on your finances, but need a non-emotional third party.

    There’s no question about it – investing and financial planning is emotional! Wouldn’t it be nice to have an unrelated party who has your best interest at heart available to you as a sounding board while you go through major life events? Want that shiny new car? Great, it can be helpful to get a neutral opinion from your financial planner. In addition, studies by DALBAR have consistently shown that the average equity investor receives a much lower return than what the actual equity market return was for the same time period. Why is that? Emotions. The individual investor often makes emotional decisions while investing that on average do not result in the best outcome.

    At this point of the article, you may have already decided that you want to speak with a financial planner. Then, thought number 60,001 comes into your head… “What do I even ask a planner when I have a conversation?”. This is another potential roadblock on the path to improve your financial life. Please see below for some helpful tips when talking with a prospective advisor.



    A financial relationship is based around trust and feeling comfortable with the other party. When you walk out of each meeting with a financial professional you want to have the feeling of confidence that they are putting you and your family’s needs first.

    There are benefits to receiving professional advice, but choosing someone to work with can be difficult and we understand that. Here at Confluence Financial Partners, you will receive professional advice that is customized for your financial goals.

    If you are interested in speaking with us in greater detail, please contact us at Gregory.Weimer@ConfluenceFP.com or Chuck.Ziants@ConfluenceFP.com

    [i] https://www.successconsciousness.com/blog/inner-peace/how-many-thoughts-does-your-mind-think-in-one-hour/

    Gregory Weimer
    About the Author

    Gregory developed a passion for the financial services industry early in life, drawn to the meaningful impact investing and thoughtful financial planning can have on people’s lives.

    McMurray

    724-271-8801
    gregory.weimer@confluencefp.com
    Email Greg

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    Gregory Weimer

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