Jason E. Archambault is a founder and managing member of SK Wealth Management and oversees the day-to-day operations of the Providence firm. He provides financial planning advice on estate, retirement, insurance, charitable, college planning and other financial issues. He assists clients in establishing well-diversified portfolios tailored to individual goals. He specializes in financial planning services for non-traditional couples and families.
He is a certified financial planner and has testified as an expert witness in that capacity. He is a CPA and has certification as a personal financial specialist.
Archambault has a bachelor’s degree in business administration from Bryant University.
PBN: What is the most common misunderstanding you have found that people have in choosing a financial planner?
ARCHAMBAULT: There are two common misunderstandings that people have in choosing a financial planner – understanding fees and services provided for those fees and understanding the credentials of the professionals they are working with. A financial planner can be fee-only, fee-based or commission only. In the fee-only situation, the planner charges the client a fee and receives no other compensation. This leads to an objective approach. A fee-based planner will charge a fee to the client and accept commissions from selling products, such as life insurance or investments. A commission-only planner charges no fees to the client, but receives commissions for selling products. It’s important for a client needs to understand a financial planner’s compensation model and feel comfortable with it.
There are many credentials in the financial planning and investment advisory industry. The CFP for certified financial planner is considered the gold standard. The CPA is also beneficial because a certified public account considers tax consequences in a financial plan. The CFA designates a chartered financial analyst and is a key designation when dealing with portfolios. These credentials assist clients in choosing
financial advisers and having confidence in them.
PBN: What are the guidelines for deciding which type of financial planner, or which type firm, will best suit a person’s needs?
ARCHAMBAULT: A person needs to start a financial planner search by trying to decide what type of firm they’d like to work with. Would they like to work with a larger financial firm, such as a brokerage house or a bank, or with an independent financial advisory firm? Prior screening of financial planners can include research on a company’s website or at the SEC website.
A registered investment advisor has a fiduciary duty to put their clients’ interests first – not every financial professional has this duty. When working with a registered investment advisor, a client can also expect to have advice from the financial planner that is tailored based on their goals, to know what they are paying for, to be able to find a planner that has advice that suits their complex needs and to experience a close relationship with accountability.
PBN: Who should be on a financial planning team? Does the client generally know who these specialists are that make up the team or have access to them if they are interested in specific aspects of their financial plan?
ARCHAMBAULT: A certified financial planner should lead the planning team. Other crucial members of the team are an estate attorney, a CPA, a chartered financial analyst and insurance professionals. By assembling this team and “quarterbacking,” a certified financial planner can provide a holistic, coordinated approach to a financial plan and make sure that a decision being considered by one member of the team positively affects other areas of the plan and fits in with the client’s goals and objectives.
PBN: How much of your client base comes to your firm for retirement planning? There have been recent studies that found many people are taking their social security too early, at 62, instead of waiting until their benefits increase. Have you found that to be an issue among your clients?
ARCHAMBAULT: We deal with retirement planning for almost every financial planning client. At a young age, the issues may simply be more around how much they can afford to put away in a retirement plan, how their employer plans contribute to their retirement savings and an appropriate investment allocation within their retirement plan. For clients closer to retirement, the planning process gets involved in cash flow models, income taxation and, of course, Social Security strategies. Especially for married couples, clients need to understand the choices allowed them and how to best maximize their own benefits given their individual situations. Sometimes taking Social Security benefits early is the best decision for a client, and sometimes it’s not. An individualized analysis, including the risks involved with each approach, is warranted for each situation.
PBN: Do clients in Rhode Island have any specific concerns or preferences when it comes to financial planning, compared to clients in other New England states in other parts of the U.S.?
ARCHAMBAULT: The basic concerns of cash flow, income taxes, estate planning, retirement planning, insurance analysis and investment planning are germane to almost all clients, no matter what their state of residency. Rhode Island clients are concerned with Rhode Island estate taxes and how that affects their financial legacy. They look for strategies to minimize or avoid these taxes, including, of course, moving out of state when they retire.
