FAQs
What is a fiduciary?
Clarity Financial and Heather Liston are fiduciaries. That means we are bound, both legally and morally, to act only in what we believe to be your best interest. To avoid any possible conflicts, we do not sell any products, take any commissions, or accept any referral fees. We are compensated solely by the fees you pay us.
For more information on what “fiduciary” means, here’s an Investopedia article.
This clip from “Last Week Tonight with John Oliver” also explains it pretty well.
What is an advice-only planner?
We are “advice-only” financial planners, which means we can advise you on many aspects of personal financial planning, including investments, but we do not implement trades or manage your investments for you. You always maintain complete control, and you have full discretion over which recommendations to implement.
By contrast, many financial advisors and planners work by transferring your assets to accounts that they manage for you. They make all investment decisions, buy and sell on your behalf, and keep a small percentage of your assets as their fee. In the professional lingo, they take “assets under management” and you pay an “AUM” fee. That is a common business model, and we know many good people who work that way, so if you’re having trouble finding an investment manager who meets your needs, just drop us a note and we can probably recommend one.
By contrast, though, Clarity Financial does not transfer your accounts, and we do not make trades on your behalf. We will advise you—as needed—on investments, retirement planning, education savings, tax planning, debt management, insurance, estate planning, and more, but the implementation is always in your hands.
That doesn’t mean you’re left entirely on your own though. If you would like help navigating a financial institution’s website, or talking to your broker or banker, we can join you in a call or an online session, with your permission. We just won’t do anything without you.
An advice-only planner, like Clarity Financial, is a good choice for someone who:
Likes to learn and understand as they go along, and wants to gain more insight about their financial situation rather than just turning it over to someone else
Is a do-it-yourselfer, and enjoys managing their own money, but still wants help and advice about certain issues
Would like to pay a one-time fee rather than incur ongoing charges indefinitely
Wants a comprehensive look at their entire financial situation, or wants help with just one or a few specific issues
Seeks a second opinion, or objective viewpoint, on certain financial decisions
How much does it cost?
The first chat is always free. To schedule a brief introductory meeting, click here.
See our Rate Sheet for 2024 here.
Should I roll over my old 401(k)?
That’s right—you’re not the only one who has this question. I made a chart that may help you think about it. Keep in mind that (of course) every situation is different. If you need help figuring out what’s right for YOU, let us know. Meanwhile, here’s the chart: CHART.
I keep hearing about Backdoor Roths. Is that something I should be doing?
Maybe. That’s a technique that lets high-income people get money into Roth IRAs, which can be valuable. It’s kind of easy to do this wrong, though, so it’s best to get help if you’re not 100% sure you know what you’re doing. Here’s some info on that, gained from hard experience. How Not to Mess Up your Backdoor Roth.
Should I buy or rent?
Naturally, there’s no simple answer. But this recent podcast, produced by the New York Times, might help you think about it.
And—good news—the Times has just updated their excellent rent-vs.-buy calculator! See that here, and try playing it with it to see what might work best for you.