FAQs
Questions to ask when hiring a financial advisor.
We understand that hiring a financial advisor requires careful consideration. To offer transparency about our firm and help our clients be as informed as possible, we’ve developed a comprehensive list of important questions—and our own answers—to ask any potential financial firm.
Firm Structure & Objectivity
A: HFM is a Registered Investment Advisor (RIA), independently owned and not affiliated with a brokerage firm or insurance company. HFM is not a subsidiary, parent, or affiliate of any other company.
A: HFM is “fee-only,” and charges those fees based on assets under management (AUM). Our fees come from our clients and not from commissions, or outside vendors or companies. In the financial context, in a “fee-only” model, the advisor’s only compensation comes from client advisory fees, not commissions or investment trailer fees. “Fee-based” often refers to a hybrid model where an advisor charges a fee for advice but can also earn commissions from selling products, which creates a potential conflict of interest when selecting investments for the client. “Commission-based” is when the advisor receives revenue on the purchases and sales transactions of the investment products themselves.
A: No. As a fiduciary RIA, HFM does not receive commissions or revenue sharing in any sales of products. Revenue comes solely from client-based fees, which cover investment management, planning, and related services.
A: HFM adheres to a fiduciary standard, discloses conflicts in public regulatory documents, and is legally obligated to act in the client’s best interest.
A: Yes. HFM is a fiduciary. As such, the firm and its advisors are held to a legal and ethical standard requiring us to place our client’s interests before the firm’s and our own.
A: Yes. These are available on this website (visit Disclosures page). You can also look at https://adviserinfo.sec.gov, where you would select the “Firm” lookup tab and type in: HFM Wealth Management.
People & Professional Qualifications
A: HFM follows a team-based approach, offering continuity, broader expertise, and better client service from not one but multiple advisors.
Investment Philosophy & Process
A: HFM uses a diversified mix of investment vehicles tailored to your financial goals, including equities/stocks, ETFs (exchange-traded funds), mutual funds, and a range of others based on your plan.
A: HFM focuses on customization, diversification, objectivity, tax efficiency, cost management, and risk mitigation. Each investment is chosen to serve a specific role in your portfolio—promoting growth, income, and risk control as appropriate.
A: HFM blends both approaches depending on the client’s objectives. Emphasis is on efficient and prudent strategies with low-cost investments as appropriate.
A: Portfolios are monitored and evaluated relative to client goals, risk tolerance, and appropriate benchmarks.
A: Rebalancing is handled as needed to maintain alignment with your plan and risk profile.
A: HFM integrates your tax picture into investment decisions to minimize tax liability and improve after-tax returns.
Costs, Transparency, & Custody
A: Fees are based on a percentage of AUM (assets under management) and the percentage decreases as asset levels increase. Discussed more completely in HFM’s Form ADV document, clients may incur other fees charged by third parties, including custodian fees, mutual fund expenses or trailer fees, and bank fees. Third parties charge brokerage and other transaction costs, but none of these fees are paid to HFM or its employees.
A: Yes, some underlying investment products may have embedded fees (e.g., mutual funds or ETFs), but HFM avoids using high-cost, high-expense, commission-based products.
A: No. HFM is a fee-only RIA (registered investment advisor) and does not accept commissions or revenue sharing.
A: No. As a fiduciary, HFM avoids costly fund share classes that involve sales loads or trailing commissions.
A: HFM provides quarterly reports, is SEC-regulated (Securities and Exchange Commission), files public disclosure documents, and encourages direct communication with clients. We provide full access to records, annual reviews, and regular updates. SEC registration does not carry any official endorsement or indication that the advisor has attained a level of skill or ability.
Financial Planning Approach
A: Based on the asset level being managed, financial planning may be included in the fee.
A: We begin financial planning with a free introductory meeting, where advisors learn about your goals, concerns, and financial history. From there, we custom-tailor a financial plan to your needs.
A: HFM advisors specialize in retirement planning, tax planning, college planning, estate planning, income enhancement, and investment evaluation.
A: HFM is fee-only for the work we do for our clients, and is a fiduciary—we are not compensated for referrals.