Frequently Asked Questions

Important questions you should ask about Sterling Wealth Advisors (SWA):

1. What is SWA?
   Sterling Wealth Advisors is a personal-planning and tax-planning firm registered with the Florida Department of Banking and Finance as a registered investment advisor. The file number is 55224. Sterling Wealth Advisors works as needed on a contract basis with clients. It is the policy of our firm that all employees providing advice to clients hold either a college degree or the designation of CFP®, CPA, or equivalent.


2. What is a registered investment advisor?
   A registered investment advisor is a fiduciary who has a duty of undivided loyalty to its clients and must deal fairly and honestly with them. A registered investment advisor is a representative of the client.


3. How much does SWA charge?
   We are fee-only advisors, which means that we are compensated only by our clients. Visit our Fees and Minimums page.


4. What does SWA sell?
   Sound financial planning advice regarding taxes, investments, insurance, pensions, retirement, estate planning, and general matters.


5. Who does SWA serve?
   Individuals, corporations, and business entities.


6. Who can benefit from SWA?
   Anyone who has financial, tax, investment, or estate problems, or who wishes to plan prudently for his or her financial future. Furthermore, persons who desire a higher, more sophisticated level of financial planning services may find our program appealing.


7. How much money do I need to work with SWA?
   There is no minimum asset requirement. We recognize that persons with little or no assets can benefit from good financial advice. Typically our retainer clients have investable assets (not including real estate) of $500,000 or more.


8. What is a financial plan?
   A financial plan is an in-depth review of your financial situation, taking into account your goals and objectives and focusing on income tax planning, specific investment recommendations, estate planning, risk management, educational planning, and retirement planning. A financial plan analyzes and recommends ways that you can achieve your financial objectives.


9. Are the fees tax-deductible?
   Yes. Section 212 of the Internal Revenue Code permits an itemized deduction for tax and/or investment advice. It can be found in the miscellaneous section of Schedule A and is subject to a two percent floor of your adjusted gross income. Clients who own their own business, have a farm or rental property, or who buy and sell investments may also be able to deduct a portion of the fee on the corresponding schedule.


10. Does SWA sell financial planning products such as annuities, insurance, and tax shelters?
    No. We are fee-only planners and therefore do not sell any products. Products must be purchased by clients from other sources. We will suggest investments you can make without paying commissions and guide you in your purchases. We are listed financial advisors with Charles Schwab and Co., Inc., a discount broker. You may choose to set up accounts through Schwab or any other brokerage firm of your choice.


11. When I develop a financial planning program with SWA, am I obligated to purchase the recommended products?
    Often the products that we recommend to our clients are the same products we purchase for ourselves, but you are never obligated to purchase any recommended product.


12. Does SWA provide legal services?
    No. However, we can refer you to attorneys as needed.


13. For what type of securities does SWA provide advice?
    We provide advice for equities, corporate bonds, certificates of deposits, municipal securities, mutual funds, variable annuities, US government securities, real estate, option contracts on securities, and limited partnerships.


14. What method of analysis does SWA use to analyze investments?
    We do not use charting. We use technical analysis and fundamental approaches such as economic conditions, earnings, industry outlook, politics (as they relates to the investments), historical data, price-earning ratios, dividends, the general level of interest rates, company management, and tax benefits. Our main sources of information are financial newspapers and magazines, research materials prepared by others, and annual reports, prospectuses, and filings with the Securities and Exchange Commission.


15. Does SWA guarantee investment performance?
    No.


16. Will client information be kept confidential?
    Yes. It is the law.


17. Once a plan is completed, will my relationship with SWA end?
    It should not. Financial planning is a process, not an event. We provide annual, semi-annual, or quarterly analysis of your net worth to access diversification and review investments. Tax planning is done on a regular basis. We are also available as needed for financial advice upon your request.


18. Does SWA offer money management?
    Yes. But we reserve the right to select accounts. Assets may be managed by directed portfolios under a limited power of attorney with the client retaining custody of all funds.