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Asset Management

The information contained in this section has been filed with NASD as part of the state Registered Investment Advisor regulations as an Amendment to Form ADV.

Thomas Financial Planning Asset Management

James N. Thomas, CFP®
Thomas Financial Planning
5738 South Black Oak Lake Road
Land O' Lakes, WI 54540
715-547-3667

This brochure provides clients with information about James N. Thomas and the Thomas Financial Planning Asset Management Program that should be considered before becoming a client of the Thomas Financial Planning Asset Management Program. This information has not been approved or verified by any government authority.

Program Description

Ethics and Disclosure

Fee Schedule

Fees

Client Confidentiality Policy


Program Description

Any investment program must be built around you. Your dreams, goals and needs combined with your tolerance for risk are the basis for developing a successful asset management program. As a Certified Financial Planning designee, the heart of my program is a comprehensive financial planning process.
The financial planning process begins with a complete review of your financial position and defining your current and future financial needs. I then help you articulate you goals and develop a plan to achieve them. Only then do we start the process of developing an investment strategy.

Asset or wealth management is not a get-rich-quick strategy or a "hot tip" investment scheme. Instead, I team up with highly skilled professional investment managers to follow a time proven process to increase the probability that you will meet your financial objectives. As an independent investment advisor, I am not tied to any company or programs. This means I only select investments that are in your best interest.
The Asset Management Program is a four-step process based on your financial plan. First we develop an asset allocation policy based on your needs and goals. This policy maximizes your investment returns relative to your risk tolerance and time horizon.

Next, your asset allocation policy is implemented by investing in a well-diversified portfolio managed all or in part by institutional money management firms. Equity investments are balanced with other financial instruments and hard assets to meet your financial goals.

Your investment portfolio is carefully monitored on an ongoing basis to ensure that it remains consistent with your asset allocation policy. If the relative value of investments in your portfolio changes enough to become inconsistent with this policy, it is rebalanced.

The fourth step is to periodically review your financial plan to ensure that your asset allocation policy remains consistent with you financial goals. If your financial or life situation changes, we can make modifications to our investment strategy.

I will communicate regularly with your investment managers and provide a comprehensive reporting package including account performance reports and statements providing details of your account. I will combine reports received directly from each portfolio manager with a summary report with all your investments. The reporting period can be customized based on your wishes with quarterly being the preferred.

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Ethics and Disclosure

As a Certified Financial Planning designee, I am governed by the strict Code of Ethics of the Certified Financial Planning Board. The Code is available on request or can be viewed at www.CFPBoard.com and is summarized below:

Principle 1: A CFP practitioner shall provide professional services with integrity.

Principle 2: A CFP practitioner shall be objective in providing professional services.

Principle 3: A CFP practitioner shall provide services to clients competently and maintain the necessary knowledge and skill to continue to do so in those areas in which the designee is engaged.

Principle 4: A CFP practitioner shall perform professional services in a manner that is fair and reasonable and shall disclose conflicts of interest in providing such services.

Principle 5: A CFP practitioner shall not disclose any confidential client information unless in response to proper legal process.

Principle 6: A CFP practitioner's conduct in all matters shall reflect credit on the profession.

Principle 7: A CFP practitioner shall act diligently in providing professional services.

As a fee only financial planner and investment advisor I receive no commissions or compensation from any third party in connection with your investments. Therefore, I have no conflicts of interest and incentive for you to select one investment over another. I have different fees depending on the level of service I provide that are outlined in "Fee Schedule". There are no conflicts between the interests of Thomas Financial Planning and those of my clients as reported in Form ADV Part II.

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Fee Schedule

Thomas Financial Planning is a fee-only firm providing comprehensive financial planning. Investment advisory or asset management services are only one part of the financial planning process. Since no two clients are alike, I offer my services on an hourly, flat fee, or management (wrap fee) basis. This allows you to select only the services you need. Also, you may not want to sever relationships with brokers or money managers that currently handle your equity investments. I will work as part of a team if you feel this is in your best interest.

Our relationship is determined in two steps. First there is a no-charge meeting where we briefly review your financial position, investments and current financial needs. We discuss why you feel you may need financial planning advice. It also provides an opportunity to get to know each other and determine if we are compatible. From this information, I will propose the type of services I am able to provide that will be of value to you. I will also recommend the type of fee basis that would be the most beneficial for you.

Should I recommend an asset management program that would have a wrap fee, I will compare this fee to what you are currently paying for the level of services being provided separately in addition to the trading costs based on the activity in your account. The cost for an asset management program may be slightly higher, but the level of expertise and services provided may give you a higher probability of meeting your life goals. My objective with an asset management program is to provide a higher level of financial planning expertise and personal service.

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Fees
Asset Management based on assets under management
$150,000 to $500,000 .75 %
$500,001 and above .60 %
For very large accounts an appropriate fee would be developed based on the services to be provided
Financial planning services are included in the asset management fee unless otherwise stated

Planning services can be purchased separately at $95 per hour

In addition to my fees would be fees and expenses of portfolio managers, mutual fund expenses, trading costs, trust fees and other costs associated with investing and trading in financial instruments and other assets. Note that these additional costs will be disclosed or estimated prior to investing. I will try to minimize these expenses as part of the investment evaluation. The costs will vary for each client based on the investment strategy agreed upon. For example, trading frequency may vary based on a client's time horizon, investment style and investment products.

Various amounts of information must be given to third parties such as portfolio managers, mutual funds and asset management companies to be able to open an account, report to tax authorities and provide recommendations on investments. I will review their privacy statements to ensure that your personal information is keep confidential. Information required will be updated as pertinent changes occur and records will be reviewed on an annual basis. Below is the Thomas Financial Planning Confidentiality Policy.

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Client Confidentiality Policy

Client confidentiality is of paramount importance in the financial service industry. All client information shall be considered confidential in accordance with the provisions of the "Code of Ethics and Professional Responsibility" for CFP licensees.

All information about Thomas Financial Planning and its clients are considered to be confidential. Employees shall not disclose any confidential information at any time during or after employment with the firm.

Company files are available to employees in the course of their normal work on a "need to know" basis only. No employee shall permit any person whomever to examine or make copies of any reports or any other documents prepared by Thomas Financial Planning, its clients, or documents which come into an employee's possession by reason of employment with this firm. Any person associated with Thomas Financial Planning, who has a question regarding the propriety of using client information in any manner, other than for the benefit of the client, shall ask the Compliance Officer of Thomas Financial Planning for a determination of propriety.

Unauthorized use of client lists, client names, addresses, and/or phone numbers, both during employment and after termination of employment, is a potential criminal violation of the laws of the State of Wisconsin. The Company will prosecute any violations to the fullest extent of the law.
Upon termination of employment, an employee shall turn over to the President all documents, papers, memoranda, electronic media, and other matter in his or her possession or under his or her control, which may have, in any way, to do with the above-described confidential information.

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