The following are some frequently asked questions. If you have additional questions, please call 910.769.1569 or email Arlene Moss, our Member Resources Coordinator.
Financial
Q:
I’m just starting a practice. How much can I expect to make in the first few years using the ACP System?
A:
If you follow our recommendations, you should expect to break even your first year, make a profit your second year, and have a self-supporting practice at the end of three years. Your results will directly correlate with how closely you stick to the ACP System™ and how much time and energy you dedicate to building your practice.
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Q:
How much can I expect to spend in the first years if I’m starting a practice from scratch?
A:
We've analyzed the costs associated with starting a practice. Our cost comparison breaks down your various costs and highlights the significant savings when you implement ACP’s proven methods.
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Practice Management
Q:
What type of administrative support can I expect?
A:
ACP equips you with the tools you need to run your practice efficiently, including:
- Forms and spreadsheets - practice performance tracking, client contract templates, and fee calculation templates
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Business start up tools - information and guidance on identifying the right business structure, office location, equipment, software, and supplies
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Organization strategies - direction on setting up your client files, time management systems, and accounting systems
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Staffing issues - help with identifying staffing needs and training programs as well as resources for hiring virtual staff
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Network of support - conference calls, conference sessions, special-interest groups, and the ACP Intranet, which will help you learn from other members, avoid costly mistakes, and turbo-charge your progress
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Q:
What computer software do I need?
A:
Most ACP members purchase a client management system (ProTracker, Junxure, ACT, RedTail, and Business Contact Manager for Outlook are most popular), tax preparation software (Lacerte and Drake are most popular), tax planning software (Lacerte and Tax Tools are most popular), and some level of Morningstar for investment research.
Because we strongly recommend paperless offices, we suggest that all new members purchase Adobe Acrobat (the full version, not just the free reader) and some type of file manager (PaperPort is popular).
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Q:
Does ACP help me become an RIA?
A:
You are responsible for completing and submitting your Form ADV, but ACP provides a model ADV (written by compliance attorneys) that you can customize.
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Q:
Is there any other registration and compliance support I receive?
A:
Yes. Here are some of the other tools and support we provide:
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A list of questions you MUST ask your state regulators
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A wide sample of member ADVs to see how they have worded their responses
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Tips on staying in compliance with record-keeping requirements
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A discount on a compliance manual designed specifically for ACP member practices
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Information on what to expect during a compliance audit
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A list of recommended compliance experts
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Q:
What type of marketing support does ACP provide?
A:
Because marketing is critical to building a successful practice, ACP has developed a systematic program designed specifically for this type of practice. Some highlights include:
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Successful marketing manual - helps you create a marketing plan and explains how to use the tools in the ACP Marketing Tool Kit
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Marketing toolkit - provides three professionally designed packages for letterhead, business cards, a two-page "brochure," and more that can be customized for your practice
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Member website program - includes multi-page websites that are customizable for your practice along with participation in a drip email program, key word optimization, and monthly web stats
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Marketing coaching - gives tips from a professional marketing coach on learning how to craft your marketing message and inexpensively market your practice.
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Public relations support – ACP staff will promote your newsworthy events and accomplishments with an official press release
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Training
Q:
What type of training will I receive?
A:
The ACP Success Program, ACP’s comprehensive training program, is comprised of several different learning platforms that fully prepare members to implement the ACP System into their practices, including self-study, virtual classroom, group instruction, coaching and mentoring, and the Visiting Advisor Program. Learn more about the ACP Success Program.
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Q:
What type of ongoing support is provided once the initial training is complete?
A:
Members have access to a variety of sources of support including a mentor program, a Member Resources Coordinator, and other members via the Members-to-Member Discussion Forum. Webinars are held throughout the year on a variety of practice management, marketing, and continuing education topics. And, of course, our annual ACP Conference is a great opportunity to review and refresh existing skills while also acquiring new ones. For more details on the support you can expect, visit the Benefits of Membership page.
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Q:
Who does the training?
A:
Successful ACP members with proven teaching and training skills are your teachers during the Virtual Classroom sessions and the Live Group Instruction.
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About ACP
Q:
What ACP membership requirements must I meet before I can apply?
A:
- Complete all educational requirements for CFP® or CPA/PFS designation
- Abide by the NAPFA definition of “fee-only” for all new clients
- Abide by the ACP Pledge to Clients, Canon of Ethics, and Intellectual Property Policy
- All other membership requirements must be met within one to three years
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Q:
Is a tax background necessary to join ACP?
A:
No. However, we do require new members without a tax background to take a tax course prior to attending the group instruction. H&R Block, National Tax Training School, People’s Tax, and Quickfinder courses meet this requirement.
National Tax Training School – online course
Advisors should take the Federal Income Tax Course to meet ACP requirements
www.nattax.com
800-914-8138
People’s Income Tax – online course
Advisors should take the Comprehensive Income Tax Course (Basic Part I and Intermediate Part II) to meet ACP requirements
www.peoplestax.com
800-984-1040
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Working with Clients
Q:
Is it true that ACP members don’t write a financial plan?
A:
Yes. A basic tenet of the ACP System is that financial planning is a process, not an event. Our members build the "financial plan" one step at a time over a series of appointments with each client. Instead of one document, members prepare a series of recommendations dealing with every area of a client's financial life, and those accumulated recommendations, in conjunction with other projections and analysis, comprise the plan. Recommendations are written during the appointment, in front of the client.
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Q:
How is the annual retainer calculated?
A:
The retainer fee is based on each client’s income, net worth, and the complexity of that client's situation. ACP provides a fee-calculation template, with each member determining his or her own fee amounts to use in the template.
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Q:
Why do ACP members charge on a retainer basis instead of hourly?
A:
ACP members provide peace of mind to their clients, and the retainer fee is a component of that peace of mind. Clients like to know that when they have a question or circumstances change, they can contact their advisor at no additional fee. Clients are much less likely to make costly mistakes because they chose to go it alone instead of contacting their advisor.
For the advisor, charging an annual retainer creates a steady revenue stream. Once your initial client base is established, your marketing efforts can be focused on developing relationships with your personal networks, gatekeepers in your community, and your existing clients (who will be your best sales force) rather than creating a continuing stream of new clients critical to your cash flow and success. And the retainer fee model allows you to charge based on the value you create for your clients. The more value you can create, the higher the fees you can command.
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Q:
What about charging as a percentage of assets under management?
A:
Charging based on AUM is an easy-to-understand system, but it fails to address the complexities of true holistic financial planning. ACP members are not just investment advisors. They focus on their clients’ entire net worth and the financial factors and behaviors clients can control. Retainer pricing avoids the inherent conflicts of interest found in AUM (such as gifting strategies or paying off a mortgage). Retainer pricing also provides that steady revenue stream – client fees are not dependent on the performance of the stock market. As an ACP member, you are not prohibited from charging based on AUM, but the vast majority of our members find it an inferior alternative.
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