1. The HFG Process
As a wealth management firm, Haberling Financial Group (HFG) delivers a specialized service to a select group of
clients that goes beyond what you would expect from commission based investment providers. This stems from a core
difference between our planning-based advisory practice and the product-based practices of brokers. Advisory clients
of HFG receive financial planning integrated with portfolio management. Our investment philosophy is referred in
our industry as “Evidenced Based”. This simply means that our views and assumptions arrive from the evaluation of
fundamental financial metrics. Owning assets that provide a value proposition is the core of our investment philoso-
Client’s are not often provided the opportunity to look under the hood of the car. In fact, historically the industry
standard has been notorious for their lack of transparency, whether it be fees or services. At HFG, we love what we do,
and look forward to the opportunity to share our planning and investment processes with you.
Our analysis of each individual client and circumstance includes:
Prospective clients or existing clients with unique or complex planning issues are discussed in our weekly Advisor
Forum. There, our analysis and forthcoming recommendations are vetted through peer review. We collaborate as an
advisory team to provide the planning advice and investment strategies we feel are most suited to your specific needs.
At this stage, our advisors implement the appropriate investment strategy for new clients or make any needed
adjustments for existing clients. Our investment strategies are specific and team-developed. We subscribe to the
concept of risk management through carefully selected asset allocation. Each portfolio is managed and supervised
under the “Evidenced Based” model. We target asset classes that offer a value proposition.
Each client portfolio is constructed using investments selected from HFG’s approved investment list. These invest-
ments are monitored and evaluated as part of a weekly Investment Committee review. Each approved investment
serves a specific purpose in the construction of an efficient portfolio. Being an independent advisory firm, we
conduct our research and investment selection in-house and add or remove investments from our approved list
according to our own evaluation and judgment. In order to perform this function with skill, our advisors commit to
career-long study and research in the fields of economics, investment valuation, and portfolio management.
Allocation And Performance Review
Each calendar quarter we conduct an examination of all advisory client portfolios. In the first phase of this 90-day
review cycle, portfolio performance is evaluated against benchmarks representing a similar overall risk-strategy.
Portfolios deviating significantly from their benchmark are reviewed further to determine cause and corrective
action is taken where appropriate. Secondly, all advisory portfolios undergo a review of their asset allocation weight-
ings. Over time portfolios naturally deviate from their allocation targets as the component investments expand and
contract in different ways. When any asset class shrinks or expands outside its target weighting, the portfolio is
rebalanced. This process can sometimes be confusing to investors because it often entails selling some of an invest-
ment which has recently gone up in value and buying more of one that has not. In fact this process of portfolio
rebalancing can increase returns over time because it is a systemized method of buying low and selling high.
2. HFG employs what we feel are the most qualified team of financial advisors in the region. It is our long-standing policy
that all HFG advisors hold either finance, accounting or economic degrees. We also require our advisors to progress
toward achievement of the Certified Financial Planner™ professional designation. This requires approximately 2,000
hours of coursework covering financial planning, investments, insurance, tax planning, retirement, employee benefits,
and estate planning. Candidates must then pass a 10 hour board examination. Once certified, practitioners are required
to complete continuing education requirements and adhere to a professional code of ethics.
The world is in a constant state of change. We feel that to remain effective and competent at our craft, constant study and
self improvement is required. We embrace a culture of being life-long students of our profession.
What Qualifies Us To Do These Things?
This series of events is a never-ending cycle of examination,
action, and performance evaluation. In these turbulent times it
is important to have an advisor who takes the time to under-
stand your needs and who provides ongoing oversight. We
believe that effective wealth management goes much deeper
than a one-time event of simply recommending an investment
or choosing an allocation.
Our team of experienced professionals draws upon more
than 70 years of combined experience to help you
formulate, manage, and achieve your financial goals,
while giving you the peace of mind and the freedom to
focus on what is truly important in your life.
Becoming A Client
GET TO KNOW
goals, and get
to know family.
analysis of current
and begin work on
have agreed to
proceed with the
toward goals on a
WEALTH MANAGEMENT PLAN
CLIENT AGREEMENT &
INVESTMENT POLICY STATEMENT
3. Retirement Planning (Capital Adequacy Analysis)
This is an analysis that compares your current and future resources to your expected needs.
By utilizing a present value analysis, each advisor will customize a report to illustrate your
“On Track” status based on the established retirement goals and objectives. If you have capital
surplus, you are considered “On Track” and if you have a deficit, we re-examine the options
available. The goal of this process is to be prepared and also provide clarity.
In 2004, we introduced a Family Office Service for High Net Worth clients that includes but is
not limited to, tax, estate and insurance Planning. When clients think of financial advisors,
they typically think of a investment broker that provides product based services. At HFG, our
service is holistic. We are certainly mindful of portfolio performance and capital growth, but
also believe that the Non-Investment issues are equally critical to the preservation and
transfer of wealth. We assist our clients to ensure all loose ends are tied up.
Our approach has been called by some industry observers as “Evidence Based” investing.
This means that our views and assumptions arrive from the evaluation of prices as they relate
to fundamental financial metrics. It is essential that we understand the past in order to
quantify the future. In fact, thinking about value is at the root of our investment philosophy.
Our approach is driven by one ultimate goal: building and preserving your wealth. We
achieve this by understanding the complex balance between risk and reward.
STAGE 1: GETTING TO KNOW ONE ANOTHER
We begin our journey with a detailed discovery process. Our advisors meet with you to under-
stand what your priorities are and examine how we can be of service. This is the foundation of the
relationship between advisor and client because it is the first opportunity to get to know the person
sitting in front of you. This first step is critical because it is used to explain philosophies and set
expectations. By going through this phase genuinely, the likelihood of building a long term and
sustainable relationship is enhanced. We are looking for long term relationships.
STAGE 2: GATHERING DATA
The second phase is to gather important information both personal and financial. The objective of
this meeting is for the advisor to familiarize themselves with the client’s financial health. This will
include, but is not exclusive to, completing a balance sheet, collecting tax returns, W-2’s, copy of
wills and insurance policies. We do not sell insurance or draft wills, but as part of our service, we
assist our client’s with proper planning and the search for a qualified professional if necessary.
Finally, we establish retirement goals and objectives. It is critical during this phase that the advisor
and client is detailed. The Financial Plan can only be as reliable as the data provided.
STAGE 3: FINANCIAL PLAN
HFG employs what we feel are the most qualified team of financial advisors in the region. This is
the advisors opportunity to present the firms proposed planning and investment strategies. We
understand that each client has unique and complex planning issues, so almost all plans are
discussed and reviewed during our weekly Advisor Forum. This allows our clients to benefit from
the expertise and viewpoint of the entire advisory team. There, our analysis and forthcoming
recommendations are vetted through peer review. We collaborate to provide the very best recom-
mendation suited to your specific needs.
The Financial Plan consists of the following categories:
4. STAGE 5: CLIENT ANNUAL REVIEW
For existing clients, our advisors meet with you annually to review your objectives, evaluate
progress, and determine best course of action. It is especially important to have a review with your
advisor anytime there is a significant change in your circumstances or personal goals. Your regular
client review meetings include what we call “On-Track” analysis - a quantified examination of your
financial health and we review your Portfolio Allocation. The many complexities of financial
planning can leave a person wondering if they are making adequate progress. Our “On-Track”
review aims to provide you with answers to questions such as, “How much income can this
portfolio provide if I retire a few years early?” or “Will there be enough for my spouse if I were to
pass away prematurely?” Our company motto is Simplifying Life and it begins with helping you
find answers to the tough questions. Our process is one that follows a repeating cycle of planning,
implementation, and evaluation. The objective is to be proactive with change and not reactive.
STAGE 4: IMPLEMENTATION
Once a financial plan is constructed and reviewed, we move forward with implementation. This
process involves establishing new accounts and transferring assets. We go through the practice of
crafting beneficiary language and correctly titling accounts based upon your estate vision . Once
transfers have settled, the portfolio will be managed on a discretionary basis governed by an
Investment Policy Statement.
Haberling Financial Group (HFG) is a financial services corporation specializing in investment
management and financial planning. HFG has been providing quality wealth management services
since 1983, and currently manages over $285 million in assets for 600 families and retirement plans.
1141 North Edison Suite A • Kennewick, WA • 99336 • (509) 735-7507