IFG Overview

1. A Registered Investment Advisor
Introduction
and
Overview of Services
James Lorenzen, CFP®, AIF®
Founding Principal
www.indfin.com
805.265.5416 — 800.257.6659
cfp@indfin.com
The Independent Financial Group is a fee-only financial planning practice and a registered investment advisor.
This presentation does not contain investment advice and we do not sell products of any description.
Pictures of people contained in this presentation, other than the advisor or his family, are merely stock
images obtained to add visual variety to the slides and should not be regarded as clients of the advisor.

2. Your Financial Advisor
Jim Lorenzen, CFP®, AIF®
CFP® AIF®
B.A. Economics – Emory & Henry College (Virginia) 1967.
Worked in commercial & consumer finance (1970-78). Rose to EVP of
Universal Guardian Corporation with offices throughout U.S. and Canada.
My offices were in Marina del Rey, Ca and Vancouver, B.C.
Founded Media Marketing, building an ad agency, direct mail company,
and published weekly newspapers in Ventura County, Ca. (1978-84).
International speaking and consulting on management and organizational
development (1984-2009). Headline speaker at more than 500
conventions and contributor to dozens of business publications. Clients
included Hearst Corp., CapCities/ABC, Foster Grant, Hobie Cat, The Los
Angeles Daily News, Cox Communications, Union Ice, NCR, and scores
of others.
Independent financial consulting (1992-present) serving a selected
national clientele. Published in The Journal of Compensation &
20 Benefits, The Profit Sharing Council of America’s Insights, numerous
Years! newspapers, and interviewed by The Wall Street Journal for
SmartMoney magazine and by American Airlines’ Sky Radio
heard on more than 19,000 AA flights.

3. My Financial Evolution and
THE INDEPENDENT FINANCIAL GROUP
1991 - Dean Witter
1992 - Formed as James Lorenzen & Associates
1996 - Name changed to THE INDEPENDENT FINANCIAL GROUP.
2003 – Became a registered investment advisor. Began CFP® and AIF® studies.
2004 - AIF®.
2006 – CFP®
2007 - Adopted a fee-only business model, dropping sales model and all securities
and insurance licenses.
2011 – Retained Retirement Plan Advisory Group (RPAG) to provide back-office
support for corporate retirement plan consulting. RPAG provides services to 350
firms in 45 states serving approximately 20,000 plans with $65 billion in assets.

4. Credentials
CERTIFIED FINANCIAL PLANNER® (CFP ®)
Candidates for CFP must meet requirements for work experience, education, and ethics.
Candidates must have a bachelor’s degree or higher from an accredited U.S. college or university
and also master a list of nearly 100 topics on integrated financial planning through a CFP Board-
Registered program.
Course study can take anywhere from 2-3 years, depending on scheduling. Today there are more
than 300 colleges and universities across America offering CFP Board-Registered programs in
their MBA curriculum. Upon graduation, candidates must pass a ten-hour exam, conducted over
two days. Board exams are scheduled twice each year at selected locations across the U.S. on
specified dates and must be taken at testing sites in person.
Accredited Investment Fiduciary® (AIF®)
Granted by The Center for Fiduciary Studies in association with the Joseph M. Katz Graduate
School of Business, University of Pittsburgh. This program addresses the needs of Registered
Investment Advisors who provide investment advisory services for trustees of estates,
endowments, foundations, and corporate retirement plan sponsors.

5. The IFG Credo
Every client deserves, and has the right to expect, an
objective and unbiased advisor who is fully aligned with the
client’s goals, possesses a moral compass with strict
standards of accountability, and who takes a straightforward,
common sense collaborative approach, putting the client in
control of a hassle-free process incorporating breakthrough
technology and unparalleled flexibility… with openness and
transparency.

6. IFG’s Goal
with EVERY Client
Extraordinary service with no surprises, no
excuses, and no worries, as well as
independent thinking and lasting solutions to
help clients achieve the security, stability,
predictability, and peace of mind they seek.

7. Typical Questions
How much money is enough?
How long will my money last?
How will inflation impact my planning?
How will market volatility affect me?
How can I minimize taxes?
What are the future implications of my
financial decisions?

8. Four pillars of investment success
It's not about
Managing risk
managing
is more
investments.
important than
It's about
reaching for
achieving
higher returns.
goals.
No one can
Monitor
control the
everything and
markets or
revise as
interest rates,
necessary,
but you can
keeping your
control taxes
plan current.
and costs.

9. Is ANYONE Really On Your Side?
Are the service providers ‘related’?
• The investment manager
Is there `soft-dollar‘ or other hidden • The asset custodian
compensation ? • The reporting entity
• Your financial advisor
Sometimes fees can be ‘bundled’ to
mask WHO is getting paid WHAT.

10. Comparing Sources of Help
Standards Differ
Suitability (sales) Standard- Investments need only be
suitable to the client’s situation. Higher costs okay if investment
is suitable.
Fiduciary Standard – Decisions MUST be in the clients’ BEST
INTEREST. Higher cost not okay if lower cost alternative
available. Legal standard for Registered Investment Advisors

11. Questions
Your Advisor
Should Answer.
1. Are you held to a fiduciary standard in all dealings with me
and my financial affairs? Will you acknowledge that status in
writing? What fiduciary training have you completed?
Not everyone is. Some firms are `dually registered’ and may
try to avoid this by adopting the fiduciary standard for
planning, but not for investment selection. If they’re adopting
a ‘suitability’ standard for investment selection, then conflicts
can arise.
Disclosing conflicts doesn’t make them right. Avoiding them
does.

12. Questions
Your Advisor
Should Answer.
2. Do you disclose all conflicts of interest, both actual
and potential, that exist or might exist in my
relationship with you?
It’s better to AVOID conflicts, rather than merely disclose.
Mere disclosure doesn’t make them right.
This consultant does not accept ANY 3rd party compensation
of any description. IFG compensation comes solely from IFG
clients - and compensation is the same regardless of the
plan, management, or investments selected.

13. Questions
Your Advisor
Should Answer.
3. Do you forego any type of commission-based
compensation in favor of receiving all compensation via
fees that are fully disclosed in dollar terms?
IFG best practices: There is no hidden compensation.
Clients receive a complete breakdown for each service: Who
is getting paid how much and for what services. No secrets.

14. Questions
Your Advisor
Should Answer.
4. Do you provide full service, comprehensive financial
planning services as well as investment advisory services?
Many advisors do. Again, ask if they wear their fiduciary hat for
planning; but take it off when it comes to investment selection. This
could be a ‘red flag’ regarding conflicts. Also, you might beware of
someone who claims to be an expert in all areas of financial planning,
regardless of the credential.
IFG answer: As a CFP®, your advisor facilitates a comprehensive financial
planning process in cooperation with your other specialist advisors (CPA,
attorney, etc.). IFG does not pay or receive compensation for referrals.

15. Questions
Your Advisor
Should Answer.
5. If you provide full service, comprehensive financial planning
services, are these services performed by individuals who
have obtained the CERTIFIED FINANCIAL PLANNER® (CFP®)
certification?
IFG Answers: Yes.
There are about 300 colleges and universities across America offering a
Board Registered curriculum in their MBA programs. The curriculum can
take anywhere from 2-3 years to complete, depending on scheduling. Upon
passing all courses in the curriculum, the candidate is eligible to sit for the
10-hour, 2-day exam given in designated locations across the U.S. on
specific dates each year.

16. Red-
Red-Flag Issues
Worth Questioning:
Fiduciary Status for Planning Only; not for investment
selection.
Unwilling to sign a document accepting fiduciary status for all
decisions on your account(s).
Chosen investment managers work for the same firm as your
advisor.
Investment managers work for the same firm that provides
reporting/custody.
“Fee-Based” rather than fee ONLY.

18. What’s In A Name?

19. A Seamless Solution
Independent Plan
Recognized investment manager(s)
Independent Custody
Independent Reporting
Online Convenience
You can even work with me from the
comfort of your home – by phone and
online!
IFG currently has clients in New York,
Florida, Colorado, and California.

20. Business Communication Today
• shopping
• banking
• paying bills
• planning vacations
• booking travel
Banks, government agencies, and
thousands of organizations do
business online every day! IFG
has clients in New York, Florida,
and Colorado, as well as in
Internet Transactions are California.
Commonplace!
If your local bank offers online Have you used an ATM? You
banking or bill-paying, your received cash from the machine
accounts are internet accessible in front of you; but the transaction
now! You just may not be taking linking your account was handled
advantage of it! over the internet!

21. The Planning Process
1. Foundation & Vision
Where you are
Where you want to be
When you want to get there
How you envision the journey

22. The Planning Process
2. Situation/Needs Analysis –
This is a combination of assembling data, a review
of your current risk profile.

23. The Planning Process
3. Data Review and Preliminary Action
Plan
A plan outline and approach is developed for our
discussion.

24. The Planning Process
4. An Investment Policy Statement (IPS) is
developed for our discussion.

25. The Planning Process
5. Screening and selection of investment and
management alternatives is conducted consistent
with your risk profile and the agreed-upon strategy
in your IPS created in step 4.

26. The Planning Process
6. A Working Action Plan is developed, incorporating
the selected investments and managers,
consistent with your profile, our analysis and your
strategy outlined in the IPS.

27. Our INDEPENDENT PROCESS
Making The Pieces Fit
Independent
Planning & Selection
Independent 3rd Your Investment Independent
Party Reporting Policy Statement Management
Independent
Custodian

28. YOUR
INDEPENDENT FINANCIAL GROUP
IFG Client
The Advisor
3rd Party Mgrs Due-Diligence Client Back Office
Custodian
& Funds & Research Reporting Administration

29. Management Value Reveals Itself on the Downside
Despite a 20% underperformance in the `up’ years, better ‘downside’ protection can result in
superior returns. This purely hypothetical example illustrates how important attention to the
downside can be, especially in turbulent markets.
INCREASING PERFORMANCE BY MANAGING RISK
“Beating the Market” may not be necessary if you can limit. downside risk
Amount Invested: $100,000 Up Cap> 80%
Dn Cap> 70%
Market Portfolio A Portfolio Portfolio Return
Year Return (Market) B Return B Difference
1 20% $120,000 16% $116,000 -$4,000
2 -20% $96,000 -14% $99,760 $3,760
3 20% $115,200 16% $115,722 $522
4 -20% $92,160 -14% $99,521 $7,361
5 20% $110,592 16% $115,444 $4,852
6 -20% $88,474 -14% $99,282 $10,808
7 20% $106,168 16% $115,167 $8,998
8 20% $127,402 16% $133,593 $6,192
9 -20% $101,922 -14% $114,890 $12,969
10 20% $122,306 16% $133,273 $10,967
2.12% 2.91% $10,967
Information presented in this example is purely hypothetical , provided to illustrate a mathematical concept,
and not meant to represent any investment return or outcome and should not be construed as investment
advice which is provided only to IFG clients on an individual basis and only upon completion of a written plan.

30. Your Plan: Your “Rock” in the Storm
During fair weather, no one worries. When the storms begin to rage – when
there’s chaos all around you - that’s when you look for the one thing that
doesn’t move to find your way because that fixed point helps you reach your
ultimate destination.
Your plan is your guiding light…. Your blueprint… your Constitution.

31. Your Plan Belongs to You!
Powered by PIE Technologies, this state-of-the-art
planning platform was voted #1 for the third year in a row
in Financial Planning magazine’s annual survey of
advisors across the U.S. The survey included advisors
in independent boutiques, regional, and major national
firms.
Secure Online Access 24/7/365
Full access to update, conduct ‘what-if’ scenarios and
experiment with assumptions.
Print it out or Download to your own computer!
Data on investment pricing, interest rates, inflation assumptions, market volatility,
even college costs, are continually updated dynamically, helping keep your plan
current at all times!

32. After The Plan…
Implementation is as Easy as 1-2-3.
1-
Adopting a custodian –
Best practices: Your custodian should be independent
of your advisor and the managers.
Most IFG clients use Pershing Securities, owned by
Bank of New York-Mellon (BNY was founded by
Alexander Hamilton).
The asset-transfer process is handled directly
between your institution and Pershing. I will provide
the paperwork you need and guide you through the
process.
Pershing will handle the transfer for you.
1 Your investment assets will be in your account(s)
in your name. IFG never takes custody and never
has access to your assets.
IFG is completely independent of Pershing, Bank of
New York-Mellon, and all other service providers.
IFG receives NO compensation from any third-
party service provider, directly or indirectly.

33. The Implementation Process
Step 2 is actually part of Step #1.
When Pershing receives custody of
assets, the investment options,
2 models, or managers you’ve chosen
are automatically assigned.
Note: All active managers and/or investment
options are independent of IFG and
Pershing.
All institutional managers and other service
providers work for fully-disclosed fees only –
no sales charges, no commissions, and no
surrender charges.
Active managers go through TWO
independent levels of due-diligence and
ongoing oversight and review.

34. Types of Investments
Typical Portfolios Include*:
• Stocks (U.S. and International)
• Bonds (Treasury, municipal, corporate bonds)
------------------------------------------
• Exchange-Traded Funds (ETFs)
• No-Load Index Funds
* Your individual portfolio composition and allocation will depend upon the results
of our collaborative planning process.

35. The Implementation Process
Step 3 is Orientation! It’s easier than you think!
You will have 24/7/365 access to sophisticated independent
reporting for all managers on all holdings, activity, performance
and tax issues. You’ll also have 24/7/365 access to a robust
planning platform powered by PIE Technologies.
3

36. After Investments are In-Place
In-
You will receive quarterly market updates,
commentaries, and ongoing management oversight
from two independent sources:
- You will have 24/7/365 access to objective 3rd party
reporting independent from IFG and the managers
they cover.
And, of course, your own private client advisor:
- THE INDEPENDENT FINANCIAL GROUP
Jim Lorenzen, CFP ®, AIF®
Plus:
Jim is available email or phone!
Call 805.265.5416, Ext. 1

37. Fee Structure
Financial planning and investment advisory fees are
earned separately and charged as outlined below.
IFG does not receive commissions or third party
incentives of any description, directly or indirectly.
1. The Initial Planning Process
Planning fees can vary depending on the nature and scope of the plan. Basic
investment planning covers the six-step planning process, including data-
collection , risk assessment, goal-setting, asset allocation, investment and
management screening, search and selection, plan implementation, and set-
up orientation. Advanced Wealth Management planning include insurance,
tax, estate, and other planning as appropriate.
2. Investment Advisory Fees
This is an asset-based annual fee deducted on a quarterly schedule by the
custodian on a fully-disclosed basis. IFG’s advisory fee covers
investment/management oversight , ongoing plan and investment reviews,
plan updates, and client communications including the IFG Clients Only e-
letter. Advisory fees begin at 0.95% on the first $500,000 with the percentage
declining as assets increase. IFG’s ADV form is available upon request.

38. Review:
Four pillars of investment success
It's not about
Managing risk
managing
is more
investments.
important than
It's about
reaching for
achieving
higher returns.
goals.
No one can
Monitor
control the
everything and
markets or
revise as
interest rates,
necessary,
but you can
keeping your
control taxes
plan current.
and costs.

39. A Registered Investment Advisor
Doing it the right way.
• No product sales or commissions
• Cost control
Jim Lorenzen, CFP®, AIF® • Conflict-free
Founding Principal • Fiduciary status
• Qualified & credentialed
www.indfin.com • Experienced
805.265.5416 — 800.257.6659
cfp@indfin.com
The Independent Financial Group is a fee-only financial planning practice and a registered investment
advisor. This presentation does not contain investment advice and we do not sell products of any
description. Pictures of people contained in this presentation, other than the advisor or his family, are
merely stock images obtained to add visual variety to the slides and should not be regarded as clients
of the advisor.