FINANCIAL ADVISER QUESTIONNAIRE

FINANCIAL ADVISER QUESTIONNAIRE: (Gary Karz, CFA) "The following is a collection of questions you may want to use in evaluating advisors and their organizations. You can choose any that you feel are relevant to your needs (or you can ask all of them if you're looking for weaknesses or trying to get rid of an advisor that will not leave you alone)." At the end of each of his questions, I have put my answers.

Are you registered with a state agency and/or the SEC?

Yes- California Department of Corporations, SEC, California Department of Insurance, California Department of Real Estate

Are you a member of the NASD and/or NYSE?

As RIA, not required.

What degrees, licenses, certificates and registrations do you have?

BSCE, LLB, MBA, PhD (Real Estate)

Masters of Science in Financial Planning (Estate Planning major, 1991)

Life and Disability Insurance Analyst, 1998

Certified Financial Planner

California Real Estate Broker

California B-1 General Contractor

Series 7, 24, 27 and 63 Securities Licenses- inactivated

Series 65 Securities License (Multi State Adviser)

California Life and Disability License

Certificate as instructor for California private post secondary educational institutions.

What services do you provide?

Comprehensive financial planning- mostly fee

What kind of clients do you serve?

Mostly middle income and totally non discretionary accounts. Clients must stay fully involved in all activities.

How long have you been in the business?

Involved in investments for 25 years- involved in financial planning for 18 years.

How would you summarize your philosophy of money management?

Reasonably conservative with focus on basic economic risk and reward of diversified portfolios. NO INDIVIDUAL STOCK PICKING

What types of investments do you recommend?

Almost diversified portfolios exclusively.

What is your area of expertise?

Extensive- see WEB site for verification of knowledge and competency.

What separates you from others in the field?

More background and intensive study than any other planner probably in the industry.

Why are you qualified to advise me?

See WEB site

How do you keep up to date in the field?

Extensive reading of innumerable articles

How does your past investment performance rank against your benchmarks and peers?

See returns on the Vanguard S&P 500 and Vanguard PrimeCap- they reflect a good portion of equity portfolios. Since almost all investments are mutual funds, a list can easily indicate how well they and others have done. However, the allocation is not as apparent.

What references can you give?

Professional references but I do NOT like to give out client references. I hold all clients matters as personal and private- even their Names. They are nobody's business except mine.

Is your performance record verified by independent sources?

No.

Is your performance record in compliance with AIMR Performance Presentation Standards?

Yes

What process will you use to help me with my investments?

I do analysis and provide written documentation of all research. Client must make final decision and that usually entails additional conversations.

How are you compensated and how are fees calculated?

Primarily fee only though some offset may occur with insurance products. Fees are defined per contract on the anticipated time involved, complexity and assets under review.

Do you have a minimum account fee or minimum investment?

Normally $4,000

What do I receive for that fee?

Advice on all financial matters as delineated by contract

Who will have direct access to my assets?

No one- No discretionary accounts

Who will review my financial affairs with me? Who will provide an individual financial plan?

Me

How often do you communicate with your clients?

At least monthly

How often will the portfolio be reviewed?

Quarterly review- less formal on daily, weekly and monthly

NOTE: This questionnaire was developed with a focus toward investments. Clients should ask even more comprehensive questions if needing a financial planner who will incorporate additional areas. And everyone should read my  Who Can You Trust

Further information is provided to perspective clients in my material as a Registered Investment Adviser sent separately. Major focus in on California residents.