Firm Description
Quantum Financial Planning Services Inc. (“Quantum,” “us,” or “we”) is an SEC-
registered investment adviser founded in 1979. Quantum is owned by C. Eric
Christiansen, Micah Coski, and Jordan Curnutt.
We are a fee-only, comprehensive financial planning and investment advisory firm.
We provide personalized confidential financial planning and investment
management to individuals, pension and profit-sharing plans, trusts, estates,
charitable organizations and small businesses. Advice is provided through
consultation with the client and may include: determination of financial objectives,
identification of financial problems, cash flow management, tax planning,
insurance review, investment management, education funding, retirement
planning and estate planning.
OUR MISSION
Quantum was founded with the purpose of providing assistance in the planning of
a client's overall financial affairs. Quantum practices independent comprehensive
financial planning, which includes two major components: financial planning,
including initial planning and ongoing review of financial planning goals and
objectives (Asset Management Services), and the design and monitoring of
investment portfolios.
Our goal is to staff Quantum with a team of professionals qualified to assist our
clients in achieving their financial objectives. We work with the client and his or
her other trusted professionals, providing financial planning consultation and
overall coordination on a personal basis.
Quantum offers investments advisory services through its Investment Advisory
and Financial Planning Agreement. Our advice is tailored to your individual needs
and goals. Through our financial planning software, you have access to view or
receive reports. Periodic reviews are also communicated to provide reminders of
the specific courses of action that need to be taken.
The initial meeting we have with prospective clients, which may be by telephone,
is free of charge and is considered an exploratory interview to determine the extent
to which financial planning and investment management may be beneficial to the
client.
Other professionals (e.g., lawyers, accountants, insurance agents, etc.) are
engaged directly by the client on an as-needed basis. When we recommend
another professional to a client, we do not receive any direct or indirect
compensation from that referral. To further avoid conflicts of interest, we do not
recommend clients to related persons of our planners where such referral could
lead to a commission for that related person. Although we do not expect there to
be other conflicts of interest relating to recommendations and/or use of other
professionals, such conflicts will be disclosed to the client at the time of
engagement whenever applicable.
Types of Advisory Services
INITIAL OR ONE-TIME FINANCIAL PLANNING SERVICES
We typically begin a new client relationship with comprehensive financial planning
services, which focus on the client's personal goals such as funding children's
college education, achieving financial independence, and providing adequate
funds for dependents in the event of premature death. Typical client concerns are
listed on the schedule titled Financial Planning Services attached to the Client
Agreement.
Our goal is to determine the optimum course of action for the realization of client
financial planning objectives, taking into consideration client needs, earning power,
financial resources and particular aversion to risk.
Clients are provided with personalized written and oral financial planning advice
designed to help them to identify, prioritize and achieve their financial goals. Such
advice normally involves the development of specific strategies, alternatives and
integrated solutions.
At the client’s request we will offer limited scope financial planning services. For
example, research on investments brought to us by the client and with which we
are unfamiliar would fall into this category. The scope of one-time, miscellaneous
financial planning services will be detailed in the Financial Planning Services
schedule attached to the Client Agreement.
FINANCIAL PLANNING ADVISORY SERVICES
Financial planning advisory services involve reviewing the client's financial affairs,
creating a financial plan, aiding the client in implementing agreed upon
recommendations, including asset allocation, providing ongoing monitoring of
goals and objectives, and making adjustments as circumstances change.
The process begins with an initial consultation offered at no charge. The purpose
is to determine if the client can benefit from financial planning and to what extent
our services are needed. Before we charge our fee, the scope of the work and the
fee are agreed upon and the Client Agreement with the Financial Planning
Services schedule is executed.
Financial planning requires a clear understanding of the client's current situation.
Areas of examination include assets, liabilities, income, expenses, potential
income taxes and estate taxes, trust agreements, wills, investments, insurance,
personal and family obligations, employee benefit programs and careful
consideration of investment vehicles. The client is expected to provide complete
information in all relevant areas. Quantum maintains stringent client and data
privacy policies and we will keep all of your information and the recommendations
furnished to you in confidence.
The various areas of client concern and recommendations are discussed orally
and in writing in a series of meetings with the client. Upon agreement of specific
recommendations an approved course of action is implemented.
INITIAL ASSET ALLOCATION
This service is designed for those clients having no need or desire for financial
planning, but who desire investment planning services. These may include
pension plans, children's trust, or clients who desire to monitor their own
investments after the initial allocation is made. Quantum analyzes the client's
current investments and makes recommendations regarding the retention,
purchase, or sale of investments.
As much as possible, we attempt to move the
client's portfolio toward the asset allocation mix of our current model appropriate
for the goals and risk aversion of the particular client.
ONGOING FINANCIAL PLANNING SERVICE
We have identified specific needs present with high producing real estate
professionals and have designed a comprehensive financial planning program
tailored to these individuals. We believe such professionals have unique
circumstances that don’t impact most other professionals, or don’t impact them in
the same manner. We tailor this service to the client’s specific scenario, and
typically provide the following:
Financial goal setting
Analysis and recommendations of cash management solutions
Evaluation of current investments, concentrations in one asset class, and
overall net worth
Tax planning considerations
Modeling of rental income
Coordination with your other professionals, as needed
This is an ongoing monthly service for a flat monthly fee. We provide this service
only after completing our initial financial planning services for a flat fee. See Item
5 of this brochure for fee information.
ASSET MANAGEMENT AND ONGOING FINANCIAL PLANNING SERVICES
After the initial planning process, the client's goals and economic conditions
continue to change. Revisions in the tax law, changes in inflation, fluctuation in
interest rates and instability in investment mediums, combined with changes in the
client's personal situation, require that financial and tax planning is an ongoing
process.
Quantum offers asset management and ongoing financial planning to provide
periodic review and revisions of the major components of a client's financial plan
to help assure that goals are being achieved. These services include summarizing
individual investments and effecting changes to your existing portfolio, and
updating your financial plan.
Ongoing asset management and financial planning does not include the
monitoring, review or surveillance of investment of other assets outside of
Quantum’s management.
Below are some services included in our Asset Management Services.
INVESTMENT SERVICES
These services include the design and construction of an investment portfolio
consistent with the client’s financial constraints and objectives, risk tolerance and
prevailing economic conditions.
Economic factors such as the supply of money, various interest rates and changes
in inflation are analyzed to help predict the future economic environment which, in
turn, guides our asset allocation model and the selection of investments suitable
for particular investment portfolios. Political factors are considered in those areas
that impact our overall economic environment.
Our asset allocation model helps us to determine what types of assets to include
or exclude from portfolio considerations and in what proportion those asset types
should be held. We do not adhere to the principle of attempting to “time” the market
nor do we attempt to “switch” to a particular asset class to take advantage of
peculiar and temporary insights into the capital markets.
ONGOING ASSET ALLOCATION AND MANAGEMENT
Quantum monitors the client's investment portfolio and makes investment changes
as we believe they are needed. All or a portion of the client's investment portfolio
may be managed as agreed to between the client and Quantum.
The client's investment portfolio will be analyzed and reevaluated on a regular
basis. Quantum will implement changes. The client acknowledges the risk
involved in any investment and that any one investment may or may not perform
as expected.
Tailored Relationships
Quantum services are always provided based on the individual needs of each
client. This means, for example, that individual clients are given the ability to
impose restrictions on the accounts under management, including specific
investment selections and sectors. We work with each client on a one-on-one basis
through interviews and ongoing conversation to determine the client’s investment
objectives and suitability information.
Asset Management
Assets are invested primarily in mutual funds through a brokerage account.
Investments may also include: exchange traded funds (ETFs), equities (stocks),
warrants, corporate debt securities, commercial paper, certificates of deposit,
municipal securities, investment company securities, and U. S. government
securities. Investments in private placements are not available through Quantum.
We may recommend clients open a high-yield savings account with a third-party
platform provider for larger cash positions.
Important Information for Retirement Investors
When we recommend that you rollover retirement assets or transfer existing
retirement assets (such as a 401(k) or an IRA) to our management, we have a
conflict of interest. This is because we will generally earn additional revenue when
we manage more assets. In making the recommendation, however, we do so only
after determining that the recommendation is in your best interest. Further, in
making any recommendation to transfer or rollover retirement assets, we do so as
a “fiduciary,” as that term is defined in ERISA or the Internal Revenue Code, or
both. We also acknowledge we are a fiduciary under ERISA or the Internal
Revenue Code with respect to our ongoing investment advisory recommendations
and discretionary asset management services, as described in the advisory
agreement we execute with you. To the extent we provide non-fiduciary services
to you, those will be described in the advisory agreement.
Assets Under Management and Advisement
As of September 30, 2023, Quantum’s assets under management and advisement
totaled $498,203,048. Of this amount, $466,424,799 are considered Regulatory
Assets Under Management (Regulatory AUM) and were directly managed by
Quantum. $452,421,096of our Regulatory AUM was managed on a discretionary
basis and $14,003,703 was managed on a non-discretionary basis. Our assets
under advisement (Non-Regulatory AUM), which were all non-discretionary assets
held away from our firm, totaled $31,778,249.