Description of Advisory Firm
Planning Directions, Inc.’s registration was granted by the U.S. Securities and Exchange Commission on January
14, 2004. William F. Muller is CEO and 50% owner of the firm. Matthew Ellis is President, Chief Compliance Officer
and 50% owner of the firm. The firm is not publicly owned or traded. There are no indirect owners of the firm or
intermediaries which have any ownership interest in the firm. As of December 31, 2023, the firm managed
$422,810,724 in asset of which, $386,011,809 on a discretionary basis and $36,798,914 on a nondiscretionary basis.
This Brochure is designed to provide detailed and clear information relating to each item noted in the table of
contents. Certain disclosures are repeated in one or more items, and/or other items are referred to in an effort
to be as comprehensive as possible on the broad subject matters discussed. Within this Brochure, certain terms
in either upper- or lowercase are used as follows:
“We,” “us,” and “our” refer to Planning Directions Inc.
“Advisor” refers to persons who provide investment recommendations or advice on behalf of Planning
Directions Inc.
“You,” “yours,” and “client” refer to clients of Planning Directions Inc and its advisors.
Types of Advisory Services
Investment Management Services
We are in the business of managing individually tailored investment portfolios. Our firm provides continuous
advice to a client regarding the investment of client funds based on the individual needs of the client. Through
personal discussions in which goals and objectives based on a client's particular circumstances are established,
we develop a client's personal investment policy statement. We design an investment plan with an asset
allocation target and create and manage a portfolio based on that policy and allocation target. During our data-
gathering process, we determine the client’s individual objectives, time horizons, risk tolerance, and liquidity
needs. We may also review and discuss a client’s prior investment history, as well as family composition and
background.
Account supervision is guided by the stated objectives of the client (i.e., maximum capital appreciation, growth,
income, or growth and income), as well as tax considerations. Clients may impose reasonable restrictions on
investing in certain securities, types of securities, or industry sectors. Fees pertaining to this service are outlined
in Item 5 of this brochure.
Financial Planning
Financial planning is a comprehensive evaluation of a client’s current and future financial state by using currently
known variables to predict future cash flows, asset values and withdrawal plans. The key defining aspect of
financial planning is that through the financial planning process, all questions, information and analysis will be
considered as they impact and are impacted by the entire financial and life situation of the client. Clients
purchasing this service will receive a written or an electronic report, providing the client with a detailed financial
plan designed to help achieve his or her stated financial goals and objectives.
In general, the financial plan will address any or all of the following areas of concern. The client and advisor will
work together to select the specific areas to cover. These areas may include, but are not limited to, the following:
Budgeting & Cash Flow Analysis: We will conduct a review of your income and expenses to determine
your current surplus or deficit along with advice on prioritizing how any surplus should be used or how to
reduce expenses if they exceed your income. Advice may also be provided on which debts to pay off first
based on factors such as the interest rate of the debt and any income tax ramifications. We may also
recommend what we believe to be an appropriate cash reserve that should be considered for emergencies
and other financial goals, along with a review of accounts (such as money market funds) for such reserves,
plus strategies to save desired amounts.
Education Planning: Includes projecting the amount that will be needed to achieve college or other post-
secondary education funding goals, along with advice on ways for you to save the desired amount.
Recommendations as to savings strategies are included, and, if needed, we will review your financial picture
as it relates to eligibility for financial aid or the best way to contribute to grandchildren (if appropriate).
Fringe Benefits Analysis: We will provide review and analyze as to whether you, as an employee, are taking
the maximum advantage possible of your employee benefits. If you are a business owner, we will consider
and/or recommend the various benefit programs that can be structured to meet both business and
personal retirement goals.
Estate Planning Analysis: This usually includes an analysis of your exposure to estate taxes and your current
estate plan, which may include whether you have a will, powers of attorney, trusts and other related
documents. Our advice also typically includes ways for you to minimize or avoid future estate taxes by
implementing appropriate estate planning strategies such as the use of applicable trusts.
We always recommend that you consult with a qualified attorney when you initiate, update, or complete
estate planning activities. We may provide you with contact information for attorneys who specialize in
estate planning when you wish to hire an attorney for such purposes. From time-to-time, we will participate
in meetings or phone calls between you and your attorney with your approval or request.
Investment Analysis and Planning: This may involve developing an asset allocation strategy to meet clients’
financial goals and risk tolerance, providing information on investment vehicles and strategies, reviewing
employee stock options, as well as assisting you in establishing your own investment account at a selected
broker/dealer or custodian. The strategies and types of investments we may recommend are further
discussed in Item 8 of this brochure.
Retirement Planning: Our retirement planning services typically include projections of your likelihood of
achieving your retirement goals, typically focusing on financial independence as the primary objective. For
situations where projections show less than the desired results, we may make recommendations, including
those that may impact the original projections by adjusting certain variables (i.e., working longer, saving
more, spending less, taking more risk with investments).
If you are near retirement or already retired, advice may be given on appropriate distribution strategies to
minimize the likelihood of running out of money or having to adversely alter spending during your
retirement years.
Income Tax Planning Analysis: Advice may include ways to minimize current and future income taxes as a
part of your overall financial planning picture. For example, we may make recommendations on which type
of account(s) or specific investments should be owned based in part on their “tax efficiency,” with
consideration that there is always a possibility of future changes to federal, state or local tax laws and rates
that may impact your situation.
We recommend that you consult with a qualified tax professional before initiating any tax planning strategy,
and we may provide you with contact information for accountants or attorneys who specialize in this area
if you wish to hire someone for such purposes. We will participate in meetings or phone calls between you
and your tax professional with your approval.
The Adviser or the client may terminate the Advisory Agreement at any time on thirty (30) days prior notice.
Notice shall be in writing and delivered to the appropriate party's last known address. Any unpaid fees as have
been earned by the Adviser shall be paid within fifteen (15) days of the termination of this Agreement.
The specific advisory program you select may cost you more or less than purchasing program services separately.
Factors that bear upon the cost of a particular advisory program in relation to the cost of the same services
purchased separately include, but may not be limited to, the type and size of the account; the historical or
expected size or number of trades for the account; the types of securities and strategies involved; the amount of
fees, commissions, and other charges that apply at the account or transaction level; and the number and range
of supplementary advisory and client-related services provided to the account. Lower fees for comparable
services may be available from other sources. You are under no obligation to engage us for services and are free
to use the firm of your choice.
Investment recommendations and advice offered by Planning Directions and its advisors do not constitute legal,
tax, or accounting advice. Clients should coordinate and discuss the impact of the financial advice they receive
from their advisor with their attorney and accountant. Clients should also inform their advisor promptly of any
changes in their financial situation, investment goals, needs, or objectives. Failure to notify the advisor of any
material changes could result in investment advice not meeting the changing needs
of the client.
IRA Rollover Considerations
As part of our financial planning and advisory services, we may provide you with recommendations and advice
concerning your employer retirement plan or other qualified retirement account. When appropriate, we may
recommend that you withdraw the assets from your employer’s retirement plan or other qualified retirement
account and roll the assets over to an individual retirement account (“IRA”) to be managed by our firm or a Third-
Party Manager that we recommend. If you elect to roll the assets to an IRA under our management, we will
charge you an asset-based fee as described in Item 5. This practice presents a conflict of interest because our
Advisory Representative has an incentive to recommend a rollover to you for the purpose of generating fee-
based compensation rather than solely based on your needs. You are under no obligation, contractually or
otherwise, to complete the rollover. Furthermore, if you do complete the rollover, you are under no obligation
to have your IRA assets managed under our program or a Third-Party Managed Program. You have the right to
decide whether to complete the rollover and the right to consult with other financial professionals.
Some employers permit former employees to keep their retirement assets in their company plan. Also, current
employees can sometimes move assets out of their company plan before they retire or change jobs. In
determining whether to complete the rollover to an IRA, and to the extent the following options are available,
you should consider the costs and benefits of each.
An employee will typically have four options:
1. Leave the funds in your employer’s (former employer’s) plan.
2. Roll over the funds to a new employer’s retirement plan.
3. Cash out and take a taxable distribution from the plan.
4. Roll the funds into an IRA rollover account.
Each of these options has advantages and disadvantages. Before making a change, we encourage you to speak
with your financial advisor, CPA and/or tax attorney.
Before rolling over your retirement funds to an IRA for us to manage or to a Third-Party Managed Program,
carefully consider the following. NOTE: This list is not exhaustive.
1. Determine whether the investment options in your employer’s retirement plan address your needs or
whether other types of investments are needed.
a. Employer retirement plans generally have a more limited investment menu than IRAs.
b. Employer retirement plans may have unique investment options not available to the public, such
as employer securities or previously closed funds.
2. Your current plan may have lower fees than our fee and/or the Third-Party Manager’s fee combined.
a. If you are interested in investing only in mutual funds, you should understand the cost structure of
the share classes available in your employer’s retirement plan and how the costs of those share
classes compare with those available in an IRA.
3. You should understand the various products and services available through an IRA provider and their
costs.
4. It is likely you will not be charged a management fee and will not receive ongoing asset management
services unless you elect to have such services. If your plan offers management services, the fee
associated with the service may be more or less than our fee and/or the Third-Party Manager’s fee
combined.
5. The Third-Party Manager’s or our management strategy may have higher risk than the options provided
to you in your plan.
6. Your current plan may offer financial advice, guidance, management and/or portfolio options at no
additional cost.
7. If you keep your assets titled in a 401(k) or retirement account, you could potentially delay your required
minimum distribution beyond age 73.
8. Your 401(k) may offer more liability protection than a rollover IRA; each state varies. Generally, Federal
law protects assets in qualified plans from creditors. Since 2005, IRA assets have been generally
protected from creditors in bankruptcies; however, there can be exceptions. Consult an attorney if you
are concerned about protecting your retirement plan assets from creditors.
9. You may be able to take out a loan on your 401(k), but not from an IRA.
10. IRA assets can be accessed any time; however, distributions are subject to ordinary income tax and may
also be subject to a 10% early distribution penalty unless they qualify for an exception such as disability,
higher education expenses or a home purchase.
11. If you own company stock in your plan, you may be able to liquidate those shares at a lower capital gains
tax rate.
12. Your plan may allow you to hire us or another firm as the manager and keep the assets titled in the plan
name.
It is important that you understand your options, their features, and their differences, and decide whether a
rollover is best for you. If you have questions, contact us at our main number listed on the cover page of this
brochure.
In addition to complying with applicable SEC rules, Planning Directions Inc is subject to certain rules and
regulations adopted by the U.S. Department of Labor when we provide nondiscretionary investment advice to
retirement plan participants and IRA owners. When these DOL rules apply, our advisors and Planning Directions
Inc are “fiduciaries,” for purposes of the Employee Retirement Income Security Act of 1974 (“ERISA”), as
amended, and the Internal Revenue Code of 1986 (“the Code”), as amended. Therefore, Planning Directions Inc
and our advisors may not receive payments that create conflicts of interest when providing fiduciary investment
advice to plan sponsors, plan participants, and IRA owners, unless we comply with a prohibited transaction
exemption (“PTE”). Beginning December 20, 2021, Planning Directions Inc and our advisors will comply with
ERISA and the Code by using PTE 2020-02. As fiduciaries under ERISA and the Code, we render advice that is in
plan participants’ and IRA customers’ best interest. Planning Directions Inc and our advisors’ status as an
ERISA/Code fiduciary is limited to ERISA/Code covered nondiscretionary advice and recommendations regarding
rolling over a retirement account and does not extend to all situations.
Client Tailored Services and Client Imposed Restrictions
We offer the same suite of services to all of our clients. However, specific client financial plans and their
implementation are dependent upon a client Investment Policy Statement, which outlines each client’s current
situation (current assets, tax levels, and risk tolerance levels) and is used to construct a client specific plan to aid
in the selection of a portfolio that matches restrictions, needs, and targets.
Wrap Fee Programs
We do not participate in wrap fee programs.
Program Choice Conflicts of Interest
Clients should be aware that the compensation to Planning Directions Inc and your advisor will differ according
to the specific advisory programs or services provided. This compensation to Planning Directions Inc and your
advisor may be more than the amounts we would otherwise receive if you participated in another program or
paid for investment advice, brokerage, or other relevant services separately. Lower fees for comparable services
may be available through our firm or from other sources. Planning Directions Inc and your advisor have a financial
incentive to recommend advisory programs or services that provide us higher compensation over other
comparable programs or services available from our firm or elsewhere that may cost you less. For example, the
costs you will incur to have your account managed by our firm may be more than what other similar firms may
charge. It’s important to understand all the associated costs and benefits the program and services you select so
you can decide which programs and services are best suited for your unique financial goals, investment objective,
and time horizon. We encourage you to review our Form CRS and to discuss your options with your advisor.
In addition, Commonwealth offers our firm and our advisors one or more forms of financial benefits based on
our total assets under management held at Commonwealth or in Commonwealth’s PPS Program accounts, as
well as financial assistance for transitioning from another firm to Commonwealth. The types of financial benefits
that your advisor may receive from Commonwealth include, but are not limited to, forgivable or unforgivable
loans, enhanced payouts, and discounts or waivers on transaction, platform, and account fees; technology fees;
research package fees; financial planning software fees; administrative fees; brokerage account fees; account
transfer fees; licensing and insurance costs; and the cost of attending conferences and events. The enhanced
payouts, discounts, and other forms of financial benefits that your advisor may have the opportunity to receive
from Commonwealth provide a financial incentive for our firm and your advisor to select Commonwealth as
broker/dealer for your accounts over other broker/dealers from which they may not receive similar financial
benefits. Please see items 12 and 14 of this Brochure for more detailed information about these types of conflicts
and our relationship with Commonwealth.