Description of Advisory Firm
The U.S. Securities and Exchange Commission granted Sensible Financial Planning & Management, LLC’s
registration on April 18, 2005. Frederick Hotchkiss Miller, Jr. (CRD Number 4540301) is a Member. Mr.
Miller is the majority equity owner of the firm. The firm is not publicly owned or traded. There are no
indirect owners of the firm or intermediaries who have any ownership interest in the firm. The firm
manages each client’s portfolio on an individualized basis. Clients may impose restrictions on their
accounts. The firm does not participate in wrap programs. As of December 31, 2023, Sensible Financial
managed $760,524,428 in assets on a discretionary basis, representing 1,572 accounts and managed
$14,383,017 on a nondiscretionary basis representing 25 accounts.
Types of Advisory Services
Sensible Financial provides both investment supervisory services and fee-only financial planning services
for clients.
Financial Planning
We provide financial planning services on topics such as retirement planning, risk management and
insurance, college savings, cash flow, debt management, work benefits, managing credit scores and
reports, and estate and incapacity 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. Through the
financial planning process, we consider all questions, information and analysis as they affect and are
affected by the client’s entire financial and life situation. Financial planning is inherently uncertain, as
future events that may have large effects on clients’ situations and plans are unknown when we develop
the plan. Clients purchasing this service will receive a written or an electronic report, providing the client
with a detailed financial plan designed to achieve their stated financial goals and objectives.
In general, the financial plan may address any or all of the following areas. The client and Sensible
Financial will work together to select the specific areas to cover. These areas may include, but are not
limited to, the following:
• Retirement Planning: Our retirement planning services typically include projections of the
likelihood that you will achieve your financial goals, typically focusing on your sustainable living
standard as the primary objective. For situations where projections show less than the desired
results, we may make recommendations, including those that may affect 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, we may provide advice on appropriate distribution
strategies to minimize the likelihood of running out of money or having to reduce your spending
during your retirement years.
• Insurance Review: Review of existing policies to ensure proper coverage for life, disability, long-
term care and personal liability. If no coverage currently exists, we may analyze the risks
associated with having no coverage and suggest that coverage be put in place.
• College Savings: Includes projecting the amount that will be needed to reach college or other
post-secondary education funding goals, along with advice on ways for you to save the desired
amount. This advice includes savings strategies recommendations. We may also review your
financial picture as it relates to eligibility for financial aid or the best way to contribute to
grandchildren (if appropriate).
• Cash Flow and Debt Management: We will conduct a review of your income and expenses to
identify current or near term cash flow issues, and provide advice on how to allocate your savings
or how to reduce expenses if they are inconsistent with your long-term objectives. We may also
provide advice on which debts to pay off first based on factors such as the interest rate of the
debt and 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.
• Employee Benefits Optimization: We will provide review and analysis as to whether you, as an
employee, are taking maximum advantage of your available employee benefits. If you are a
business owner, we may consider and/or recommend benefit programs that can be structured
to meet both business and personal retirement goals.
• Estate Planning: 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 identifying 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 may participate in meetings or phone calls between you and your attorney with
your approval or request.
• Financial Goals: We will help clients identify financial goals and develop a plan to reach them.
We will identify what you plan to accomplish, what resources you will need, how much time you
will need to reach the goal, and how much you should budget for your goal.
• Investment Analysis: This may involve providing information on the types of investment vehicles
available, employee stock options, investment analysis and strategies, asset selection and
portfolio design, as well as assisting you in establishing your own investment account(s) 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.
Investment Supervisory Services
Our firm provides continuous investment advice to our clients based on their individual needs. During
our financial planning process, we work with each client to identify goals, objectives, time horizons, risk
capacity, risk tolerance, and liquidity needs. We may also review and discuss a client’s prior investment
history, as well as family composition and background. Then we work with them to develop a personal
investment policy or investment plan (including an asset allocation target) designed to accomplish those
goals and objectives. We design and manage each portfolio based on that policy and allocation target.
We guide our account supervision by each client’s stated objectives, taking tax considerations into
account. Clients may impose reasonable restrictions on investing in certain securities, types of securities,
or industry sectors.
Sensible Financial offers two ongoing services:
• Portfolio Management: Sensible Financial monitors investment assets, reports performance, and
periodically rebalances the holdings to align them with the client’s target asset allocation.
• Integrated Financial Advisory: Sensible Financial works to help the client identify and take
actions to accomplish the client’s financial planning objectives as identified in the client’s
financial plan. We also update a client’s financial plan when personal or financial circumstances
change significantly. In addition, Sensible Financial monitors investment assets, reports
performance, and periodically rebalances the holdings to align them with the client’s target asset
allocation.
Retirement Plan Advisory Services
Sensible Financial provides non-discretionary investment advisory services to retirement and pension
plans.
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 depend upon the client’s current situation (income, tax levels, risk capacity and risk
tolerance levels) and also inform the selection of a portfolio that matches restrictions, needs, and
targets.
Wrap Fee Programs
We do not participate in wrap fee programs.