About Berno Financial Management

CREATING FINANCIAL PEACE OF MIND You’ve worked hard to accumulate your wealth. But you may not have the time, or the expertise, to oversee

all aspects of your financial life on your own. At Berno Financial Management, we work with you to develop a

comprehensive financial plan that will cultivate your financial security and peace of mind.

Since 1993, Berno Financial Management, Inc., has helped proactive

individuals and their families make the most of their personal

finances. As an independent, fee-only management firm, we offer

unbiased advice as part of our comprehensive personal financial

planning and investment management services. We concentrate on

developing close personal relationships with our clients, focusing on

their complete financial picture. We also coordinate our advice with

other specialized advisors, such as CPAs, attorneys and insurance

professionals, making referrals as needed.

BERNOFINANCIALMANAGEMENTFor Financial Peace of Mind

Berno Financial Management, Inc. | 7454 Jager Ct., Cincinnati, OH 45230-4344 | Phone: (513) 474-9191 | www.bernofinmgt.com

HELPING YOU DEVELOP A STRONG FINANCIAL PLAN

“WE TAKE THE TIME TO LEARN ABOUT YOUR CURRENT FINANCIAL SITUATION AS WELL AS

YOUR LONG-TERM GOALS AND NEEDS.”

We believe that financial planning involves more than just investment

management. Instead, we take the time to learn about your complete

current financial situation, as well as your long-term goals and needs.

We then use that information to develop a comprehensive financial

plan as well as an investment portfolio proposal using a “Total

Portfolio Approach” that considers all your different assets together.

Our advice is academically based and grounded in the belief that a

passive, low-cost, tax-efficient, multi-asset class investment strategy

is the best way to achieve the investment returns needed to meet your

goals over the long term.

Our team is led by Bruce J. Berno, a CERTIFIED FINANCIAL

PLANNER™ professional. Berno Financial Management, Inc., is a

member of the National Association of Personal Financial Advisors

(NAPFA), the industry’s most selective professional association. We

have been recognized locally and nationally as an expert financial

management firm, having been included in the Top Wealth Manager’s

List in Bloomberg Wealth Manager since 2001, and being named

as a 2010 Five Star Wealth Manager by Five Star Professional and

Cincinnati Magazine.

INVESTMENT MANAGEMENT

RETIREMENT PLANNING

INCOME TAX MANAGEMENT

WHAT WE DOAt Berno Financial Management, we offer comprehensive financial planning services. We can help answer

your questions and address your concerns about a wide array of financial issues, including:

CASH FLOW MANAGEMENT

ESTATE PLANNING

INSURANCE NEEDS

EMPLOYEE BENEFIT PLANS

EDUCATION FUNDING

CHARITABLE GIVING STRATEGIES

SERVICE OFFERINGSPERSONAL WEALTH MANAGEMENT Our Personal Wealth Management service considers your complete

financial picture. It helps you and your family address the various

financial questions, issues and concerns that arise throughout each

stage of life, from retirement planning and managing income taxes

to developing an estate plan or funding a child’s college education.

Personal Wealth Management is a continuous process that includes

investment management. This offering involves a long-term

relationship with the Berno Financial Management team and is the

service used by the great majority of our clients.



FINANCIAL PLANNING CONSULTATIONOur Financial Planning Consultation is a modular or comprehensive

financial plan with limited investment advice. It is limited in scope and

designed for clients who do not need Personal Wealth Management

or who will qualify for Personal Wealth Management in the future.

During the Financial Planning Consultation, we’ll help clients address

specific financial questions, such as:

• Do we have appropriate insurance coverage?

• How much do we need to save for college for our children?

• Can I retire in five years and not outlive my money?


WHAT YOU’LL RECEIVE You’ll receive, in a staged sequence, up to five questionnaires:

• Let’s Get Started Part 1: You provide your primary financial concerns, key objectives, and basic family and financial data

• Let’s Get Started Part 2: You identify qualitative factors that influence your financial decision making and goals

• Let’s Get Started Part 3: You provide detailed quantitative information about your current financial situation, including assets, debts, insurance, investments and estate planning

• Personal Financial Risk Profile: You provide information on your investment return expectations, financial decision making and risk tolerance

• Your Financial Goal Plan Personal Retirement Projection Questionnaire: You identify and prioritize needs and goals during retirement, including ideal versus acceptable dollar amounts

GETTING TO KNOW YOU We begin with a thorough data-gathering process so that we can understand your unique situation and goals. During this stage, we ask you to complete questionnaires that provide:

• Both quantitative and qualitative information about your personal finances, concerns and goals

• A self-assessment of your current financial situation

• A psychographic profile of your investment return expectations and financial decision making process

• Depending on your stage of life and circumstances, your financial needs and goals during retirement

HOW WE WORKHelping you reach your goals is at the core of our financial planning process. When you become a Berno Financial Management client, we’ll engage in the following process as we develop your financial plan:

OUR FINANCIAL PLANNING PROCESS

GETTING TO KNOW YOU

INCREASING YOUR KNOWLEDGE AND DEVELOPING REALISTIC EXPECTATIONS

CREATING AND IMPLEMENTING YOUR INVESTMENT PORTFOLIO

MANAGING YOUR INVESTMENTS AND MONITORING YOUR FINANCIAL PLAN



WHAT YOU’LL RECEIVE We provide you with:

• An Investment Portfolio Proposal

• An Investment Policy Statement, which will be revised and updated as needed

WHAT YOU’LL RECEIVE We provide frequent reports and updates so that you are always informed of the status of your investments, including:

• Monthly Quick Summary Portfolio Reports

• Quarterly Custom Portfolio Reports

• Annual Investment Review

• Annual Net Worth Report

• Annual Cash Flow Reports

• Financial Plan, Estate Plan and Insurance Reviews as needed, typically every five years

CREATING AND IMPLEMENTING YOUR INVESTMENT PORTFOLIO Using the information gathered in Step 1, we create a personalized investment plan tailored to meet your specific financial situation and plan. To do this we:

• Create a portfolio proposal factoring in strategic asset allocation, asset location, tax efficiency and cash flow considerations

• Present the proposal to you for your review and approval

• Prepare an Investment Policy Statement

• Implement the Total Portfolio Approach

MANAGING YOUR INVESTMENTS AND MONITORING YOUR FINANCIAL PLAN We manage your investments over the long-term by:

• Conducting ongoing review and monitoring

• Revising and rebalancing your portfolio as necessary

• Delivering regular reports on the status of your investments

WHAT YOU’LL RECEIVE You will receive:

• Investments 101: Client Education Binder

• Independent, third-party academically based investment research

• Depending on your stage of life and circumstances, a Financial Goal Plan Personal Retirement Projection identifying your goals and the probability of achieving them

INCREASING YOUR KNOWLEDGE AND DEVELOPING REALISTIC EXPECTATIONS Our team provides an educational introduction, tailored to your level of curiosity and interest, of our approach to financial planning and investment management so that we can:

• Help each client develop a basic understanding of financial planning principles

• Clearly communicate our investment philosophy

• Establish your investment objectives and policies

OUR INVESTMENT PHILOSOPHYWe believe in broad diversification to optimize risk and return and we manage your portfolio with income tax efficiency and cash flow

considerations in mind. Our investment philosophy is grounded on objective, academically based models that minimize market

forecasting or prognostications.

Based on our thorough initial data gathering, we develop a complete picture of your current financial situation, your investment return needs

and expectations, and your risk tolerance. With this information in hand, we’re able to develop an investment portfolio designed to create the

returns you need to reach your longer term goals while also minimizing your risk. Because we believe that cash flow is a major determinant of

financial success, we strive to develop a plan that generates the necessary cash flow to sustain your desired lifestyle over the long term.

OUR FOUR CORE PRINCIPLESAs we work with you to develop an appropriate financial plan and investment portfolio, we keep four core principles in mind:

TOTAL PORTFOLIO APPROACH We use an asset allocation and asset location strategy to integrate and coordinate all of your family accounts, including:

• Single, joint and trust accounts

• Custodian accounts for minor children

• 529 college savings plans



• Traditional or rollover IRAs

• Roth IRAs

• 401(k), profit-sharing or employer plans

• Annuities

• Non-qualified retirement plans

• Employer stock options

BROADLY DIVERSIFIED PORTFOLIO We are strong believers in diversification and use a “multi-asset class” strategy for diversification. Investments may include:

• U.S. stocks, diversified by size and investment style

• International and emerging market stocks

• Real estate investment trusts

• Commodities

• Low-volatility investments

• Corporate, government or municipal bonds

• Inflation-protected bonds

RISK AND RETURN ARE RELATED (THE 3 R’S) Every investor wants a low-risk portfolio but low returns may not enable you to reach your goals. The return needed to meet your goals may require a higher level of risk.

MINIMIZE FUND FEES, EXPENSES AND INCOME TAXES All other things being equal, lower costs and lower taxes mean higher net returns. We cannot control stock market conditions or interest rates, but we can add value by minimizing costs and income taxes. Net returns are what count.

WHY CHOOSE BERNO FINANCIAL MANAGEMENT?Not all financial services firms are created equal. Berno Financial Management offers clients a unique value based on our

independent advice, fee-only, fiduciary services and comprehensive approach to planning. In addition, our client-focused

approach and commitment to professional continuing education ensure that we provide the best possible service to clients.

HOW WE’RE DIFFERENTINDEPENDENT ADVICEWe are independent and are not affiliated with any brokerage firm,

bank, mutual fund, insurance company, accounting firm or law firm.

Our team provides completely objective advice, with referrals made

to specialists as necessary. The services we provide are coordinated

with your other professional advisors to meet your needs.

FEE-ONLY FIDUCIARY ADVISORWe are paid solely by you with a fully disclosed fee based on a

flat fee and percentage of investment assets, flat fee or hourly

rate. This avoids potential conflicts of interest caused by sales

commissions or incentive awards. We act as a fiduciary and put

our client’s interests first.

COMPREHENSIVE PLANNINGWe offer a broad array of personal wealth management and

investment advisory services, which are tailored to each client’s

specific needs. Our firm’s specialties are cash flow management,

investment advisory services, retirement planning and estate

planning.

CLIENT-FOCUSEDWe are a small firm, offering personalized attention and strong long-

term client retention. Our client service is “process-driven”; we get to

know each client on a personal level, and our initial data gathering

is extensive and detailed. We know that all of our clients want to be

financially successful, secure and responsible, and they choose to

work with us because they lack the time and experience to manage

their finances on their own.

NATIONALLY RECOGNIZED AND CREDENTIALEDWe are a member of the National Association of Personal Financial

Advisors (NAPFA) and have been included in the Top Wealth

Manager’s List in Bloomberg Wealth Manager since 2001. Our firm

was also named as a 2010 Five Star Wealth Manager by Five Star

Professional and Cincinnati Magazine. In addition, each member

of our client services team is deeply committed to participating in

ongoing continuing education efforts so they can offer the best

possible service to clients.



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About Berno Financial Management