SUMMARY OF FORM ADV, PART II.  Updated 2/20/2008.
California Department of Corporations File 925-2769, CRD number 136345.

This summary gives information about me and my business.  The information has not been approved or verified by any governmental authority.   Registration is generally required if a California adviser is compensated for financial planning.

Services and Fees. FSD provides Financial Planning, Tax Planning, Tax Compliance and Tax Representation Services.

Financial Planning Services assist customers to identify their financial goals and to manage their financial affairs. The emphasis is retirement planning and the priority is effective strategies which can be implemented simply and at low cost. FSD analyzes specific investments such as the investment options within an IRA or pension plan. FSD makes recommendations with respect to trust provisions, beneficiary designations and estate planning documents. Financial Planning Services also include seminars and other educational programs and materials.

Tax Planning Services allow customers to estimate the tax implications of prospective transactions such as the conversion of a traditional pension to a Roth IRA or the exercise of employee stock options.

Tax Compliance Services include the preparation of income tax returns for individuals, trust and estates, the preparation of estate and gift tax returns and fiduciary accounting services for estates and trusts. FSD does not provide general accounting services and does not prepare business tax returns other than Schedules C and E.

Tax Representation Services include correspondence, meetings, analysis and research related to a customer's rights and liabilities under the tax laws and regulations. Representation Services generally require the customer to execute a power of attorney.

All customers must execute an engagement letter after the introductory consultation. The engagement letter includes a summary of the services to be provided. A cost estimate is provided when it is realistic to do so.

Services are generally provided on an hourly basis. As of January 2008, fees are $240 an hour for financial and tax planning services, $180 an hour for compliance services and $240 an hour for representation services. These fees include all ordinary expenses.  Customer approval is required for any extraordinary expenses.

Different pricing options can be negotiated.  These may involve a fixed fee or may be based on the size of the investment portfolio. A deposit may be required but will not exceed $500 for financial planning services.

The special offer for an introductory consultation involves a comprehensive interview to understand the customer's concerns, health, assets and liabilities, financial aspirations, income tax situation, insurance needs, investment strategy, estate plan and special needs (for a child or parent, for example.)  The interview is summarized in a written report with suggested follow-up actions, if any.

Customers may terminate an engagement at any time and any unearned deposit will be returned promptly.  FSD may resign from an engagement at any time.  FSD will suspend services if bills are not paid promptly.

No direct or indirect compensation is provided in exchange for referrals who could become FSD customers.  When other professionals retain FSD to provide services to their clients, Mr. Lingane may negotiate his fee in consideration of the referral.

The California Department of Corporations requires the following disclosure: "Comparable services may be available from other sources at a lower or higher cost."

Types of Investments.  FSD offers investment advice primarily on mutual funds, exchange traded funds and notes and US government bonds. FSD bases its recommendations on information from the financial media, on its own research and the research of others. No attempt is made to forecast the performance of specific investment sectors. The usual investment strategy is to hold a diversified portfolio and to rebalance annually. Margin may be used temporarily to even out cash flows.

Year of birth, 1940
AB, Chemistry, magna cum laude, Harvard College, 1962
PhD, Chemistry, California Institute of Technology, 1966
Certificate in Personal Financial Planning, with distinction, UC Berkeley, 1997
Fellow, National Tax Practice Institute (Representation and Practice before the IRS), 1999
Financial Security by Design, since1995
Licensed as a tax professional by the Internal Revenue Service, since 1997
Licensed by the Certified Financial Planner Board of Standards, since 1998
Investment Adviser Law Examination (Series 65), 1998
Registered as an investment adviser, since 1998

There are no court or regulatory actions taken or pending against FSD or Mr. Lingane.

Associates are required to pass the appropriate examinations and to have related business experience.

Other Financial Industry Activities or Affiliations. Neither FSD nor Mr. Lingane nor a related person is registered as a broker-dealer nor are they general partners in any partnership nor do they have material relationships with any firm offering accounting, financial or legal services.  On occasion, FSD consults for firms offering accounting, financial or legal services.

Mr. Lingane is a member of the Financial Planning Association and a technical reviewer for the Association's Journal of Financial Planning.  He is also a member of the Estate Planning Council of Diablo Valley and of  the American Chemical Society.

Participation or Interest in Client Transactions. Mr. Lingane may purchase the same securities for his personal account as he recommends to clients. Should this occur, Mr. Lingane will ensure that clients' transactions are executed in accordance with applicable SEC and state regulations.

Conditions for Managing Accounts. FSD does not require a minimum account value or other conditions for access to its services.

Review of Accounts. FSD will review client accounts as recommended transactions occur. Clients will receive confirmations and statements from the broker-dealer(s) maintaining their accounts. FSD will prepare additional reports at the request of clients and as recommended transactions occur.

Investment or Brokerage Discretion. FSD does not accept discretionary authority over customer accounts and customers may select any broker-dealer to execute their trades. FSD recommends broker-dealers who offer a  broad range of services, charge low fees, provide excellent service, hire knowledgeable representatives and provide informative statements and publications.  Mr. Lingane maintains his personal account(s) at some or all of the recommended broker-dealers.

Additional Compensation. In order to focus on the best interests of its customers, neither FSD nor Mr. Lingane receives any economic benefit (including commissions, equipment and non research services) through referrals to a broker-dealer or to any financial, accounting or legal firm.

Code of Ethics. FSD subscribes to the Code of Ethics of the Certified Financial Planner Board of Standards. Simply put, Mr. Lingane pledges to put the customer's interests before his own interests.

FSD will not sell customer information or dispose of it in a careless manner or use it as the basis for an unsolicited sales presentation. Customer information will be kept confidential indefinitely except when the customer authorizes FSD in writing to share the information or when disclosure is required by law or by a regulatory agency, such as the California Department of Corporations or the Certified Financial Planner Board of Standards, pursuant to a disciplinary review process.

Customers and prospective customers will receive a copy of this pledge and of the Certified Financial Planner Board's Code of Ethics upon request.

This page was most recently posted February 20, 2008.

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