FAQ's

What does a financial advisor do?

A financial advisor helps individuals manage their finances. Advisors develop strategies for asset allocation, make recommendations on investment selection, and regularly monitor portfolios to ensure they remain consistent with the investor’s goals. In addition, Advisors will develop financial plans that address long term goals and answer questions such as; am I saving enough money for retirement, how much income will I have at retirement, will I run out of money in retirement etc….

How do I choose a financial advisor?

One chooses a financial advisor similar to choosing an Accountant or Lawyer. Generally, getting a referral from a trusted friend or colleague is best. Equally important, one should first meet and interview a prospective financial advisor to make sure the Advisor’s specialty and style line up with you and your goals.

What is a fiduciary financial advisor?

The only financial advisor you should work with is fiduciary advisor, who will work with you for a mutually agreed to fee. Generally this may be a flat fee or a percentage of assets under management. A fiduciary is not compensated by commissions which will eliminate conflicts of interest. A fiduciary advisor is legally obligated to act in your best interest.

Should I work with a CFP or a financial planner?

Many Financial Advisors have specializations that are identified by a designation that may include; CFP, ChFC, CFA. AIF, CRC to name a few. When interviewing a potential financial advisor, ask if they have a specialty and certification.

Do I need to find a financial advisor in my state?

It is not necessary to work with a financial advisor in your state of residence. However, the advisor should be securities and insurance licensed in your state of residence.

How much should I be saving for retirement based on my lifestyle?

A financial advisor can develop a financial plan that will answer this question in addition to, how much income will my savings generate at retirement, will I run out of money in retirement, how do I deal with a stock market correction in retirement, how does inflation impact my retirement plan, when do I start taking social security payments, etc.

Are my current retirement accounts optimized for growth?

A financial advisor, will help determine your risk tolerance based on many factors that include, your investment time horizon, current age, emotional risk tolerance to market fluctuations, projected retirement age, etc. Once these important areas are defined, then the appropriate growth allocation can be defined.