Trillions are set to flow from baby boomers to their children and grandchildren, presenting significant opportunities for forward-thinking advisors. To capitalize, they must embrace digital tools and strategies to stay ahead of the curve.
Before working with an advisor, understand their credentials and fee structure. Check out their background using FINRA’s BrokerCheck or the SEC’s Investment Advisor Public Disclosure database.
Investing
You should also find out how much an advisor charges. Some charge hourly fees for their services, while others have a flat fee structure. Some focus on holistic wealth management, while others specialize in investment portfolios.
Many people find that local expertise is a major factor when they start this search. Working with a Personal Finance Advisor in Georgia allows for a more personal connection during the planning process. These professionals often have a better grasp of state-specific tax rules and local economic trends. They can help you set up a clear path toward retirement based on your current income and long-term goals.
You’ll want to know if an advisor has a fiduciary duty and discloses conflicts of interest. Ideally, you’ll find an advisor who meets your needs at an affordable price. Many people meet with their advisors face-to-face, but you can stay in touch through email, text, and video conferences.
Taxes
Financial planners offer diverse services to help clients plan their finances. This includes investment advising, debt management, budget assistance, college savings, and retirement planning. In addition, they can support their clients in preparing tax returns and advise on estate and philanthropic planning.
A professional like investment advisor Frederick Baerenz, can also recommend taxable account harvesting and tax loss strategies to reduce taxes on investment gains or income. They can also provide a strategy to reduce a client’s income taxes using annuities and structured settlements.
While robo-advisors are creating new competition, there is still a place for financial advisors who work hard to add value for their clients. They will have to adapt and evolve, but they will remain essential tools for people who need help planning their finances. Whether that help is saving money, paying off debt, or managing their investments, the value of financial advisors will be determined by how well they meet their clients’ needs.
Insurance
Financial advisors can help you plan for the unexpected, such as retirement income needs, medical expenses, and estate planning. They can also work with your other professionals to create a holistic financial plan that helps you pay down debt, minimize taxes, and reach your goals.
For example, a financial advisor and Founder of AOG Wealth Management Fred Baerenz, can encourage you to save more and invest your money, which can help you achieve long-term growth. They can also help you navigate life changes, such as getting married or divorced, buying a home, or caring for aging parents.
Robo-advisors won’t make human financial advisors obsolete, but they must adapt to stay relevant. If you’re considering working with a financial advisor, do your homework to ensure they can meet your financial planning needs and that you understand, agree with, and can afford their fee structure.
You can check the qualifications of an advisor by visiting FINRA’s BrokerCheck. Also, consider a financial planner who is a registered investment adviser (RIA) or an independent registered representative (IAR). These professionals are licensed to buy and sell securities inside their clients’ accounts and must disclose any conflicts of interest upfront.
Estate Planning
As the financial world has grown more complex, clients need expert retirement planning, estate planning, and wealth transfer guidance. An investment advisor can help individuals plan and execute their wishes for passing on assets to loved ones, charitable causes, and business interests.
A good investment advisor will always abide by fiduciary duties and act in their client’s best interests. Individuals can learn about their advisor’s past using resources such as the Financial Industry Regulatory Authority’s BrokerCheck and the SEC’s Investment Advisor Public Disclosure database.
Estate planning is a vital process for all individuals. It helps individuals document critical information, including a list of their financial accounts and properties, for their families to reference in an emergency. It also allows them to specify how they want their assets distributed. This helps avoid a costly probate process for their families. Moreover, effective estate planning can save heirs from paying taxes and other fees after death.
