Best Financial Advisors in Phoenix

Frequently Asked Questions

• Introduction

  There are many titles for financial professionals, so it's challenging to track what each one means. A financial advisor is probably the term you've heard most often. Financial advisor is a broad term for a professional who helps individuals or companies manage their finances, including investment choices. There are over 100 certifications that financial advisors can obtain.
  

  • Financial planners, wealth managers, and investment advisors are all financial advisors with different focus areas.
  • A financial planner helps an individual or a company make a plan to achieve long-term financial goals.
  • A wealth manager helps individuals maintain their wealth through various disciplines and services, such as taxes, estate planning, and investment advice.
  • An investment advisor offers investment advice and recommendations to individuals or organizations.
    

  There’s a misconception that you have to be extremely wealthy to use a financial advisor. In reality, they can be beneficial for people from any income level. Keep reading to find answers to the most commonly asked questions about financial advisors, so you know which type can fit your specific needs.
  

• Why would Phoenix residents hire a fee-only financial planner?

  Fee-only financial advisors in Phoenix prioritize their clients' needs by not receiving commissions or other incentives, thereby minimizing conflicts of interest. This approach enables them to offer a higher level of personalized attention, as there is no motivation to promote products that may not align with a client's specific circumstances. On the other hand, commission-based advisors primarily focus on selling products to their clients.

• How are financial advisory fees determined in Phoenix?

  In Phoenix, financial advisory fees are typically calculated based on the total investment assets under management or through a flat annual fee structure, which is reviewed periodically. Advisors usually have a predetermined fee schedule that guides the amount they charge their clients. Some advisors may require new clients to pay a separate fixed fee ranging from $2,500 to $15,000 because they usually engage in a comprehensive financial planning process.

• What will the process of becoming a financial management client look like in Phoenix?

  To initiate the process, the first step entails arranging an initial consultation with a financial planner based in Phoenix. Following this meeting, a subsequent consultation can be arranged to delve into the client's financial objectives and engage in discussions concerning diverse aspects of financial management, such as portfolio management.

• What are tha advantages of working with local financial advisors in Phoenix?

  By working with financial advisors based in Phoenix, clients gain access to the expertise of professionals who are not detached but rather integrated into the local community. These specialists possess an in-depth understanding of Arizona's tax framework, including the nuances of the state's flat tax. Moreover, local financial advisors are well-versed in the ways in which the local economy can influence and affect the assets of their clients.

• What are the major differences between financial planners and retirement planners in Phoenix?

  Financial planners in Phoenix concentrate on the financial circumstances of their clients, while retirement planners specifically address the unique requirements associated with retirement. These cover essential aspects like Social Security planning, Medicare considerations, and devising strategies for retirement income. Furthermore, financial planning entails a long-term perspective, while retirement planning is focused on a shorter timeframe, typically spanning the five to 15 years leading up to and during retirement.

• Are financial advisors worth it?

  Whether or not a financial advisor is worth it depends on your personal situation. If your finances are fairly straightforward, then you may be better off handling it on your own. But if you have substantial assets or a complex investment portfolio, then hiring someone to handle it for you can be well worth the cost.