Best Financial Advisors in Scottsdale

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.
  

• What is a "fee-only" financial advisor, and what are the advantages of hiring one in Scottsdale?

  A fee-only financial advisor assists individuals in enhancing their investment assets by developing strategies to help meet their financial objectives and life goals. The term "fee-only" indicates that the advisor's income source comes directly from clients through hourly fees, retainers, or a percentage of managed assets. In Scottsdale, this remuneration model encourages a service provision that is wholly client-oriented, thereby aligning the advisor's interests with those of the client.

• What is the concept of the "pay yourself first" strategy, and how can individuals in Scottsdale benefit from it?

  The "pay yourself first" strategy is a fundamental principle in solid financial management. It involves immediately diverting a portion of one's income into savings before covering other expenses. This technique can benefit individuals in Scottsdale by ensuring they always have funds for future needs or emergencies. It avoids the potential dilemma of having no money left to save after meeting all monthly bills, thereby encouraging a consistent savings habit and fostering financial security.

• What measures should individuals in Scottsdale take to ensure they are adequately preparing for retirement?

  Considering economic changes, inflation, and personal circumstances, individuals in Scottsdale should periodically reassess their retirement preparedness. As a guide, it's wise to allocate 15% of gross salary—after tax and before any employer matching—to a retirement fund like a 401(k) or IRA. Online pre-retirement calculators could also aid in understanding their preparation status and enhance their future retirement prospects.

• What are the advantages of hiring a Certified Financial Planner or CFP in Scottsdale?

  Individuals in Scottsdale looking to enhance their financial stability will find great value in engaging a Certified Financial Planner. These experts, distinguished by their exhaustive education, intense training, and commitment to ethical guidelines, exemplify excellence in the financial planning field. The assurance offered by the CFP® certification allows individuals to confide in their skills and moral conduct for proficient financial management, proving them essential allies in securing a sound financial future.

• Why should high-net-worth individuals in Scottsdale pursue estate planning, and what strategies are recommended?

  For high-net-worth individuals in Scottsdale, estate planning is necessary due to the dynamic nature of their assets and family circumstances. It's advisable to entrust a reliable power of attorney to handle tasks from mundane to significant, such as real estate transactions. Moreover, maximizing the annual exclusion gift is an effortless yet often overlooked strategy they should employ each year. In addition, sharing parts of their business could be a viable option, provided a precise business valuation is conducted.

• 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.