Best Financial Advisors in Folsom

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.
  

• How does an advisor become a certified financial planner (CFP) in Folsom?

  A financial advisor in Folsom with a CFP certification has to complete the comprehensive training required by the CFP Board, covering topics like investment planning and risk management. To become a CFP, one must work in the industry for 4,000 to 6,000 hours and pass a six-hour exam. CFPs also undergo continuing education. As fiduciaries, they must prioritize clients' best interests and uphold professional conduct and ethical standards.

• What affects your credit score in Folsom?

  Your credit score is based on five elements. Comprising 35% of your score, payment history is the biggest influencer. This pertains to your consistency in making payments on time. Your utilization of credit comes next at 30%. You might get a lower score if you have a habit of maxing out your credit in Folsom. Your credit history length, credit mix, and new applications make up 15%, 10%, and 10% of your score, respectively.

• How can you get out of debt in Folsom?

  The first step in getting out of debt is finding out the total amount you owe. Note the balance, tax deduction status, and interest rate on each debt so you can consider which to prioritize. Follow a strict budget, and do not add to your existing debts. Also, put your cards where you won’t be tempted to use them, and ask your creditors if they could put you on a payment plan. You can obtain tailored guidance from a Folsom financial advisor.

• Do employees in Folsom need a wealth manager?

  Employees in Folsom might need a wealth manager’s specialized guidance when it comes to equity-based compensation. Among the city’s major employers are tech companies, including Intel, PowerSchool, and Micron Technology. These companies can provide workers with restricted stock units, stock options, cash-deferred bonus plans, employee stock purchase plans, and performance shares. Equity compensation could be complicated to manage since it comes with tax and regulatory concerns.

• You just received a large inheritance in Folsom. How can you stay financially stable?

  The first thing you can do—or in this case, not do—is to avoid making emotional decisions. Unless you have urgent expenses, leave your inheritance untouched. This will protect you from making bad purchases or investments. Seek professional advice in Folsom about safekeeping your money. Acquiring an inheritance is also a good time to reevaluate and update the various components of your financial plan. Consider whether you need strategies to reduce taxes or additional insurance coverage for new properties.

• 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.