Best Financial Advisors in Los Angeles

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.
  

• Do you need a new financial plan after a life transition in Los Angeles?

  Life transitions usually happen to individuals and business owners in Los Angeles. If you have experienced sudden changes in your life circumstances, including a downturn in business or the death of a loved one, you might need a new financial plan. Your financial planner will create short-term and long-term financial projections suited to your goals. He or she will determine your post-event financial objectives and evaluate your insurance, real estate holdings, and wealth transfer strategies.

• Why is financial planning during a divorce in Los Angeles important?

  It is important to seek financial planning services in Los Angeles during a divorce because it can help you look out for your financial interests. A divorce process involves child support and alimony that always come with financial matters. Most of the time, families dealing with divorce face financial problems. Having a financial planner will help you become prepared for your life's next chapter after a divorce.

• How can you create a legacy of charitable giving in Los Angeles?

  You can create a legacy of charitable giving in Los Angeles by establishing a private foundation. You should be in charge of the organization's operation, accounting, grant-making, and investment management. You should also be willing to sponsor charitable events. Your organization must be operated exclusively for charitable purposes for it to become tax-exempt.

• When do incentive stock options and non-qualified stock options in Los Angeles become taxable?

  In Los Angeles, incentive stock options are usually obtained by employees. Employees exercising ISOs only pay taxes when they sell their shares. Capital gains instead of ordinary income are taxable if an employee holds the shares for at least one full year after vesting and two years after the grant date. While on the other hand, non-qualified stock options are taxed even if you have an ordinary income rate. Regardless of whether your keep your stock options or sell them, you should pay for their taxes.

• How do you manage your cash in Los Angeles?

  Cash management refers to the handling and using, organization, and tracking of your money. In Los Angeles, it is important to manage your cash to achieve financial freedom. You can manage your cash by establishing proper accounts to facilitate all the outflows and inflows of your money. You should also analyze or review your income and expenses.

• 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.