Best Financial Advisors in Santa Ana

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 financial advisors work with people with fluctuating incomes like entertainers and athletes in Santa Ana?

  Financial advisors work with people with fluctuating incomes like entertainers and athletes. In fact, having a financial advisor would benefit Santa Ana residents with inconsistent earnings or those with limited time to earn money by helping them develop financial plans. These can accommodate fluctuations during low-income periods and maximize income influxes. Doing so will also help make their wealth last in case the client’s career ends due to aging or an injury.

• What questions should you ask a financial advisor before letting them handle your investments in Santa Ana?

  First, determine the services you want and the type of advisor you can get along with as you will be working with them long-term. Questions you could ask the Santa Ana financial advisor include the following: - What are your credentials and licenses? - Any disciplinary actions filed with FINRA? - Will you be compensated by fee or commission-based? - What is your investment philosophy? - How do you evaluate risk tolerance and financial goals? - What kind of monitoring and reports will you provide?

• How are financial advisors paid in Santa Ana?

  Financial advisors work on various payment models or a combination of multiple models. According to 2023 data from the SEC, 96% of advisors are paid a percentage of the client’s portfolio under their management, while 49% are paid fixed fees. Only 3% work on commission and 33% of SEC-registered advisors charge hourly fees. You can negotiate a hybrid payment structure with your Santa Ana financial advisor, including a subscription arrangement if you only need periodical service.

• What does it mean if a Santa Ana financial advisor is “fee-based?”

  Generally, fee-based means the Santa Ana financial advisor's payment structure is a hybrid of commission and fee. The financial advisor will charge an hourly fee and collect a commission from the investments under their management. This is unlike a “fee-only” financial advisor who charges a flat fee regardless of the amount of assets to be managed.

• How do you know if a financial advisor operates as a fiduciary in Santa Ana?

  To find out if your Santa Ana financial advisor operates on a fiduciary standard, see if they are registered with the Financial Industry Regulatory Authority or the Securities and Exchange Commission. Financial advisors who have the credential Certified Financial Planner or CFP attached to their name are also fiduciaries. Not only are fiduciaries required to prioritize your best interests, but they are also obligated to inform you if working together will have a conflict of interest.

• 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.