Question 1

What are the different types of trusts available in Simi Valley?

Accepted Answer

The different types of trusts available in Simi Valley are revocable trusts, irrevocable trusts, living trusts, and testamentary trusts. Revocable trusts can be modified after they are set up, while irrevocable trusts cannot be modified after they are created. Living trusts can either be revocable or irrevocable and are set up while the trustor is alive, while testamentary trusts are created as a part of a last will and testament. Other types of trusts include charitable remainder trusts and special needs trusts, such as first-party and third-party special needs trusts.

Question 2

Who needs estate planning in Simi Valley?

Accepted Answer

Everyone needs estate planning in Simi Valley, especially individuals who desire to distribute their estate after their death in conformity with their wishes and those who possess assets that make them liable to high estate taxes. Other people who need estate planning are parents with children who may require responsible financial assistance after their death.

Question 3

In Simi Valley, what are the main types of buy-sell agreements?

Accepted Answer

The main types of buy-sell agreements in Simi Valley are the stock-redemption agreement and the cross-purchase agreement. A stock-redemption agreement refers to an agreement between a business and its employees or shareholders where the business agrees to repurchase the stocks from the owners. On the other hand, a cross-purchase agreement involves the transfer of ownership shares between deceased employees and other partners within the company.

Question 4

What are the advantages of having an investment advisor in Simi Valley?

Accepted Answer

The advantages of having an investment advisor include receiving general investment advice and fiduciary guidance and oversight and reducing complications regarding investment options and costs. Another benefit of having an investment advisor in Simi Valley is that it helps one gain knowledge and understanding of different types of investment and retirement vehicles available in the area.

Question 5

What does a Roth conversion involve in Simi Valley?

Accepted Answer

A Roth conversion in Simi Valley involves converting from a traditional individual retirement (IRA) account to a Roth IRA account. In other words, it occurs when you move your retirement funds from your traditional IRA account and place them into a Roth IRA account. One of the primary reasons for IRA conversion is that it allows you to enjoy tax-free income in retirement.

Question 6

Are financial advisors worth it?

Accepted Answer

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.

Question 7

What does a financial advisor do?

Accepted Answer

Financial advisors can have many types of specialties. Generally, a financial advisor advises on or helps to execute a financial plan. Some examples include assisting people with getting out of debt, building out an investment portfolio, and handling taxes.

Question 8

How much money do I need to work with a financial advisor?

Accepted Answer

There’s no specific income level you need in order to work with a financial advisor, but there may be a minimum investment amount for certain types of services. Some financial advisors won’t manage your money unless you have $100,000 or more to invest, but this isn’t the case with financial coaches or robo-advisors.

Question 9

What does a financial coach do?

Accepted Answer

Financial coaches focus on improving your financial literacy and money management skills. For example, they can help you figure out how to pay down your student loans or decide how much money to put away for retirement. They usually charge by the hour and don’t offer asset management services or investment advice.

Question 10

When should I use a financial advisor vs. doing it myself?

Accepted Answer

Smart money management can give you freedom and comfort. Being responsible with your money makes it possible to meet goals and pay for major expenses. A financial advisor is trained and can offer you expertise that would otherwise take years to learn. They know how to save you money and make it go further.

Question 11

How do I know if my financial advisor is trustworthy?

Accepted Answer

Because financial advisors aren’t licensed or regulated, it’s up to the client to make that determination for themselves. However, if your advisor is a fiduciary, that means they’re legally bound to act in your best interest. Some types of advisors, including Certified Financial Professionals (CFPs), are held to fiduciary standards.

Question 12

What\'s the difference between a financial advisor and a financial planner?

Accepted Answer

The term financial advisor is a broad phrase that encapsulates many specialties, including financial planner. It's similar to how doctor applies to different physicians, while a cardiologist is a specialty doctor. A financial planner helps their client plan to achieve long-term financial goals, such as saving for a house or retirement.

Question 13

What is a financial consultant?

Accepted Answer

A financial consultant and a financial advisor are essentially the same. In recent years, financial consultant has become a less popular term, with financial advisor being much more common. Sometimes, the financial professional may opt for the term consultant when offering services to a business rather than an individual.

Question 14

Are financial advisor fees tax deductible?

Accepted Answer

Until 2018, financial advisor fees were tax deductible as a miscellaneous expense. However, the Tax Cuts and Jobs Act elimited that deduction until at least 2025.

Question 15

What is a robo-advisor?

Accepted Answer

A robo-advisor is essentially an algorithm that manages your investment portfolio for you. Because their services are automated, you’ll pay less than you would for a human advisor — often between 0.25% and 0.50%. They don’t require large initial investments either, making them a popular choice for entry-level investors. However, you won’t get the same level of advice that you would get from a personal financial advisor.

Question 16

What makes someone a fiduciary?

Accepted Answer

Fiduciary is a legal term for a person who has a legal or ethical responsibility to act in your best interests. For example, a trustee and a beneficiary. A financial advisor may have a fiduciary obligation to make financial choices that are best for you, even if it means they earn less in commissions or fees.

Question 17

Should your financial advisor be a fiduciary?

Accepted Answer

It’s important to understand that only some — not all — financial advisors have a fiduciary obligation to their clients. Always ask your financial advisor if they’re bound by fiduciary duty. If not, it’s possible that they’ll push products or services that earn them the highest commission, not necessarily what’s best for you. Opt for a financial advisor bound by fiduciary duty whenever possible.

Question 18

How often should I meet with my financial advisor?

Accepted Answer

After your initial meeting, you may only need to check in with your financial advisor on a quarterly or annual basis. Ask them in advance how often you can expect to hear from them, and whether they offer in-person, phone, or virtual meetings.

Question 19

Can my financial planner help with taxes?

Accepted Answer

Financial advisors aren’t necessarily accountants or tax preparers, so don’t expect them to prepare your taxes for you. However, they may be able to provide tax-related advice to help you optimize your returns and deductions. If you need an advisor who can file your taxes, look for one who is also a CPA (Certified Public Accountant).

Question 20

Do I need a financial advisor?

Accepted Answer

Ask yourself if a financial advisor can fill a need or solve a problem you can’t easily handle on your own. They can be helpful in a wide variety of ways, such as building budgets or financial plans, finding ways to save money on taxes, creating an investment portfolio, or offering investment advice.

Question 21

How do financial advisors get paid?

Accepted Answer

Clients pay to work with a financial advisor whether it’s through fees, commissions, or salaries. If they’re paid by client fees or commissions, their salary is tied to how much business they bring in. The harder they work, the more they make. In comparison, a salaried employee is guaranteed their wage no matter how many clients they have.

Question 22

What experience should I look for in a financial advisor?

Accepted Answer

If you have specific goals or a unique financial situation, look for a financial advisor with expertise in that area. For example, some financial advisors specialize in working with millennials or focus on socially responsible investing.

Question 23

Should I hire a financial advisor before buying a house?

Accepted Answer

While not always necessary, a financial advisor could help you decide how large of a mortgage to apply for, how much money to put down, and how to balance the purchase with other savings and investment goals.

Question 24

How much does a financial advisor cost?

Accepted Answer

A financial advisor’s costs depend on their fee structure. Some advisors charge a fee — either hourly or a percentage of the client assets under management. Another common option is to charge a commission on the products sold or investments made.

Question 25

How many financial advisors are there in the U.S.?

Accepted Answer

According to the U.S. Bureau of Labor Statistics, it’s estimated that there are 218,050 financial advisors. California is the state with the highest employment of financial advisors across the nation.

Question 26

Do banks offer financial advisors?

Accepted Answer

Yes, many banks have financial advisors on staff. Your bank may also offer incentives to work with their financial advisors, such as lower fees or free accounts. However, it's important to note that many of the bank's financial advisors don't have a fiduciary obligation and might prioritize the bank's products above all else. There is a cost when working with your bank's financial advisor.

Question 27

Should I hire a wealth manager?

Accepted Answer

A wealth manager can help offer complex financial planning services, including tax guidance, estate planning, and legal assistance. While you don't have to be a high-income earner to benefit from a financial advisor, a wealth manager is typically for those that have a high net worth. However, many people build wealth and need a wealth manager later on in life.

Question 28

Is wealth management worth it?

Accepted Answer

Wealth management is typically worth it for those who need help with multiple endeavors or comprehensive financial situations, such as charitable contributions or investment portfolio management, or want to protect their assets. A wealth manager can also offer you guidance if you’ve been neglecting your finances or making poor judgements.

Question 29

How can you tell if a financial advisor is bad?

Accepted Answer

Your relationship with your financial advisor is a very personal one, as you’re trusting them with your wealth and future. Some general signs that your financial advisor is bad include:

They can’t answer your financial questions
You have worked with them for a while but haven’t seen a financial improvement
They don’t provide you with progress reports
They don’t check in with you

Question 30

What do you need to be a financial advisor?

Accepted Answer

As mentioned, there are over 100 types of certifications for financial advisors. The training or experience you need will depend on which specialty you want to pursue. Generally, financial advisors need to have:

A Bachelor’s degree
A General Securities Representative license (Series 7 license)
A Certified Financial Planner (CFP) certification isn’t mandatory but is often preferred

Question 31

Where do financial advisors work?

Accepted Answer

Where a financial advisor works will depend on what type of financial advisor they are. Financial advisors can work at a variety of places, including:

Securities and commodity brokers
A bank
A credit union
Independently
Insurance companies
Financial investment firms
Small investment advisory firms

Question 32

How much do financial advisors make?

Accepted Answer

In 2019, the national average salary for a financial advisor was $87,850. However, it’s important to note the average salary varies from state to state and the different focus areas — an investment advisor may make a lot more than a financial planner. Lastly, salary can depend on how the individual is getting paid. Financial advisors can be paid by client fees, commissions, or salaries.

Best Financial Advisors in Simi Valley

We did the research for you!

Financial Advisors FAQs

SmartAdvisor by SmartAsset

Why choose this provider?

Reputation:

Professionalism:

Price: Free Consultation

Why choose this provider?

Professionalism:

Price: Free booking service | Call 848.Book.Pro!

Why choose this provider?

Why choose this provider?

Professionalism:

Why choose this provider?

Professionalism:

Why choose this provider?

Professionalism:

Frequently Asked Questions

Introduction

What are the different types of trusts available in Simi Valley?

Who needs estate planning in Simi Valley?

In Simi Valley, what are the main types of buy-sell agreements?

What are the advantages of having an investment advisor in Simi Valley?

What does a Roth conversion involve in Simi Valley?

Are financial advisors worth it?