Best Financial Advisors in Aurora

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 are the potential benefits for individuals in Aurora who diversify their portfolio with alternative investments?

  Individuals in Aurora can gain enhanced portfolio performance and risk management from diversifying with alternative investments. Such investments, including private equity, hedge funds, and commodity pools, offer unique risk-return profiles distinct from conventional stocks and bonds. When skillfully integrated, these alternatives could yield similar returns as traditional portfolios but with reduced risks or, conversely, offer higher returns for the same level of risk.

• What rules must Aurora financial advisors follow for their services and fees?

  According to the Colorado Division of Securities' "Ongoing Financial Planning Guide," Aurora-based financial advisors must provide clear service deliverables and evidence of work completion and appropriately itemize these on invoices each time a client is charged. Additional requirements are triggered if advisors wish to charge more than $500 in fees six months or more in advance. To avoid these, post-service invoicing is suggested as an effective method.

• How can women in Aurora prepare financially for a potential divorce?

  Women in Aurora can strengthen their financial situation in the event of a divorce by active participation in joint finances, maintaining personal financial autonomy, and seeking expert guidance. They should understand their marital balance sheet and sustain personal credit and a separate bank account. Assistance from Certified Financial Planner professionals or Certified Divorce Financial Analysts is crucial during divorce proceedings. Post-divorce, hasty financial decisions should be avoided, and a revised financial plan should be drafted.

• What are the licensing requirements for investment advisers and their representatives operating in Aurora?

  Investment advisor firms in Aurora handling less than $100 million in managed assets must be licensed with the Colorado Division of Securities. Firms managing more than this amount solely answer the SEC but should also notify the Colorado Division of Securities. Investment Adviser Representatives in Aurora, regardless of their firm's assets, need a Colorado license to provide investment counsel to clients. The SEC does not license these individuals.

• What are the disclosure requirements for investment advisors and their representatives in Aurora?

  In Aurora, investment advisors and their representatives must provide a written disclosure statement to potential and existing clients receiving investment advisory services. This document must encompass details mandated by the state securities commissioner. The disclosure needs to align with the standards of the federal "Investment Advisers Act of 1940," its associated rules, and the stipulations of other states, unless contrary to the public interest or investor protection in the state.

• 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.