Best Financial Advisors in Waterbury

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.
  

• Why is it advisable to undergo financial advising in Waterbury when considering a divorce?

  When considering a divorce in Waterbury it is preferable to undergo financial advising because it is a change in circumstances that drastically alters one's money situation. While Connecticut is not a community property state, there are still lots of issues when it comes to the care of children and the equitable distribution of liabilities and assets.

• If diversification in Waterbury does not eliminate risk, why must investors still diversify instead of focusing on certain strong sectors?

  Diversification in Waterbury is preferable to focusing on certain strong sectors because there is no guarantee that market trends will remain the same. What is strong today can deteriorate in the future, and having a wide portfolio reduces the odds that a crash in any single field will break the individual's entire basket.

• Why should a testator in Waterbury consider a trust when planning an estate?

  A testator in Waterbury should consider supplementing a will with a trust because the latter is a juridical entity that lets the individual avoid probate while managing properties through a fiduciary party. Since the assets transfer ownership to a beneficiary upon death, there is no estate tax due though there could be income taxes for the appreciation of the trust itself.

• Is a profitable year sufficient to guarantee that a company in Waterbury will release dividends?

  No, a profitable year does not guarantee that a company in Waterbury will release dividends. Corporations may distribute earnings to stockholders if they experience a profit, but the former reserve the right to reinvest the earnings to further grow the venture instead of releasing cash. In these cases, a person may sell the shares if the money is really needed, but this will also remove the right to receive dividends.

• Should persons in Waterbury place their trust in robo advisors instead of human finance professionals?

  No, since robo advisors in Waterbury are inferior to human finance professionals because the latter are needed to fully personalize and consider the various components of custom plans. The software has not reached the point where it could determine tax minimization strategies or the comparative merits of competing investment products while keeping the investor's unique situation in mind.

• 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.