Best Financial Advisors in Delray Beach

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 does it mean if your financial advisor in Delray Beach works as a fiduciary?

  If your financial advisor operates as a fiduciary, it means they are legally mandated to provide services and advice that are in your best interest. Fiduciary financial advisors in Delray Beach are also mandated to avoid conflicts of interests. This is why they do not earn commissions from financial products they recommend to the client. The products endorsed would be based on what’s best for the client’s financial goals instead of what would earn them the most compensation.

• Do you stop working with your Delray Beach financial advisor once your financial plan is complete?

  Not necessarily. It’s your choice if you want to end the relationship and work on achieving the goals of your financial plan on your own. Some financial advisors in Delray Beach also offer consultancy services, which allow you to work with them only when needed. However, it is recommended that you meet with your advisor periodically to review your financial plan. This helps ensure your plan is still on track and gets updated to accommodate life changes.

• Do you need a financial plan if you’re still 10 years away from retiring in Delray Beach?

  It is recommended to establish a financial plan at least 10 years prior to your target retirement age. Having a clear-cut financial roadmap helps keep you on track to your retirement goals. Financial planning involves evaluating your income flow, the amount you need for a comfortable retirement in Delray Beach, and how much you need to save and invest. It also avoids the risk of having to come out of retirement because your money ran out.

• What’s the difference between fee-only and fee-based financial advisors in Delray Beach?

  The difference has got to do with the way the advisors are compensated. The compensation of fee-only financial advisors comes solely from the fees paid by their clients; they do not receive commissions or payment for the products they recommend. On the other hand, fee-based financial advisors get compensated by their clients and receive commissions from insurance and investment products. You can expect less sales pitching from fee-only financial advisors in Delray Beach.

• How can a financial advisor help you after your divorce in Delray Beach?

  A divorce can drastically change your financial situation, particularly if it was your ex-spouse who managed the finances during marriage. A Delray Beach financial advisor can assess your current money situation and establish a new financial plan to achieve your post-divorce goals. Depending on what you need, your advisor can help create a spending plan and an investment strategy, as well as learn ways to pay your bills.

• 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.