Best Financial Advisors in Skokie

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 benefits of managing your investments in Skokie?

  Investment management can help you identify your investment opportunities and analyze the financial market in Skokie. Your investment manager can assist you in managing risks in an investment portfolio to reduce volatility, as well as help you minimize tax liabilities by reducing short- and long-term capital gains. Managing your investments can also boost your income.

• Can your age affect asset allocation in Skokie?

  Yes. Age can affect asset allocation in Skokie. There are several studies on how investment choices change with age. The earlier you begin investing, the more risk you are allowed. For example, if you are already 50 years old, the exposure to risk should be minimized. Your bonds and assets should be a bigger part of your investing portfolio.

• What should you consider before deferring your student loans in Skokie?

  Before deferring your student loans in Skokie, you need to consider an income-driven repayment plan. This may be a better option than deferring your loans. You just need to recertify your income with your student loan service provider so they can recompute your monthly payment into a more manageable amount. You should also assess your benefits and determine the downside because most of the time, deferment interest continues to accumulate.

• Why long-term care should be a part of your financial plan in Skokie?

  Long-term care should be a part of your financial plan in Skokie to prevent financial problems in the future. You should understand that when you age and no longer can work, you still have some bills to pay. If your family members cannot take care of you, you might consider availing of caregiving services, which are often costly. Aside from caregiving services, you also have small expenses like prescriptions and groceries.

• If you are a business owner in Skokie and only have fewer than 25 employees, can you apply for Safe Harbor 401(k) plan?

  Yes. You can apply for Safe Harbor 401(k) plan in Skokie if you have fewer than 25 employees. The plan allows you and your employees to maximize tax-deferred contributions. As the employer, you need to either match your employees' contributions or provide a non-elective contribution. Your total contributions may not exceed 100% of an employee's income.

• 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.