Best Financial Advisors in Terre Haute

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 conditions must Terre Haute homeowners meet to be eligible for capital gains tax on a house sale?

  Homeowners in Terre Haute should have owned and lived in the house put up for sale for at least two years within the last five years to qualify for capital gains tax. When a married couple sells their house, they are not taxed on the first $500,000 of the profit; for single homeowners, the first $250,000 of their home sale profit is also tax-free.

• Are first-time home buyers in Terre Haute allowed to withdraw funds from their IRA account to purchase their first house?

  The IRS states that first-time homebuyers in Terre Haute can utilize up to $10,000 from their IRA account to help pay for their purchase. They may also use the same amount from their IRA accounts to buy a new house, provided they haven't owned one in the last two years.

• Can creditors in Terre Haute get money from a debtor's retirement funds?

  Creditors in Terre Haute cannot get money from a debtor's retirement funds unless the assets are used as collateral for a loan. Under the Employee Retirement Income Security Act, retirement plans, such as Individual Retirement Accounts, pension plans, and 401k, are protected from creditors' claims in the event of bankruptcy.

• Can grandparents contribute to their grandchild's college plan in Terre Haute?

  Yes, grandparents in Terre Haute can contribute to a child's 529 college plan. A single contributing grandparent can pitch in a maximum of $85,000, while a married couple can deposit up to $170,000 to the plan within five years. Subsequent contributions must be made after five years of the last contribution if the maximum amount has been fully utilized.

• What are the eligibility criteria for Terre Haute residents to qualify for a reverse mortgage?

  Terre Haute residents 62 years or older who live in their own homes and pay property taxes and other expenses associated with maintaining a property can qualify for a reverse mortgage. Applicants of reverse mortgage must have resided in their home for at least two years or 730 days.

• 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.