Best Financial Advisors in Shawnee

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.
  

• How are financial advisors compensated in Shawnee?

  Financial advisors in Shawnee are compensated through the following forms of payment structures:

  • A flat rate according to the specific services provided.
  • A per-hour consultancy rate.
  • Management fee based on a percentage of assets under management, usually 1% to 2% per year.
  • Commission-based on the sold financial products such as investments and insurance.

• How do you conduct a background investigation on a Shawnee financial advisor?

  Background information about Shawnee financial advisors, including their professional licenses, employment history, specialization affiliations, registration, certification, and disciplinary record, is accessible on these online search database:

  • Securities and Exchange Commission's Investment Adviser Public Disclosure.
  • Kansas Insurance Department.
  • Financial Industry Regulatory Authority's BrokerCheck.
  • Certified Financial Planner Board.
  • National Association of Personal Financial Advisors.

• Can you exceed Roth IRA contribution limits in Shawnee?

  Yes, but your excess contributions to your Shawnee Roth IRA account will be subject to an annual 6% excise tax. The contribution limits for a Roth IRA in 2023 are (a) $228,000 if you are filing jointly as a married or as a qualified widow(er); (b) $153,000 if you are single, head of household, or married but filing separately and did not live with their spouse during the year; (c) and $10,000 if you are married but filing separately and lived together during the year.

• How can you estimate when your money will double when investing in Shawnee?

  The rule of 72 is a quick way for Shawnee investors to estimate how long it will take for their money to double, assuming a constant annual rate of return. To calculate, simply divide 72 by the fixed rate of return. For instance, if the investment's average annual return is 8%, dividing 72 by 8 yields 12 years as the time it will take for the initial investment to double in value.

• Is your pension affected by fluctuating rates in Shawnee?

  Yes. A higher interest rate reduces lump sum pension payments, whereas a lower rate increases payouts in Shawnee. Pension annuities, on the other hand, are calculated using parameters like age, years of service, and income, and the recipient generally receives the same monthly payment regardless of interest rate fluctuations. Regular payments are guaranteed, but beneficiaries are vulnerable to inflation due to the lack of cost-of-living adjustments.

• 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.