Best Financial Advisors in Bowling Green

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 much of your assets should you invest in a company in Bowling Green?

  Some financial advisors and planners in Bowling Green would tell you to invest 5% or less of your portfolio in one company. Investors are generally advised to avoid concentrating too much of their assets on a single investment because it is risky. However, this should be treated on a case-to-case basis. Drastically reducing stocks may also have disadvantages, such as increased tax bills. A financial advisor can come up with a plan to deconcentrate stocks or manage risk.

• How can you fund your child’s college education in Bowling Green?

  Consider taking out a 529 plan. This investment is specifically designed to fund higher education and grows your money at a rate of 3-5%. Moreover, 529 plans are tax-free. Bowling Green is a college town housing Western Kentucky University. Financial advisors in the area can assist you in finding a plan for the security of your child’s education.

• What can Bowling Green college students do to better manage their finances?

  A college student in Bowling Green should think about ways to budget their allowance in order to make wise purchases and avoid overspending. They can open a savings account and try to set aside extra money toward educational expenses. Students can also find out if their college or university offers free financial counseling. They might be able to learn practical tips to manage their money, as well as get equipped on topics like credit and retirement before entering the workforce.

• What can a certified divorce financial analyst (CDFA) in Bowling Green do for you?

  A CDFA can project what will happen to your properties in Bowling Green post-division, both in the short and long term. They can address your concerns about a divorce’s implications on your life, such as adjusting insurance and retirement plans, gauging investment returns, and weighing options should you lose the matrimonial home. Additionally, a CDFA can contribute valuable financial data to your divorce case, serving as an expert witness or helping resolve tax problems.

• Should you try the shoebox strategy to boost your HSA returns in Bowling Green?

  Yes, but remember you need discipline in personal accounting and cash management. The shoebox strategy involves paying your Bowling Green medical expenses out-of-pocket and leaving your HSA account alone while its investments grow. You must keep the receipts in a safe place—like a shoebox—then make a single tax-free withdrawal, ideally during your retirement. If you do not have the funds to simultaneously cover your expenses and contribute to your HSA plan, this strategy might not work for you.

• 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.