Best Financial Advisors in Louisville

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 some of the questions you should ask before hiring a financial advisor in Louisville?

  Ask about the financial advisor's usual customers, pay structure, and mode of communication with clients. You may also inquire if they have a fiduciary duty and can get commissions from the products clients purchase. Information such as how the advisor chooses or recommends financial products and investments must also be acquired. Finally, ask questions specific to your situation, like if you are a small business owner, millennial, or divorcee in Louisville.

• What are the advantages of investing in precious metals IRA in Louisville?

  Getting a precious metals IRA in Louisville is an excellent strategy to diversify a retirement portfolio and hedge against inflation. These IRAs also come with tax advantages and allow individuals to set up retirement savings reliably and securely. With the help of a suitable custodian, individuals have the opportunity to choose from a wide variety of products and competitive fees.

• How is the financial planning process done in Louisville?

  Generally, the financial planning process starts with goal assessment and financial information gathering. The Louisville individual's goals such as asset transition, retirement planning, and investing will be analyzed. Additionally, financial information like income, tax returns, expenses, and liabilities will be collected. A type of software will be used to get the individual's financial picture and formulate a plan that fits current and future goals.

• Can the KY Saves 529 be a good investment for families in Louisville?

  The KY Saves 529 is a good investment since it offers families in Louisville a chance to save up for a college education along with several advantages. Some of these advantages are zero enrollment fees, tax-deferred gains, attractive investment alternatives, and ample contribution limits. State residents can have benefits such as in-state tuition should a beneficiary move out of state. The KY Saves 529 is an initiative of the Kentucky Higher Education Assistance Authority.

• What are employer-sponsored plans in Louisville?

  There are usually two categories of employer-sponsored plans in Louisville: (1) defined benefit plan and (2) defined contribution plan. The first one is more commonly known as pension plans. It offers specific monthly benefits upon retirement and is sponsored by the employer. The second category is otherwise known as the 401(k) plan and is usually paid for by both the employee and employer. During retirement, the plan's account balance is paid out.

• 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.