Best Financial Advisors in Metairie

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 is required minimum distribution, and how will your beneficiaries in Metairie be affected by it?

  Required minimum distributions (RMDs) are the minimum annual withdrawals from your retirement accounts in Metiairie once you reach 72 years old. If your spouse is the beneficiary and is not within the minimum age for withdrawal, they can delay receiving distributions by transferring an inherited IRA or employee plan into an IRA under their name. Additionally, non-spouse beneficiaries may choose to extend payment periods beyond their life expectancy, and trust beneficiaries' payouts may depend on the oldest beneficiary's age.

• How do you ensure that your charity donations from your required minimum distributions are tax-free if you are a low-income earner in Metairie?

  Qualified charity donations from low-income individuals in Metairie come with a variety of tax incentives, including deductions, exemptions, and credits that may either be reduced or completely removed. While different IRA distributors follow various guidelines on donation delivery, the rule of thumb is no more than $100,000 worth of annual tax-free donations. This means you can support many organizations as long as you keep the donations to a maximum of $100,000.

• How are financial advisors different from financial planners in Metairie?

  Financial advisors are professionals who manage people's money, while financial planners help individuals and organizations with their long-term financial goals. Financial advisors in Metairie may include brokers, investment managers, bankers, and insurance agents. While both are required to pass examinations conducted by the Financial Industry Regulatory Authority (FINRA), they are not certified to the same level. Additionally, financial advisors are mandated to hold a FINRA Series 65 license if they plan to work with the public.

• How can a financial advisor assist women in Metairie who are going through a divorce?

  There are specific financial advisors in Metairie who specialize in divorce matters. Certified Divorce Financial Analysts (CDFAs) assist women in their financial decisions surrounding divorce and how it impacts their lives in the long run. They work with attorneys, mediators, and therapists as additional support and representation to help make the process simpler and equitable to both parties. CFDAs help them divide assets and fulfill their financial goals as a newly single mother.

• What is a bear market, and how should investors in Metairie handle it?

  A bear market is an extended decline in investment prices, which happens when the broad market index declines by 20% or more from its most recent high. This is usually caused by key economic signals, such as inflation, interest rates, and wage growth. Investors in Metairie should weigh the odds and invest in those with higher probabilities. Additionally, they should defend their portfolios by putting money into less volatile investments and income-producing equities.

• 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.