Best Financial Advisors in New Orleans

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.
  

• Why is diversification a critical component of a good financial plan in New Orleans?

  Diversification is a critical component of a good financial plan in New Orleans because it is very risky to put all of one's investments in a limited number of products and areas. If a particular sector of the market crashes and that's where all of one's bets are placed, years of hard work and toil can vanish in an instant.

• How do bonds differ from stocks as investment instruments in New Orleans?

  In New Orleans, bonds are documents that are evidence of a debt that a company owes to the person who holds it. Stocks are proof of partial ownership in a corporation. Bonds are issued whenever a business wants to obtain funding from the general public but does not want to accumulate new shareholders who would dilute the value of every share of stock.

• Why is it wise to make an estate plan in New Orleans even if death is far away?

  One should make an estate plan in New Orleans because death is not the only reason to make one. These documents also outline the steps to take when a person becomes physically or mentally incapable of administering personal and financial affairs. Issues like where to invest money and which parties to trust with cash are covered in a good estate plan.

• What questions should one in New Orleans keep in mind when plotting a retirement plan?

  When plotting a retirement plan in New Orleans a resident must take note of what are the long-term care and health issues likely to be faced late in life. It is advisable to check how much money one has and if it will last through retirement. Social Security matters are also vital and vary depending on how soon a person stops working.

• Is it advisable to buy long-term care insurance in New Orleans instead of relying on Medicare?

  Though long-term care insurance is complicated in New Orleans, it is advisable to get it instead of relying solely on Medicare to save on hassles later on. The latter product generally does not cover long-term health issues, and the costs associated with aging have to be paid straight from one's pocket.

• 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.