Best Financial Advisors in Springfield

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.
  

• In Springfield, what things should you discuss with financial advisors during follow-up consultations?

  In Springfield, during follow-up consultations or mid-year check-ins, you should focus on reviewing how much progress you've made towards the financial goals you initially set with your financial advisors, such as retirement plans, investing objectives, and debt management strategies. You should work with your advisor to course-correct any errant factors that came up between creating your financial plan and the current date and discuss possible future outcomes concerning your budget and investments.

• Are donations to charitable crowdfunding efforts tax deductible in Springfield?

  Generally, donations to charitable crowdfunding efforts, such as donation drives on social media or dedicated websites, are tax deductible in and around Springfield. You must ensure that the crowdfunding effort you are donating to is a charity recognized by the IRS, which you can do using the government entity's online database.

• In Springfield, what are some of the things you need to know before you start investing?

  In Springfield, financial advisors would tell you to avoid waiting for favorable market conditions before investing and instead regularly invest in a broad or diversified portfolio of assets to minimize risk while still getting returns. If you are a full-time employee, it is also suggested that you enroll in your company's retirement or pension plan because it is generally a low-risk investment with employee tax advantages.

• At what age should you plan for your retirement finances in Springfield?

  There is no one-size-fits-all ideal age to start planning for retirement finances in Springfield, but there are advantages to investing in your retirement at an earlier age. If you start planning for your retirement in your 20s, you can invest aggressively because uncertain market conditions have minimal impact on your finances due to their long-term nature. Generally, you also have fewer financial obligations at an earlier age, allowing you to invest a larger portion to your retirement.

• Is cryptocurrency a worthwhile asset to add to your financial plan in Springfield?

  You can add cryptocurrency to your financial plan in Springfield, provided you understand the risks attached. Cryptocurrencies are highly volatile assets, with no central institution governing or monitoring their value or quantity. Bitcoin, a popular form of cryptocurrency, has a history of massive increases and decreases in value over a year, sometimes increasing its value by 1,000% from the previous year or dropping up to 80% of its value in a short period of time.

• 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.