Best Financial Advisors in Waldorf

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 happens if you want to access your Waldorf retirement fund before being halfway through 59?

  If you wish to access your Waldorf retirement fund before you are halfway through 59, you will have to pay the 10% early withdrawal penalty. However, you may opt to consider establishing 72(t) contributions, also known as substantially equal periodic payments, which will allow you to access your retirement fund without the early withdrawal penalty.

• How much does it cost to hire a financial advisor in Waldorf?

  There is no definite cost for hiring a financial advisor in Waldorf. Financial advisors may charge you for their services on a fixed rate, an hourly rate, based on commissions, or a combination of the three. For instance, your advisor can charge you a one-time fee for developing and monitoring your financial plan. If they execute the plan, they may ask for an hourly fee or a percentage of your assets that they manage.

• Can you roll over your employer-sponsored retirement savings into your traditional IRA in Waldorf?

  Yes, you can transfer your employer-sponsored retirement assets to your Waldorf traditional IRA. However, it is best to re-evaluate your company plans with your financial advisor before doing the rollover. This is because some employer plans do not allow assets from a traditional IRA to be transferred back to employer-sponsored retirement accounts.

• Will you still pay some taxes for Social Security if you have no other source of income in Waldorf?

  No, you will not have to pay any taxes on your Social Security benefits if you do not have any other source of income in Waldorf throughout your retirement. This is because your total income is less than the IRS's minimum taxable limit. However, if you get Social Security benefits and have other sources of income, you will be obliged to pay some taxes, depending on your income level.

• What happens if you have employer stock(s) in your employer-sponsored retirement account in Waldorf?

  If you have employer stock in your Waldorf employer-sponsored retirement account, you can transfer it to an IRA or a taxable brokerage account. If you intend to roll the stocks into your IRA, the full value of that stock will be taxed as income at your regular rate. Meanwhile, if you transfer the stock to a taxable brokerage account, you will be taxed on the difference between the stock's value and the price you paid for it, which is also known as capital gains taxes.

• 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.