Best Financial Advisors in Dearborn

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.
  

• How can you withdraw from a Deferred Retirement Option Plan (DROP) account in Dearborn?

  There are several ways members of the Michigan State Police Retirement System in Dearborn can withdraw from the Deferred Retirement Option Plan (DROP). They have the option to take out a lump sum, transfer the balance to another plan, or withdraw some amount and then take the balance at a later time. They can also leave a balance on their DROP account where it will earn an interest rate of 3% but must withdraw everything not later than April 1 of the year they turn 70 years and six months old.

• What are the differences between capital and money markets for an investor in Dearborn?

  Capital markets are where investors trade assets such as stocks and bonds. On the other hand, individual investors, banks, and governments invest in money markets assets like funds, savings accounts, and Certificates of Deposits. The former usually yields higher returns, is tougher to convert to cash, and is riskier. Depending on the Dearborn investor's risk tolerance and financial goals, either type of investing can be preferable.

• Is Dearborn business- and investment-friendly?

  Dearborn offers business- and investor-friendly programs such as Pure Michigan, Federal Historic Tax Credit Program, and Brownfield Redevelopment Authority (BRA). Added to these programs, it implements a corporate income tax of 6%, making it one of the pro-business places in the nation. For further information, visit the Dearborn Administrative Center at 16901 Michigan Ave. Dearborn, MI 48126, or give it a call at 313-943-2150.

• Are there life insurance plans in Dearborn that do not require medical exams?

  Yes. Generally, people in Dearborn under the age of 65 who are healthy may be able to get insurance plans with no medical exam. However, the insurance company will have to assess first whether an exam is required or not. Upon application, you will be asked to answer a questionnaire and disclose your health history and any medical conditions. Take note to be truthful in your answers because if not, you and your family may be denied benefits when the time for the insurance to be used comes.

• Would T-bills be a low-risk investment for someone in Dearborn?

  T-bills are considered the safest investment there is because it is backed by the federal government, which has historically never defaulted. This means that someone in Dearborn who invests in T-bills is guaranteed by the government their money will not be lost. However, there are downsides to investing in T-bills and one of these is low returns. If the market is doing well, money invested in T-bills is better off invested in other types of securities.

• 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.