Best Financial Advisors in Burnsville

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 residents of Burnsville minimize the risk of loss from bank runs?

  Residents of Burnsville could minimize the risk of loss from bank runs by using federal deposit insurance. The Federal Deposit Insurance Corporation protects up to $250,000 per individual and $500,000 per joint bank account. Depositors who have more than these may deposit with another insured bank and obtain another $250,000-$500,000 worth of assurance.

• Should an investor in Burnsville hold on to stocks or convert to cash during economic recessions?

  An investor in Burnsville should generally stay with stocks during a recession because it is a better long-term option. In the 12 months following an economic downturn, the market usually recovers stronger than before. Markets are usually bullish right after downtime and the sole exception has been the year 2001 where it took more than a year to grow back.

• How could residents of Burnsville use credit cards to improve their finances?

  Residents of Burnsville could use credit cards to improve their finances by sticking only to essentials like phone bills, groceries, and utilities such as power. The balance has to be paid off each month to prevent interest from stacking up. The rewards and sign-up bonuses offered by these instruments further ease daily expenses.

• How long does an investor in Burnsville have to wait to avail of the lower capital gains tax rate on the sale of assets?

  An investor in Burnsville has to wait for more than twelve months before selling off a capital asset in order to qualify for the lower tax rate on the sale. Otherwise the transaction will be taxed like one involving an ordinary asset and subjected to the higher ordinary income tax rate.

• Should investors in Burnsville who have families consider a life insurance policy?

  Yes, investors in Burnsville who have families must consider a life insurance policy. Owning a policy provides an alternative source of funds usable by family members for probate and funeral expenses when the insured dies. The proceeds pass in ownership without having to go to court first, saving on time and costs.

• 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.