Best Financial Advisors in Maple Grove

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 constitutes a comprehensive wealth management plan for clients in Maple Grove?

  A comprehensive wealth management plan for Maple Grove residents involves running cash flow and income projections to determine how much you should be saving to be able to retire, how much can you spend during retirement, and how to plan for your other life goals such as college education or second home. Another key area of wealth management includes tax planning. This includes allocating your portfolio in a tax-efficient manner, using low-turnover, tax-efficient investments, creating an income withdrawal strategy, performing tax loss harvesting, capital gains management, and helping choose the best accounts to utilize.

• Is it worthwhile for Maple Grove residents to avail the services of financial advisors?

  The value of a financial advisor hinges on the individual circumstances of a Maple Grove client. If a client's financial situation is relatively uncomplicated, he might find it more advantageous to manage it independently. However, for those possessing substantial assets or complex investment portfolios, engaging the services of a professional could prove beneficial despite the associated cost.

• When engaging in retirement plan discussions with financial advisors, what key factors should Maple Grove residents take into consideration?

  When discussing retirement plans with financial advisors, Maple Grove should consider several important factors, including their income goals and the possible ways to achieve them. They must also tackle ways to determine how much money will be necessary during post-retirement life and figure out where those funds come from.

• Do financial advisory services cover options Maple Grove clients have with their old retirement plans like 401(k) and 403(b)?

  Yes. Financial advisors can assist Maple Grove clients in exploring various avenues regarding their 401(k) plans. They can help clients evaluate the feasibility of keeping the money in their existing 401(k), transferring funds to their new employer's plan, or opting for a check to utilize the funds as needed. Typically, when employees depart from their employers, retirement and 401(k) plans offer a minimum of four options to consider.

• How does a fee-only payment arrangement in financial planning benefit clients in Maple Grove?

  A fee-only arrangement ensures there are no conflicts of interest that might arise if the advisor were motivated to push particular products or investments that might not be the most suitable for Maple Grove clients. In this payment structure, advisors do not earn commissions for selling insurance products, nor do they receive any incentives for recommending specific investments. Instead, their sole focus is on providing unbiased advice that aligns with the client's best interests.

• 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.