Best Financial Advisors in Fayetteville

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 is "Tax Loss Harvesting", and how can individuals in Fayetteville use it to their advantage?

  Tax Loss Harvesting is a smart financial strategy, especially beneficial for Fayetteville residents with eligible Intuitive Investor accounts. It involves systematically selling assets that have reduced in price, leading to realized capital losses. These losses are then offset against any capital gains the individual has earned, potentially lowering their tax due. Notably, this service is offered free of additional charges within eligible accounts, presenting an efficient way to manage their tax obligations.

• What does the NC 529 Plan offer to Fayetteville residents?

  For Fayetteville residents, the NC 529 Plan offers a powerful avenue to save and invest for future educational needs, including college, trade school, apprenticeship programs, and K-12 tuition. Notably, the plan's earnings are tax-free when used for qualified expenses, which range from tuition, books, and special-needs equipment to repayments of student loans. This tax advantage extends to everyone - children, grandchildren, or oneself - paving the way for a financially secure education journey.

• What is the difference between traditional and Roth IRAs, and what should individuals in Fayetteville consider when choosing between the two?

  The distinction between traditional and Roth IRAs revolves around taxation. Traditional IRAs allow for tax-deductible contributions, with taxes paid upon withdrawal, whereas Roth IRAs are funded with after-tax dollars, providing tax-free withdrawals in retirement. When deciding between these two, individuals in Fayetteville should reflect on their current tax situation, future tax predictions, and income levels. It is also vital to study IRS's Publication 590a or consult with a professional advisor to make an informed retirement savings choice.

• Who protects Fayetteville residents from potential investment fraud?

  The North Carolina Department of the Secretary of State Securities Division protects Fayetteville residents from potential investment scams. Comprising skilled attorneys and financial investigators, the team scrutinizes securities, inspects registered firms, and enforces rules. Its enforcement, registration, IA audit, compliance, investor protection, and education services teams work to guarantee that business operations involving securities and investment advice align with state law, ensuring investments of Fayetteville citizens are secure and legitimate.

• What options do individuals in Fayetteville have after saving their hard-earned money?

  People in Fayetteville have various savings choices to capitalize on. They can utilize Certificates of Deposit, which are essentially short-term loans to banking establishments with FDIC assurance of up to $250,000. Brokerage-held Asset Management Accounts are another alternative, offering versatile money management and investment options. Series EE Savings Bonds also serve as a viable option, especially with their education-related tax advantages. Moreover, Money Market Funds, which pool diverse short-term debt securities, offer a safe haven with moderate income potential.

• 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.