Best Financial Advisors in Santa Fe

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 should you do to achieve your retirement goals in Santa Fe?

  To achieve your retirement goals in Santa Fe, it is important that you establish a plan. You should allocate your assets to determine how your investments will be distributed for bonds, stocks, or other cash alternatives. You must also clean up your accounts from current and past employers and manage beneficiary designations.

• What are your education funding options in Santa Fe?

  You can use various types of savings accounts in Santa Fe to fund your family members' education. For instance, you can use the 529 plan, which is the most tax-efficient way to save for your child's education. It is a state-sponsored plan that allows higher contribution limits. You can also choose Coverdell Education Savings Account, which offers more investment options than a 529 plan. In addition, you can create a custodial account, however, it may be subject to tax liabilities.

• What is the purpose of a Trusteed IRA for individuals and families in Santa Fe?

  A Trusteed IRA is a tool that can help individuals and families in Santa Fe establish their wealth plans. It combines the tax benefits of a traditional or Roth IRA. It also addresses matters involving the ability of a beneficiary to manage and use their assets wisely. A Trusteed IRA also puts a plan in place in case people cannot make investment decisions or pay bills.

• Why do wealth transfers in Santa Fe fail?

  There are multiple reasons why wealth transfers fail and money does not survive transfers multiple generations in Santa Fe. Sometimes, families do not communicate clearly with each other. They might also lack a shared vision about their family's wealth. Some family members are only focused on money and the things they can achieve or acquire using it. This might lead to misuse and overspending.

• How does owner-only defined benefit plan work in Santa Fe?

  An owner-only defined benefit plan is designed for business owners in Santa Fe who want to save more money and increase or maximize their contributions. Business owners should have a stable income, typically over $100,000 per year. They should contribute for at least three years, but they can contribute more or less each year if business conditions change.

• 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.