Best Financial Advisors in Schenectady

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 are the ways that a financial advisor in Schenectady can help entrepreneurs with their and their employees' retirement?

  Financial advisors in Schenectady can assist entrepreneurs in crafting a business retirement plan—including 401(k) and SIMPLE IRA—that benefits both the company and its employees. These plans can help business owners gain control over income taxes in retirement distributions and retain ownership of their money. Financial advisors are additionally able to ensure that the plan is implemented efficiently while adhering to the Employee Retirement Income Security Act (ERISA) restrictions.

• How can Schenectady residents discern the difference between short-term and long-term investments?

  People in Schenectady can discern savings and investments by identifying what their goals are for such funds. They can assign short-term investments as their emergency fund for home repairs, income loss, or health concerns. Individuals can also use these as their go-to source for planned purchases, such as buying a new car or going on a vacation. On the other hand, long-term investments are those that they can utilize for wealth building, retirement, or their children's college education.

• How are fiduciaries different from financial advisors in Schenectady, and are all financial advisors fiduciaries?

  Fiduciaries in Schenectady are those who are bound by their legal obligation to act in the best interest of their clients. They took an oath to uphold the professional codes of conduct, including the duty of loyalty, care, good faith, confidentiality, prudence, and disclosure. Financial advisors, on the other hand, are those who help clients meet their financial goals through a plan without legal liability for their money. That said, not all financial advisors are fiduciaries.

• How can Schenectady women in their 50s prepare for retirement?

  According to the Social Security Administration, an average 65-year-old woman is estimated to live up to 86 and a half years old. Women in their 50s in Schenectady should start thinking about a 20-to-40-year retirement plan and how to preserve their money because they have less time to recover losses. Additionally, they should consider investing in extended care coverage since Medicare only covers a few weeks of nursing home care.

• How does inflation affect the investments of people in Schenectady, and how can they minimize its impact?

  Inflation reduces the real return rates on individual investments. If they are paid $100 every year, that amount will decrease due to inflation. In addition, it diminishes people's purchasing power because when the rate rises, so do the prices of goods. This means that $100 will purchase fewer items than before. Investors in Schenectady can minimize its impact by diversifying their investments. They can seek advice from a financial advisor on how to best allocate their assets in their portfolios.

• 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.