Best Financial Advisors in Portland

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 do you generate money with an individual retirement account in Portland?

  When you open an individual retirement account in Portland, you can typically generate money through interest, capital gains, dividends, and rental income properties. IRAs can also provide you with different investment options for tax-efficient investment, which include stocks, bonds, ETFs, mutual funds, and real estate. There are different types of IRAs available to you, such as self-directed IRAs and Roth IRAs.

• How can a financial advisor help divorcees in Portland?

  A Portland financial advisor can help divorcees and couples navigate the financial aspects of their separation before, during, and after the divorce. The financial advisor can help divorcee clients to address and consider their lifestyle, gain a better perspective of their expenses, gather and organize financial information, and help them become aware of the options available to them. Some financial advisors also have knowledge of tax law and can help divorcees reach equitable divorce settlements.

• What are the different types of 401(k) plans available to small business owners in Portland?

  Small business owners in Portland, Oregon have different types of 401(k) plans available to choose from, including traditional 401(k), individual or solo 401(k), safe harbor 401(k), Roth 401(k), and SIMPLE IRA. The amount small businesses can contribute to their 401(k) is contingent on different factors, such as the type of 401(k) plan, the amount of income the business makes, the number of employees, and the contribution limits.

• How do you choose the right financial advisor for retirement in Portland?

  When seeking a financial advisor in Portland, don't be afraid to ask your own questions and involve your spouse or partner to ensure everyone benefits from their expertise. Check for professional credentials like CPA, PFS, CFP, or CFA, and consider interviewing multiple candidates. Checking references and understanding how the advisor earns income, whether through commissions or other means, is crucial in making an informed decision.

• What is the difference between 401(k) and IRA in Portland?

  The primary difference between 401(k) and IRA in Portland is that only employers can open and offer 401(k)s, while individuals can open IRAs through banks or brokers to save for retirement by themselves. However, if an employer doesn't offer a 401(k), the employee has the option to open an IRA or is eligible to participate in the state of Oregon's retirement savings program, called OregonSaves.

• 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.