Best Financial Advisors in Chattanooga

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 much income increase do you need to prepare for retirement in Chattanooga?

  According to the Consumer Price Index, the average cost of living fluctuations in the previous 20 years is 4%-5% annually. It is advised that Chattanooga residents look to increase their earnings at the same rate per year in order to prepare for their cost of living during retirement. The purchasing power of your $500 in 2023 will be decreased by the time you’re 60. A consultation with a financial advisor can help you get clarity on retirement planning.

• How does the financial planning process with a Chattanooga financial look like?

  Chattanooga financial advisors tackle all factors that may affect your wealth building, including cash flow, liabilities, assets, employer-provided benefits, and insurance coverages. A typical planning process includes outlining the client-financial advisor relationship, collecting client information, such as financial and lifestyle goals, risk tolerance, and assessing the client’s current financial situation. It also entails creating a personalized financial plan and presenting recommendations, implementing the financial plan, monitoring the financial plan’s progress, and making adjustments if needed.

• Should you allocate funds to fixed-income investments in Chattanooga?

  Fixed-income investments are ideal for people who can hold investments long-term and are willing to wait for their maturity. This type of investment gives you a reliable income flow for the future and preserves your principal fund, thereby shielding your finances against market volatility and inflation. Speak with your financial advisor in Chattanooga to find local fixed-income investment products.

• What payment structures do financial advisors in Chattanooga offer?

  Financial advisors in the Chattanooga metro work on various payment models. Most advisors are compensated with commissions from the financial products they offer while fee-based advisors are paid a flat fee for their services. Advisors can also take a percentage of the assets under their management as compensation. It is important to understand your financial advisor's payment structure as it may play a role in the product and service recommendations they provide.

• Can a financial advisor help you manage your 401(k) accounts in Chattanooga?

  Your financial advisor can help you understand how your 401(k) accounts work and their role in your retirement. The advisor will diversify the allocation of your fund investments in order to balance potential gains and losses according to your personal risk tolerance and financial goals. Tax optimizing your 401(k) accounts and continuously adapting your investments to market changes can also be performed by your Chattanooga financial advisor.

• 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.