Best Financial Advisors in Knoxville

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 an individual retirement account in Knoxville?

  An individual retirement account is a type of investment that provides individuals in Knoxville with tax advantages to save for retirement. There are two common types of IRAs, which are traditional IRAs and Roth IRAs. Traditional IRAs allow individuals to make tax-deductible contributions and potentially defer taxes until retirement, while Roth IRAs allow individuals to contribute after-tax money, and qualified withdrawals in retirement are tax-free.

• What is the average credit score in Knoxville?

  The average credit score in Knoxville is around 711, which is close to the national average of 714. Credit scores are determined by a wide range of factors, which include the amounts owed on credit accounts, payment history, length of credit history, new credit accounts opened, and the types of credit accounts held.

• What are the requirements for obtaining a mortgage in Knoxville?

  The requirements for obtaining a mortgage in Knoxville can differ, but they generally involve providing certain documents and meeting specific criteria. These may include presenting two forms of identification, at least one being a photo ID. A two-year work history, W-2s, and tax returns are also typically required. Additionally, lenders may inquire about a two-year address history and request information on property tax amounts and homeowner's association dues. Lastly, the name and contact information of the homeowner's insurance company are often requested.

• Is there an individual income tax in Knoxville?

  No, there is no individual income tax specific to Knoxville. Instead of an individual income tax, the state relies on other sources of revenue for its finances. For businesses operating in the state, there is a flat corporate income tax rate of 6.50 percent and also imposes a gross receipts tax.

• How can you find affordable housing options in Knoxville?

  If you are looking for affordable housing, you can use the Knoxville Community Development Corporation and the Tennessee Housing Development Agency to assist you in your search. It's also advisable to reach out to a financial advisor who can help you determine an appropriate housing budget based on your income and expenses.

• 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.