Best Financial Advisors in Bellingham

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 responsibilities of a fiduciary in Bellingham?

  Being a fiduciary in Bellingham entails an obligation to fulfill responsibilities towards a client. Although roles may vary depending on specific circumstances, they can include financial management, property consultant, executor, or personal representative. It is expected that a fiduciary will always think about what's best for the client and avoid any conflicts of interest.

• Can you have multiple IRA accounts in Bellingham?

  Yes, you can have multiple IRA accounts in Bellingham and across the state of Washington. You are considered a dual member if you are a member of more than one retirement system. There are no limits on how many retirement accounts you have, however, there is a cap on how much you can deposit in a year which is a total of $6,500.

• Will you have tax exemptions in Bellingham when you are already retired?

  Yes, the city of Bellingham and the state of Washington offer senior retirees property tax exemptions. When you are drafting your retirement plan, it is important to consider any tax exemption programs to maximize your income. People with disabilities and disabled military veterans are also included in the property tax exemption program.

• What are the advantage and disadvantages of common stocks in Bellingham?

  Common stocks work the same way in Bellingham like in any other location in the United States. There are specific advantages and disadvantages to investing in common stocks. The advantages of common stocks are the voting power you have as a shareholder and the fact that there is no limit as to how much your stocks can grow. Taxes are also deferred until your stocks get sold. One of the disadvantages of common stocks is their price volatility and unpredictability of what you can receive in dividends.

• Is common stock better that preferred stock in Bellingham?

  Determining if common stock is better than preferred stock in Bellingham will depend on several things, such as investor preference, risk assessment, and financial objectives. Common stock will give you voting power and potential unlimited earnings. On the other hand, a preferred stock gives you fixed dividends and priority in dividend payouts.

• 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.