Best Financial Advisors in Seattle

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.
  

• Can a part-time employee in Seattle contribute to the WA Cares Fund?

  Yes. In addition to full-time workers, part-time and temporary employees in Seattle and across Washington State can contribute to the fund and obtain long-term care benefits. Some workers are exempt, however, including federal employees. Contributing to WA Cares is optional for those who are self-employed or working in tribal businesses.

• Why should you consider sustainable investing in Seattle?

  In a nutshell, the motivation behind sustainable investing is the desire to make the world a better place. This could be right for you if you are a value-driven person who would rather invest in, say, a company in Seattle that operates with a minimal carbon footprint. This is an example of socially responsible investing (SRI), as well as environmental, social, and governance (ESG) investing.

• Which one is more expensive: hiring a “fee-only” or a “fee-based” financial advisor in Seattle?

  While it depends on rates, one might end up spending more when working with a “fee-based” advisor in Seattle. This is because they typically earn commissions from the products bought by their clients, on top of the fees they charge for their services. In contrast, a “fee-only” financial advisor receives compensation solely through direct client payments. These come in the form of hourly fees, subscriptions, or charges based on an “assets under management” model.

• What expenses should you prepare for as a first-time homeowner in Seattle?

  In addition to mortgage payments, you should set aside funds for things like emergency maintenance and homeowners’ insurance. Check if your mortgage already comes with insurance and whether you should purchase add-on coverage for natural disasters since Seattle faces earthquake and flood risks. You might also need to pay property taxes. Like insurance premiums, these can be bundled into your monthly payments.

• Why should you save up for a 20% down payment on your first home purchase in Seattle?

  You should aim to make a 20% down payment because otherwise, you will need to pay primary mortgage insurance (PMI) on your Seattle mortgage. This means you will have higher monthly payments until your balance becomes less than 80% of the original appraisal amount for the home. While not required, a 20% down payment would be seen by lenders as less risky.

• 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.