Best Financial Advisors in Spokane

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 you roll over money from your employer-sponsored retirement plans to an individual retirement account in Spokane?

  Yes. You can roll over assets from employer-sponsored retirement plans to an individual retirement account in Spokane if you leave a job or retire. Through an IRA rollover, you can transfer your retirement savings to an account at your preferred private institution and choose how to invest the funds. Note that the funds must be deposited in the IRA within 60 days of withdrawal from an employer’s plan to preserve the tax-deferred status of retirement savings.

• How soon can you collect social security benefits in Spokane?

  The earliest you can begin collecting your social security benefits in Spokane is at age 62. The maximum benefit you can get at this age is $2,324 per month, according to the Social Security Administration. Note that if you choose to enroll early, you will permanently lessen your monthly benefit by as much as 30% every month throughout your retirement.

• Should you borrow from your 401(k) in Spokane to pay off debt or to make a major purchase?

  There are some factors you need to consider. The money you borrow from your 401(k) in Spokane may not benefit from the potentially higher returns of investments. You may even be tempted to stop contributing. If you fail to pay your 401(k) loan, you may need to pay a 10% penalty tax if under age 59½ as well as other income taxes. Furthermore, you will need to repay a plan loan within five years and make payments at least quarterly if ever you change jobs or get laid off.

• How do you fund a Roth IRA in Spokane?

  There are three ways to fund a Roth IRA in Spokane. First is by opening a Roth IRA account and contributing directly. You can contribute up to $6,000 to an IRA and $7,000 if you are aged 50 or older. The second option is by converting traditional IRA assets. When it comes to Roth conversions, there are no limits. The final option is by rolling over or converting funds from an employer plan.

• When can you withdraw funds from a profit-sharing plan in Spokane?

  If you are a part of your company's profit-sharing program in Spokane, you may withdraw funds after age 59½. Withdrawing funds early on comes with a 10% penalty. Depending on the company, some allow early withdrawals. Profit-sharing providers are usually more flexible when it comes to deciding the terms of early withdrawal compared to administrators of other plans, such as 401(k)s.

• 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.