Understand Your Issues
FinancialAdvisors.com offers the consumer a very efficient and easy way to locate a qualified financial advisor that meets your needs.
Most Investment Advisors these days will provide investment advice in addition to financial planning. Sound financial planning advice includes matters such as savings and budgeting, loans and mortgages, retirement planning and for some, life insurance. Like financial planners, investment advisers must understand your basic financial goals and the present and future uses of your money. Gathering personal and financial data and understanding your risk tolerance is essential when creating your overall financial plan which may impact your expected rate of return.
Investment advice can be either narrowly tailored such as whether to invest in stocks, bonds, ETF’s or mutual funds or more broadly based that includes precious metals, art, real estate, and much more. Some topics to cover with an Investment Advisor would be:
- Where should I start and what should I invest in
- Risks associated with each investment
- What is the expected rate of return on my portfolio
- Should I diversify my portfolio and if so, how
- The types of taxable income your investment will generate
- What investment should be owned inside/outside of a retirement account
- What is a reverse mortgage and would it be good for me
Many Investment Advisors specialize in certain investment types so it’s helpful to understand the issue which caused you to seek assistance in the first place. With your issue in focus, search our registry for an advisor that works specifically with those types of investments.
Most Tax Advisors have a very strong understanding of the IRS and state codes to assist individuals and businesses to reduce their tax burden to lowest possible amount. Judge Learned Hand, Chief Judge of the United States Court of Appeals for the Second Circuit, was famously quoted, “Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one’s taxes. public duty to pay more than the law demands.”
Most Tax Advisors are either an Enrolled Agent (EA) or a Certified Public Accountant (CPA).
An EA is licensed by the federal government and are approved to represent clients before the IRS. They mostly provide general consumer and business tax services like income tax preparation and specialized tax planning advice. A CPA, while not licensed by the federal government, is licensed through the state and are authorized to conduct tax audits for individuals and businesses.
Professionally credentialed tax advisors can run their own offices, work for tax-preparation chains and some even become a Personal Financial Specialist (PFS) which is very similar to a CFP credential. A competent tax advisor is usually worth many more times the fees that he or she charges for their services. First, they must understand the cumbersome and complex 2,600 page U.S. tax code to find beneficial tax breaks and second, they act as a guardian in preventing unscrupulous promoters from taking advantage of their clients.
Many Tax Advisors also direct their clients to consider the tax ramifications when considering retirement planning, investment management and small business planning. Discussing your tax issues with an experienced Tax Advisor makes great practical and financial sense. So, feel free to find a capable and skilled Tax Advisor and take Judge Hand’s advice!