When you hear that a firm offers “comprehensive financial planning” what exactly does that mean? You likely know that a financial advisor can tell you how much you should be saving for retirement and how best to pay down your debt. You probably know that your advisor will manage your investment accounts and help you decide when to claim Social Security. But do you know how much else a financial advisor can truly help with? Here is a quick overview of some questions you may want to ask your financial advisor.
In my last blog post, I explained the basics of the different types of retirement savings accounts. You may understand your choices, but which type of account is best for you to contribute to? Should you choose Roth or Traditional contributions? How much should you contribute? Which investments should you choose? It’s impossible for anyone to give you all of the right answers to your questions without knowing your specific situation, but here I'll outline some of the most common questions I’ve heard and some things to think about to help you arrive at the best answer for you.
Maybe you’ve heard that you should be saving for retirement, but you don’t know where to start. Or maybe you are already saving, but you don’t understand all of your options. The general idea of a retirement account is to put away money to grow so that you can use it when you need it for expenses later on in life. Sounds pretty simple, right? Yet there isn’t just one type of retirement account and not everyone has access to all types of accounts. Each account has different contribution limits and some work better than others in certain situations.