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Frequently Asked Questions

You should consider investing money if your objective is to build wealth. Investments put your money in savings back to work to earn more money and potentially increase value and outpace inflation.

Choose an investment based on your financial goals, income, and tolerance for risk. Financial goals can either be long-term or short-term with the latter being five years or less. For long-term financial goals like retirement, you can consider riskier investments since you have time to recover from stock market fluctuations. Short-term financial goals could involve compounding money in a high-yield saving account for better returns.

Yes, each investment opportunity bears some level of risk. However, some opportunities are riskier to invest in than others.

Beginners are often scared about the investment path, so safer investments are more appropriate. It is crucial that one understands how each investment opportunity works and the risks involved before investing in it.

Some investment categories suffer more risk than others. Some of the safest investments include Money Market fund accounts, treasury inflation-protected securities, Government securities, and certificates of deposits (CDs).

A high yield savings account is the safest option with the highest return. However, these often come with high balance requirements, variable interest rates over time, and may not be the best option for long-term growth.

Having an investment advisor will help you better understand each security’s risks and potential rewards. Working with a a professional will also help streamline your investment planning and financial goals for a fee.

A financial planner can help you assess your current financial situation. They can also help you create a budget to meet both short and long-term needs. Using a structured process, financial planning aims to help you minimize loss and maximize wealth. Although it costs money to hire a financial planner, it’s important to consider every resource available to protect and grow your wealth. Paying a Financial Planner can often mean that you save more in taxes and make more informed investments. Financial planners can also help you stay on track for estate planning and goal setting so that you have the money you need when you need it.

The Certified Plan Fiduciary Advisor (CPFA®) credential demonstrates knowledge, expertise, and commitment to working with retirement plans. Plan advisors who earn their CPFA® demonstrate the expertise required to act as a plan fiduciary or help plan fiduciaries manage their roles and responsibilities.

No. Accountants  assist with putting together financial statements for businesses or managing individual finances, including tax preparation. On the other hand, financial planners help individuals with retirement planning and wealth management, among other services.

A high yield savings account is the safest option with the highest return and is considered the gold investment standard.

Tax planning involves taking stock of your financial situation and planning all the possible tax implications. This helps you pay the lowest possible taxes in a particular situation. Moreover, tax planning is an essential part of your individual financial planning strategy. Working with a tax planning professional can help you experience a tax-optimized retirement and minimize your overall tax burden.

Tax planning examples include retirement tax strategies. Two examples include contributing to your employer’s 401(k) and investing in IRAs that allow you to withdraw funds tax-free after age 59 ½. Income tax planning strategies include meeting with a financial advisor who understands how to minimize your income tax liability while still meeting your tax obligations. Additionally, tax planning also includes important decisions such as taking advantage of tax deductions associated with owning a home or running a business.

Tax planning involves planning your investments to reduce your overall tax obligation. Tax management includes maintaining financial records and filing your taxes on time to avoid penalties and higher fees. It’s important to have a trusted advisor who can help you with strategizing, tracking and managing accounts with a tax impact. This includes investment, income and personal and business expenses that affect your taxes.

Tax planning is only one part of a healthy wealth management strategy. Remember, you don’t have to navigate this difficult process alone. Collaborate with a tax planning professional to review all your options.