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Tag: advisors

Op-ed: There’s an increased demand for financial advice. Are advisors up to the challenge?

Finance
Jamie Grill | The Image Bank | Getty ImagesThe financial uncertainty created by the global pandemic has made an impact on Americans of all generations and income levels.Even as the economy starts to show signs of recovery, too many Americans are still unemployed, and the uncertainty over the shape of economic recovery lingers. For some, that is translating to concerns around whether a secure retirement will be possible. For others, it is causing anxiety about the attainability of basic financial goals, such as buying a new home or sending a child to college.And for many younger Americans, it is raising questions about the impact of the pandemic on their lifetime earnings potential and what that means for their longer-term financial security.More from FA Playbook:Here's a look at other stor...

That raise you got might complicate saving for retirement, but advisors have workarounds

Finance
Supoj Buranaprapapong | Getty ImagesIt's always nice getting a raise, but it could affect your ability to save for retirement through your 401(k) plan.Highly compensated employees — those making more than $ 130,000 annually — may not be able to contribute the maximum to their tax-deferred retirement plan if their lower-paid colleagues aren't diligently socking funds away, too.The 2020 and 2021 limits for deductible contributions to a 401(k) plan are $ 19,500, or $ 26,000 including a $ 6,500 optional catch-up contribution for people over age 50.Highly compensated employees, however, may not be able to contribute those maximum amounts. HCEs are defined as anyone who makes more than the $ 130,000 income threshold or who — along with their spouse and/or family members — owns more than 5% ...

Second stimulus checks may be on the way. Here’s what advisors say you should do with the money

Finance
sturti | E+ | Getty ImagesA new stimulus check is in the works for millions of Americans.If you're eligible for a payment, it may feel either like a life raft or a sudden windfall, depending on how Covid-19 has affected you and your family.The payments are said to be around $ 600 per individual, down from the $ 1,200 sums that were authorized by Congress in the spring, according to the latest reports out of Congress. Lawmakers are continuing to negotiate on new coronavirus relief aid.That's as 20.6 million Americans were receiving unemployment benefits as of Nov. 28. First-time claims rose by 885,000 for the week ending Dec. 12, the biggest one-week increase since Sept. 5."If you're jobless, you should obviously pay for one of three things, either shelter, food or medication," Winnie Sun...

Op-ed: Advisors can help clients manage their human capital

Finance
Vladimir Vladimirov | E+ | Getty ImagesThe role of a financial advisor can encompass areas that many people might not expect.The truth is a financial advisor is not just someone who helps with investments. Quite often, the job is to assist with every aspect of a client's financial life.Advisors use their expertise to create a personalized financial plan to help realize the client's goals. That same advisor also can leverage their skillset to work with a client to manage their human capital to earn income and build wealth.This is a key because human capital is essentially the future earning power a person has left in their career. I believe it is my responsibility to help clients maximize their human capital and plan for it so that its transition into financial capital is optimized.More fr...

This risk threatens retirees’ nest eggs. Here’s how advisors are protecting them

Finance
AJ_Watt | E+ | Getty ImagesForget volatility. The thing that keeps certified financial planner Neil Waxman on edge is clients' cybersecurity practices and the threat of identity fraud."It's not the markets that keep me up at night," said Waxman, managing director of Capital Advisors in Shaker Heights, Ohio. "This is the thing that concerns me."It's the thing that keeps me up at night more than anything else: a client getting hacked or something coming into our system, even though we have best practices," he said.Waxman is right to be concerned.More from Advisor Insight:What to tell your older kids about your estate planYour advisor may be able to sidestep this federal ruleDon't hide these things from your financial advisorIdentity fraud — what happens when scammers use your personal inform...