Need an Advisor? Read This First
Updated: Jun 3, 2023
*Not financial advice. Your money, your choice.*
In one of my past articles, I wrote about the reasons why people may not want to use services offered financial advisors. I would recommend giving it a read as well because it provides some additional context in making the decision of whether or not to find an advisor or other financial professional for help. You can find that article here.
Image from SmartAsset.com
As we navigate our financial lives, we can come across difficult and confusing situations. Often times, the best thing to do when you find yourself in one of these situations is to hire a financial professional be it a financial advisor, accountant, or both.
Financial advisors can provide us with expert advice on a range of financial matters. In this blog post, we will explore three specific ways in which a financial advisor can help us manage our finances.
Help with RSUs on different vesting schedules
Many companies offer their employees RSUs as part of their compensation package. RSUs are restricted stock units that vest over time, which means that you gain ownership of a certain number of shares over a set period.
However, RSUs can come with complex vesting schedules, which can make it challenging to manage your income and taxes effectively. This is where a financial advisor can be invaluable.
They can help you make sense of the vesting timeline and create a plan to manage your income and taxes. They can advise you on when to sell your shares, how to diversify your holdings, and how to maximize your gains.
Advisors can also help you understand any tax implications that come along with RSUs and help you plan accordingly.
Creating a trust and a will
Creating a trust and a will is crucial for protecting your assets and ensuring that your wealth is distributed according to your wishes.
A financial advisor can work with you to establish the right type of trust for your needs, select trustees, and create a trust document that meets your unique requirements. They can also help you set up a will and ensure that your estate plan is up to date.
This is particularly important if you have a high net worth or complex family situation. A financial advisor can help you navigate the complexities of estate planning, so you can have peace of mind knowing that your assets will be distributed according to your wishes.
Help lower your tax burden and provide special credit facilities
If your financial advisor is also a bank, they can offer you a range of services that can help lower your tax burden and provide you with special credit facilities. They can advise you on tax-efficient investment strategies, help you manage your income to minimize taxes, and provide you with access to special credit facilities such as a line of credit or a low-interest loan.
Additionally, they can help you with tax planning and preparation, making sure that you are taking advantage of all available tax breaks and deductions.
A financial advisor can be a valuable partner in helping you manage your finances effectively and can offer a significant ROI specifically through trust planning and lowering the tax burden of those that you wish to pass assets to. ROIs can be especially good if they belong to a bank that can offer discounted credit facilities (if you're particularly wealthy).
They can also provide expert advice on complex financial matters, such as RSUs and estate planning, and help you lower your tax burden and provide special credit facilities. If you have a lot of wealth or need some help to unwind some complicated tax situation, hiring an advisor and or other financial professional may provide you a lot of value.
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