FAQs

1: Why hire a financial advisor?

A financial Advisor can provide guidance on developing an overall investment strategy, asset allocation, minimizing taxes, rebalancing, and how to structure/time withdrawals from your retirement accounts. A good financial advisor can keep their clients’ fears and emotions in check by providing steady, fact-based advice and reassurance when the markets get wobbly or crazy. A financial advisor can undertake a fiduciary responsibility.

2: What is a Fiduciary?

A fiduciary is a person that should place a client’s interest ahead of their own. Fiduciaries must also disclose their fees, how they are compensated and any other conflicts of interest that might influence an individual’s decision to use their services.

3: What is the difference between an IRA and 401k?

They a both similar as effective way to save for retirement. IRA can consist of many different types of investments. 401K is an employer option that can offer several funds to match different risk tolerance. Both have different and specific tax treatments and requirements. There are detailed requirements for contribution and deductions for both.

4: Are their differences between Stocks, Bonds, Mutual funds and CDs?

Stock is defined as a share of ownership of a company that is issued buy a company that is bought and sold on various trading platforms. A Bond however, is more like a loan or debt; a bond is a promise that a company makes to pay you back the amount you lent them plus interest. A mutual fund is an investment vehicle made up of a pool of money collected from many investors for the purpose of investing in securities such as stocksbondsmoney market instruments and other assets and are operated by professional money managers. A certificate of deposit, or CD, is a type of savings account that has a fixed interest rate and fixed date of withdrawal, known as the maturity date commonly sold in the United States and elsewhere by banks, thrift institutions, and credit unions.

5: What is investing in financial market.

Investing allows you to significantly grow your money over time thanks to the power of compound returns. Investing your money can allow you to grow it. Most investment vehicles, such as stocks, certificates of deposit, or bonds, can offer returns on your money over the long term. This return may allow your money to build and may create wealth over time.

6: Are there risks while investing?

There are many risks involved. Market risk, credit risk, foreign exchange risk, systematic risk to name a few. Investing will have risks and no guarantee on financial vehicle performance can be made. Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing.

7: Where is stock trading done?

First off stock trading consists of buyers and sellers initiating the trade of newly and previously issued shares which are offered by one investor and bought by another. These trades are done on various trading platforms through brokers and dealers on many different indices the most recognizable names such as Dow 30, NASDAQ and S&P 500.

8: What is Dow Jones 30, NASDAQ and S&P 500?

Dow Jones Industrial average was named after Charles Dow, and simply this index tracks the 30 largest U.S. companies. The NASDAQ Composite is both an index and trading exchange which tends to be mostly comprised of tech companies. There are roughly 3,000 companies tracked on NASDAQ. S&P 500 “Standards and Poor’s” tracks 500 large U.S. companies across a wide span of industries and sectors. The stocks in the S&P 500 represent roughly 70 percent of all the stocks that are publicly traded. These are called indices

9: What is the New York Stock Exchange?

The New York Stock Exchange. NYSE is a stock exchange located in New York City that is considered the largest equities-based exchange in the world, based on the total market capitalization of its listed securities. It provides a marketplace for buying and selling 9.3 million corporate stocks and other securities a day. The physical location is on Wall Street in Manhattan New York.

10: Where and What is Wall Street?

In a literal sense it is a street at the southern tip of Manhattan. In the early days of America many financial institutions gathered in the area to conduct trades via paper slips due to the proximity to The New York Stock Exchange. Wall Street is the original home of the New York Stock Exchange and the historic headquarters of the largest U.S. brokerages and investment banks. The metaphorical financial heart of U.S. and global financial system.