Not saying one SHOULD get a financial advisor (though there is a level of wealth where it probably makes sense), just that one shouldn’t take financial advice from an accountant. Speaking generally, it seems to be a risk-averse profession.
Roth IRA income limits
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Not saying one SHOULD get a financial advisor (though there is a level of wealth where it probably makes sense), just that one shouldn’t take financial advice from an accountant. Speaking generally, it seems to be a risk-averse profession.
Typical under 40 responses. Person asks a question and the woken accuse him of making too much money, he must be white, male, ha what a joke. People on here want you to donate 50% of your pay to freeloaders. Go capitalism! Good for you dude!
Just to be clear, my wife and I identify as an unemployed Asian lesbian couple from Montana who live in a tiny house. I was just asking for fun.
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"The income phase-out range for taxpayers making contributions to a Roth IRA is $125,000 to $140,000 for singles and heads of household, up from $124,000 to $139,000. For married couples filing jointly, the income phase-out range is $198,000 to $208,000, up from $196,000 to $206,000. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains $0 to $10,000."
https://www.irs.gov/newsroom/income-ranges-for-determining-ira-eligibility-change-for-2021
Blew by that myself and that is before you count my ER doctor wife.
Not bad for a history major.
https://www.irs.gov/newsroom/income-ranges-for-determining-ira-eligibility-change-for-2021
Blew by that myself and that is before you count my ER doctor wife.
Not bad for a history major.
Generally agree with this. It probably also depends on A) how complicated your financial picture is B) If you're choosing a legit FA or an insurance salesman.
I'd agree that the average middle class Joe doesn't need a FA, but to say nobody needs one is a little too black and white.
I'd say there are non financial reasons to get one as well. Maybe the person has no interest or aptitude in numbers or just wants the peace of mind. That being said I agree most people don't need one.
I think I know where you are coming from, but I think there are a ton of folks who do not have very much financial literacy. I think also there are plenty of snake-oil-salespeople playing financial advisor, so buyer be ware; however, I think a lot of people could benefit from a FA from some place like Vanguard. It’s going to be your typical advice, but with their strategy of low cost diversified indexes decreasing in risk with age, it would benefit a lot of people and not cost an arm and a leg. Just my $0.02.
If a person or family has a complex situation that affects their retirement or end of life planning, it can be beneficial to have some expert guidance.
Like you said, some people don't have the the aptitude or desire/time to become financially savvy, so they can benefit from some hand holding. My dad could easily handle my parents' financial planning on his own, but they still have an advisor because my mom would struggle with it should something happen to him.
As alluded to above, just make sure you pick someone with a duty to keep your best interests in mind, not someone who benefits by selling you a bunch of stuff you don't need.
Saying nobody needs a FA just because I don't is a little too simplistic.
If I spend my money on hookers and blow, can I deduct the amount of coke the hooker used as a business expense?
That is a slight bit of hyperbole on my part -- but only slight.
FAs probably made more sense in previous generations when (1.) personal taxes tended to be complicated before a couple of rounds of simplifications in the 80s, 00s, and 10s; (2.) shopping for financial products on your own was more difficult and offered much less variety and transparency than now; and (3.) people did not have the computational and informational resources that all of us have now with computers.
The world where they were needed is becoming a bygone age.
I tend to think the people who have enough money where an FA might conceivably help them have at least a baseline level of financial literacy. Or, if not, they are smart enough and organized enough to seek out the same from the multifaceted resources on the Internet or from friends/family.
It does not take a lot of financial horsepower to open up an S&P 500 index fund nowadays.
If somebody really wants an FA, well, it is their money and they can do what they like with it. I just do not see the value proposition nowadays when so many quality free resources are available.
Assuming it was for a sales meeting, with a client, or part of a client matter, then you should be fine.
We don't use an FA today, but if something were to happen to me I would like my wife to use an FA to get things set up for her. Not because she isn't smart enough or capable enough, but mostly because things get more complex if I were to die. Balancing paying down farm debts vs investing, setting up withdrawals annually to cover living expenses that I am covering today, etc are all more complex than our current goals of invest, re-invest, and grow it for later.
