FINANCIAL FOCUS – What Should You Do With an Inherited IRA?

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Individual Retirement Accounts (IRAs) are quite popular. At the end of 2017, investors owned nearly $9 trillion in IRA assets, according to the Investment Company Institute, a trade association of U.S. investment companies. Given these numbers, it probably wouldn’t be surprising if you inherited an IRA someday. But what should you do with it?

First of all, you’ll need to be aware of some basic rules. If your parent, or anyone other than your spouse, leaves you a traditional IRA – one in which contributions are typically tax-deductible and earnings can grow tax-deferred – you can transfer the money into an “inherited IRA,” from which you’ll need to take at least a minimum amount of money – technically called a “distribution” – each year, based on your life expectancy. These distributions are taxable at your regular income tax rate. If you’ve inherited a Roth IRA, you also must take these minimum payouts, but the amounts won’t count as taxable income, because your parents, or whoever left you the IRA, already paid taxes on the contributions that went into it. (To make sure you fully understand all the guidelines on distributions and taxation of inherited IRAs, consult with your tax advisor.)

It’s also important to understand how your inherited IRA will fit into your overall financial strategy. Consequently, you’ll need to address these questions:

  • How much should I take out each year? As mentioned above, you must take a distribution of at least a minimum amount from your inherited IRA each year – if you don’t, you may be subject to a 50% penalty on the amount you should have taken. But you can take out more than the minimum. In deciding how much to take, you’ll need to evaluate a few factors. First, of course, is whether you need the extra money to help support your regular cash flow. It’s possible you have other pools of income from which to draw, and, in some cases, it may be advantageous for you to tap these sources first. Another consideration is taxes – if you’ve inherited a traditional IRA, the more you take out each year, the bigger your tax bill may be.
  • Should I keep the same investments? Inheriting an IRA doesn’t mean you’re stuck with the original account owner’s investment choices. You can change the investments to align with your goals and risk tolerance, both of which may change over time.
  • How does the inherited IRA fit in with my overall financial strategy? You’ll need to consider how your newly inherited IRA fits in to the “big picture” of your financial strategy. Are you adding redundancies? If you keep the inherited IRA largely intact, how will it affect your current investment mix? Could the added income from required distributions change your retirement calculations or even enable you to retire earlier? You may want to consult with a financial professional about these and other questions related to your inherited IRA.

The person who left you an IRA worked hard for that money and thought enough of you to pass it on. Consequently, you’ll want to respect this inheritance – and get the most out of it for as long as you can.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Marques Young
Edward Jones Investments
8001 Centerview Parkway, Suite 112
Cordova, TN 38018
Office: (901) 751-0634
Email: marques.young@edwardjones.com
Member SIPC

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FINANCIAL FOCUS – Help Protect Vulnerable Family Members from Scam Artists

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If you have older family members whose cognitive functions or decision-making abilities have declined, or who are lonely or recently widowed, you might need to help protect them against financial scams. What steps should you take?

First of all, try to gain a good sense of their overall financial activity. Look for red flags, such as a reluctance to discuss money matters, consistently unpaid bills, unexplained withdrawals, mysterious wire transfers or a sudden need to purchase large quantities of gift cards. And watch out for new “best friends” or caretakers who show an unusual interest in your loved one’s finances.

Whether or not you’ve observed any of these activities, you can help your elderly family members by making these moves:

  • Have checks (such as Social Security payments) directly deposited. You can help your family members avoid a lot of potential trouble by having their checks deposited directly into their bank accounts.
  • Seek permission to become a joint account owner. By becoming a joint account owner on your elderly family members’ checking and savings accounts, you can review statements for suspicious activity. Of course, your loved ones may be initially reluctant to add your name, but if you have a good relationship with them, you should be able to explain the benefits.
  • Shred bank statements, credit card offers and notices of lottery or sweepstakes winnings. One of the most useful gifts you can give to your elderly family members may be a shredder. Encourage them to use it to shred old bank statements, credit card offers and other financial documents.
  • Get on a “do not call” list. Telephone scammers are persistent and devious. By registering your family members’ house and cell phones at www.donotcall.gov, you may be able to reduce their exposure to unwanted calls.
  • Obtain power of attorney. By creating a power of attorney, your loved ones can designate you or another trusted relative or friend to assist with their finances now – for day-to-day assistance and protection from scammers – and later, should they become incapacitated. Again, you will need to employ some sensitivity when discussing this issue.
  • Check references of caretakers. As mentioned above, some caretakers are, unfortunately, dishonest. Before you hire one, check out this person’s references. And even when you do, be careful – scam artists have been known to use accomplices as references, so you will need to be thorough in your research and questions.
  • Get to know your family members’ financial advisors. If possible, become acquainted with your older family members’ financial advisors. Any reputable advisor will welcome a connection with their clients’ loved ones. And if you are involved in any estate plans, this multi-generational relationship will prove beneficial for everyone.
  • Ask to meet any new “friends” they have met online. When someone is lonely, they become vulnerable to online friendships. Sometimes, these new friends make promises of meeting, but never show – and then they suddenly need money for one reason or another.

It can be challenging to guard against all threats posed by the scammers of the world. But by staying alert and taking the appropriate preventive actions, you may be able to help safeguard your loved ones’ financial security.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Marques Young
Edward Jones Investments
8001 Centerview Parkway, Suite 112
Cordova, TN 38018
Office: (901) 751-0634
Email: marques.young@edwardjones.com
Member SIPC

marques-young

FINANCIAL FOCUS – Work Toward Your Own Financial Independence Day

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We’re getting close to the Fourth of July, our national Independence Day. This celebration may get you thinking of the many freedoms you enjoy. But have you thought of what you might need to do to attain financial freedom?

Your first step is to define what financial independence signifies to you. For many people, it means being able to retire when they want to, and to enjoy a comfortable retirement lifestyle. So, if this is your vision as well, consider taking these steps:

  • Pay yourself first. If you wait until you have some extra money “lying around” before you invest for retirement, you may never get around to doing it. Instead, pay yourself first. This actually is not that hard to do, especially if you have a 401(k) or other employer-sponsored retirement plan, because your contributions are taken directly from your paycheck, before you even have the chance to spend the money. You can set up a similar arrangement with an IRA by having automatic contributions taken directly from your checking or savings account.
  • Invest appropriately. Your investment decisions should be guided by your time horizon, risk tolerance and retirement goals. If you deviate from these guideposts – for instance, by taking on either too much or too little risk – you may end up making decisions that aren’t right for you and that may set you back as you pursue your financial independence.
  • Avoid financial “potholes.” The road to financial liberty will always be marked with potholes you should avoid. One such pothole is debt – the higher your debt burden, the less you can invest for your retirement. It’s not always easy to lower your debt load, but do the best you can to live within your means. A second pothole comes in the form of large, unexpected short-term costs, such as a major home or auto repair or a medical bill not fully covered by insurance. To avoid dipping into your long-term investments to pay for these short-term costs, try to build an emergency fund containing six months’ to a year’s worth of living expenses, with the money kept in a liquid, low-risk account.
  • Give yourself some wiggle room. If you decide that to achieve financial independence, you must retire at 62 or you must buy a vacation home by the beach, you may feel disappointed if you fall short of these goals. But if you’re prepared to accept some flexibility in your plans – perhaps you can work until 65 or just rent a vacation home for the summer – you may be able to earn a different, but still acceptable, financial freedom. And by working a couple of extra years or paying less for your vacation home expenses, you may also improve your overall financial picture.

Putting these and other moves to work can help you keep moving toward your important goals. When you eventually reach your own “Financial Independence Day,” it may not warrant a fireworks display – but it should certainly add some sparkle to your life.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Marques Young
Edward Jones Investments
8001 Centerview Parkway, Suite 112
Cordova, TN 38018
Office: (901) 751-0634
Email: marques.young@edwardjones.com
Member SIPC

marques-young

FINANCIAL FOCUS – Saying “I Do” Might Mean “I Can’t” for Roth IRA

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June is a popular month for weddings. If you are planning on tying the knot this month, it’s an exciting time, but be aware that being married might affect you in unexpected ways – including the way you invest. If you and your new spouse both earn fairly high incomes, you may find that you are not eligible to contribute to a Roth IRA.

A Roth IRA can be a great way to save for retirement. You can fund your IRA with virtually any type of investment, and, although your contributions are not deductible, any earnings growth is distributed tax-free, provided you don’t start withdrawals until you are 59-1/2 and you’ve had your account at least five years. In 2018, you can contribute up to $5,500 to your Roth IRA, or $6,500 if you’re 50 or older.

But here’s where your “just married” status can affect your ability to invest in a Roth IRA. When you were single, you could put in the full amount to your Roth IRA if your modified adjusted gross income (MAGI) was less than $120,000; past that point, your allowable contributions were reduced until your MAGI reached $135,000, after which you could no longer contribute to a Roth IRA at all. But once you got married, these limits did not double. Instead, if you’re married and filing jointly, your maximum contribution amount will be gradually reduced once your MAGI reaches $189,000, and your ability to contribute disappears entirely when your MAGI is $199,000 or more.

Furthermore, if you are married and filing separately, you are ineligible to contribute to a Roth IRA if your MAGI is just $10,000 or more.

So, as a married couple, how can you maximize your contributions? The answer may be that, similar to many endeavors in life, if one door is closed to you, you have to find another – in this case, a “backdoor” Roth IRA.

Essentially, a backdoor Roth IRA is a conversion of traditional IRA assets to a Roth. A traditional IRA does not offer tax-free earnings distributions, though your contributions can be fully or partially deductible, depending on your income level. But no matter how much you earn, you can roll as much money as you want from a traditional IRA to a Roth, even if that amount exceeds the yearly contribution limits. And once the money is in the Roth, the rules for tax-free withdrawals will apply.

Still, getting into this back door is not necessarily without cost. You must pay taxes on any money in your traditional IRA that hasn’t already been taxed, and the funds going into your Roth IRA will likely count as income, which could push you into a higher tax bracket in the year you make the conversion.

Will incurring these potential tax consequences be worth it to you? It might be, as the value of tax-free withdrawals can be considerable. However, you should certainly analyze the pros and cons of this conversion with your tax advisor before making any decisions.

In any case, if you’ve owned a Roth IRA, or if you were even considering one, be aware of the new parameters you face when you get married. And take the opportunity to explore all the ways you and your new spouse can create a positive investment strategy for your future.

Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Marques Young
Edward Jones Investments
8001 Centerview Parkway, Suite 112
Cordova, TN 38018
Office: (901) 751-0634
Email: marques.young@edwardjones.com
Member SIPC

marques-young

FINANCIAL FOCUS – What Should You Look for in an Annual Financial Review?

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Given the complexities of the investment world, you might consider working with a financial professional to help you move toward your goals, such as a comfortable retirement. You’ll want to establish good communication with whomever you choose, and you should meet in person at least once a year to discuss your situation. At these annual reviews, you’ll want to cover a variety of topics, including these:

  • Your portfolio’s progress – Obviously, you will want to discuss how well your investments are doing. Of course, you can follow their performance from month to month, or even day to day, by reviewing your investment statements and online information, but at your annual meeting, your financial professional can sum up the past year’s results, highlight areas that have done well or lagged, and show you how closely your portfolio is tracking the results you need to achieve your long-term goals.
  • Your investment mix – Your mix of investments – stocks, bonds, government securities and so on – helps determine your success as an investor. But in looking at the various investments in your portfolio, you’ll want to go beyond individual gains and losses to see if your overall mix is still appropriate for your needs. For example, is the ratio of stocks to bonds still suitable for your risk tolerance? Over time, and sometimes without you taking any action, this ratio can shift, as often happens when stocks appreciate so much that they now take up a larger percentage of your portfolio than you intended – with a correspondingly higher risk level. If these unexpected movements occur, your financial professional may recommend you rebalance your portfolio to align it more closely with your goals and risk tolerance.
  • Changes in your family situation – A lot can happen in a single year. You could have gotten married, divorced or remarried, added a child to your family or moved to a new, more expensive house – the list can go on and on. And some, if not all, of these moves could certainly involve your financial and investment pictures, so it’s important to discuss them with your financial professional.
  • Changes in your goals – Since your last annual review, you may have decided to change some of your long-term goals. Perhaps you no longer want to retire early, or you’ve ruled out that vacation home. In any case, these choices may well affect your investment strategies, so it’s wise to discuss them.
  • Changes in the investment environment – Generally speaking, it’s a good idea to establish a long-term investment strategy based on your individual goals, risk tolerance and time horizon, and stick with this basic strategy regardless of the movements of the financial markets or changes in the economy. Still, this doesn’t mean you should never adjust your portfolio in response to external forces. For instance, if interest rates were to rise steadily over a year’s time, you might want to consider some changes to your fixed-income investments, such as bonds, whose value will be affected by rising rates. In any case, it’s another thing to talk about during your annual review.

These aren’t the only elements you may want to bring up in your yearly review with your financial professional – but they can prove to be quite helpful as you chart your course toward the future.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Marques Young
Edward Jones Investments
8001 Centerview Parkway, Suite 112
Cordova, TN 38018
Office: (901) 751-0634
Email: marques.young@edwardjones.com
Member SIPC

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FINANCIAL FOCUS – Financial Gifts for Your Adult Children

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Mother’s Day is almost here. If you’re a mother with grown children, you might receive flowers, candy, dinner invitations or some other type of pleasant recognition. However, you might find that you can get more enjoyment from the holiday by giving, rather than receiving. The longest-lasting gifts may be financial ones – so here are a few moves to consider:

  • Contribute to your child’s IRA. If your children have earned income, they are eligible to contribute to an IRA, which offers tax benefis and an almost unlimited array of investment options. You can’t contribute directly to another person’s IRA, but you can write your child a check for that purpose. This could be a valuable gift, as many people can’t afford to contribute the maximum yearly amount, which, in 2018, is $5,500, or $6,500 for those 50 or older.
  • Give gifts of stock. You know your children pretty well, so you should be familiar with the products they buy. Why not give them some shares of stock in the companies that make these products? Your children will probably enjoy being “owners” of these companies, and if they weren’t that familiar with how the financial markets work, having these shares in their possession may greatly expand their knowledge and lead to an even greater interest in investing.
  • Donate to a charity in your child’s name. You might want to donate to a charitable organization that your child supports. In years past, such a donation might have earned you a tax deduction, but the new tax laws, which include a much higher standard deduction, may keep many people from itemizing. Still, it’s possible for a charitable gift to provide you with a tax benefit, depending on your age. If you’re 70 ½ or older, you must start taking withdrawals from your traditional IRA and your 401(k) or similar employer-sponsored plan, but by moving the withdrawal directly to a qualified charitable group, the money won’t count as part of your adjusted gross income, so, in effect, you can get a tax break from your generosity.
  • Review your estate strategy. Like virtually all parents, you’d probably like to be able to leave some type of legacy to your children, and possibly your grandchildren, too. So, if you haven’t already started working on your estate strategy, consider using Mother’s Day as a launching point. At the very least, you’ll want to write your will, but you may need much more than that, such as a living trust, a durable power of attorney and other documents. And don’t forget to change the beneficiary designations on your life insurance and retirement accounts if you’ve experienced a major life change, such as divorce or remarriage. These designations are powerful and can even supersede whatever instructions you might have left in your will. As you can guess, estate planning can be complex, so you almost certainly will want to work with a legal professional to get your arrangements in order.

Mother’s Day is a good opportunity for your children to show their love for you, and you can do the same for them by helping bolster their long-term security through financial gifts and legacy planning.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Marques Young
Edward Jones Investments
8001 Centerview Parkway, Suite 112
Cordova, TN 38018
Office: (901) 751-0634
Email: marques.young@edwardjones.com
Member SIPC

marques-young

FINANCIAL FOCUS – Here’s a Checklist for Changing Jobs

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A few generations ago, it was not uncommon for workers to stick with a single job for their whole careers. But for many of us today, frequent job changes are a fact of life: The average employee tenure is just over four years, according to the Bureau of Labor Statistics. So, assuming you’re going to switch jobs a few times, you’ll want to be prepared. Here’s a checklist of things you can do to smooth these transitions and help your financial situation:

__Build an emergency fund. Some of your job changes may be involuntary, so you’ll want to have a cash cushion handy – just in case. One smart move would be to build an emergency fund, containing three to six months’ worth of living expenses, with the money kept in a liquid, low-risk account.

__Consider your options for your former employer’s 401(k) plan. If you had a 401(k) plan with your former employer, you have three main options: You could leave your money in the plan, if the employer allows it; you could move the money into your new employer’s plan, if permitted; or you could roll the funds over to an IRA. You’ll want to weigh the “pros” and “cons” of these choices carefully before making a decision.

__Choose investments from your new retirement plan. If your new employer offers a 401(k) or similar plan, you’ll need to choose the investments within the plan that are most appropriate for your goals, risk tolerance and time horizon. Contribute as much as you can afford to the plan, and consider increasing your contributions every time your salary goes up.

___Make sure you’ve got health insurance. The health insurance offered by your new employer may not begin the minute you start your job. Given the high costs of medical care, you’ll need to make sure you are protected until your coverage kicks in. So, for that interim period, you may need to consider the federal health insurance marketplace, COBRA continuation coverage or private medical insurance. You might also be eligible to be covered under your spouse’s health insurance. And you may want to learn what your options are for health savings accounts (HSAs), if available.

___Review your new benefits packageand take steps to fill gaps. Your new benefits package may include life and disability insurance, but these group policies may not be enough to fully protect you and your family. A financial professional can help you quantify your protection and insurance needs and offer guidance on how much coverage you may require.

__Understand your income tax considerations. Getting a new job may involve income tax implications, such as changes in your tax bracket, severance pay, unused vacation and unemployment compensation. And if you are thinking of exercising stock options, be aware that this, too, can be a taxable event. Finally, if you have to move to take a new job, you may incur some relocation and job hunting expenses that could be deductible. You will need to discuss all these issues with your tax professional.

Starting a new job can be exciting – and challenging. But you may be able to make your life easier by putting the above suggestions to work.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Marques Young
Edward Jones Investments
8001 Centerview Parkway, Suite 112
Cordova, TN 38018
Office: (901) 751-0634
Email: marques.young@edwardjones.com
Member SIPC

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FINANCIAL FOCUS – Keep Your Investment “Ecosystem” Healthy

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April 22 is Earth Day. First observed in 1970, Earth Day has evolved into an international celebration, with nearly 200 countries holding events to support clean air, clean water and other measures to protect our planet. As an investor, what lessons can you learn from this special day?

Consider the following:

  • Avoid “toxic” investment moves. Earth Day events show us how we can help keep toxins out of our land, air and water. And if you want to keep your investment ecosystem healthy, you need to avoid making some toxic moves. For example, don’t chase after hot stocks based on tips you may have heard or read. By the time you learn about these stocks, they may already have cooled off – and they may not even be appropriate for your goals or risk tolerance. Another toxic investment move involves trying to “time” the market – that is, buying investments when they reach low points and selling them at their peaks. It’s a great theory, but almost impossible to turn into reality, because no one can really predict market highs and lows – and your timing efforts, which may involve selling investments that could still help you – may disrupt your long-term strategy.
  • Reduce, reuse, recycle. “Reduce, reuse, recycle” is a motto of the environmental movement. Essentially, it’s encouraging people to add less stuff to their lives and use the things they already have. As an investor, you can benefit from the same advice. Rather than constantly buying and selling investments in hopes of boosting your returns, try to build a portfolio that makes sense for your situation, and stick with your holdings until your needs change. If you’re always trading, you’ll probably rack up fees and taxes, and you may well end up not even boosting your performance. It might not seem exciting to purchase investments and hang on to them for decades, but that’s the formula many successful investors follow, and have followed.
  • Plant “seeds” of opportunity. Another Earth Day lesson deals with the value of planting gardens and trees. When you invest, you also need to look for ways to plant seeds of opportunity. Seek out investments that, like trees, can grow and prosper over time. All investments do carry risk, including the potential loss of principal, but you can help reduce your risk by owning a mix of other, relatively less volatile vehicles, such as corporate bonds and U.S. Treasury securities. (Keep in mind, though, that fixed-rate vehicles are subject to interest-rate risk, which means that if interest rates rise, the value of bonds issued at a lower rate may fall.)
  • Match your money with your values. Earth Day also encourages us to be conscientious consumers. So, when you support local food growers, you are helping, in your own way, to reduce the carbon footprint caused in part by trucks delivering fruits and vegetables over long distances. Similarly, you might choose to include socially responsible investing in your overall strategy by avoiding investments in certain industries you find objectionable, or by seeking out companies that behave in a manner you believe benefits society.

Earth Day is here, and then it’s gone – but by applying some of its key teachings to your investment activities, you may improve your own financial environment.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Marques Young
Edward Jones Investments
8001 Centerview Parkway, Suite 112
Cordova, TN 38018
Office: (901) 751-0634
Email: marques.young@edwardjones.com
Member SIPC

marques-young

FINANCIAL FOCUS – Time for Financial “Spring Cleaning”

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The days are longer and the temperatures are warmer – so it must be spring. For many of us, that means it’s time for some spring cleaning. But why stop with sprucing up your living space? This year, consider extending the “spring cleaning” concept to your financial environment, too.

How can you tidy your finances? Here are some suggestions:

  • “De-clutter” your portfolio. As you go through your home during your spring cleaning rounds, you may notice that you’ve acquired a lot of duplicate objects – do you really need five mops? – or at least some things you can no longer use, like a computer that hasn’t worked since 2010. You can create some valuable space by getting rid of these items. And the same principle can apply to your investment portfolio, because over the years you may well have acquired duplicate investments that aren’t really helping you move toward your goals. You may also own some investments, which, while initially fitting into your overall strategy, no longer do so. You could be better off by selling your “redundant” investments and using the proceeds to purchase new ones that will provide more value.
  • Get organized. During your spring cleaning, one of your key goals may be to get organized. So you might want to rearrange the tools in your garage or establish a new filing system in your home office. Proper organization is also important to investors – and it goes beyond having your brokerage and 401(k) statements in nice neat piles. For example, you may have established IRAs with different financial services companies. By moving them to one provider, you may save some fees and reduce your paperwork, but, more important, you may find that such a move actually helps you better manage your investments. You’ll know exactly where your money is going, and it could be easier to follow a single investment strategy. Also, with all your IRAs in one place, it will be much easier for you to manage the required minimum distributions you must start taking when you turn 70-1/2. (These distributions are not required for Roth IRAs.)
  • Protect your family’s financial future. When cleaning up this spring, you may notice areas of concern around protecting your home – perhaps there’s a crack in your window, or your fence is damaged or part of your chimney is crumbling. Your financial independence – and that of your family – also needs protection. Is your life insurance sufficient to pay for your mortgage, college for your kids and perhaps some retirement funds for your spouse? Do you have disability insurance that can provide you with some income if you become ill or injured and can’t work for a while? Have you considered the high costs of long-term care, such as an extended nursing home stay? A financial professional can help you determine if your insurance coverage is adequate for all these needs.

Consider putting these spring cleaning suggestions to work. They may help you keep your financial house in good shape for all the seasons yet to arrive.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Marques Young
Edward Jones Investments
8001 Centerview Parkway, Suite 112
Cordova, TN 38018
Office: (901) 751-0634
Email: marques.young@edwardjones.com
Member SIPC

marques-young

FINANCIAL FOCUS – Make Sure You Choose the Right Financial Professional

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These days, you have more options than ever – including so-called robo-advisors. Robo-advisors typically use algorithms to assemble investment portfolios, with little to no human supervision, after customers answer questions online. Generally, robo-advisors are fairly cheap, and their recommendations are usually based on sound investment principles such as diversification.

However, when considering a robo-advisor, you should determine if an algorithm can address your needs as well as a human being – someone who actually becomes familiar with your life and all aspects of your financial situation. Furthermore, a robo-advisor can’t really handle the new wrinkles that will inevitably pop up, such as when you change jobs, and you’d like to know what to do with your 401(k) from your previous employer – leave the money in that employer’s plan,  transfer the account to the new employer’s plan or roll it over to an IRA. You probably couldn’t receive a personalized evaluation of your options, based on your individual goals and circumstances, from a robo-advisor.

So, if you decide to work with an individual financial professional, what should you look for from this person? Here are a few questions you might want to ask:

  • Who is your typical client? By asking this question, you may get a sense of whether a particular financial advisor has experience working with people in your financial situation and with goals similar to yours.
  • What’s important to you? The quality of your relationship with your financial advisor is important – after all, you may be working with this person for decades – and he or she likely will be involved with many of your most personal decisions. Consequently, you’ll want to work with someone you connect with on an individual level, as well as a professional one. So, if an advisor seems to share your values and appears to have a good rapport with you, it could be a positive sign for the future.
  • How will we communicate – and how often? If you’re interviewing candidates, ask them how often they will meet with you in person. At a minimum, an advisor should see you once a year to review your progress and suggest changes. Will they also call or e-mail you with suggestions throughout the year? Are you free to contact them whenever you like? Will you get a real, live person every time you call? Will they send out newsletters or other communications to update you on changes in the investment

world? If so, can you see some samples of the communication vehicles they send to clients?

  • How do you get compensated? Some financial advisors work on a fee basis, some on commissions, and some use a combination of both. Find out how your advisor will be compensated, when you’ll need to make payments and how much you’ll be expected to pay.

By asking the right questions, you should get a good sense of whether a particular advisor is right for you. And since this likely will be one of the most important professional relationships you have, you’ll want a good feeling about it, right from the beginning.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Marques Young
Edward Jones Investments
8001 Centerview Parkway, Suite 112
Cordova, TN 38018
Office: (901) 751-0634
Email: marques.young@edwardjones.com
Member SIPC

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