financial advisor Los Angeles

It’s not difficult to believe that the COVID 19 has impacted our lives in many ways, while some are fruitful. According to the reports, personal savings have surged by 26%. The truth is, that the pandemic has reminded us of the importance of having a budget.

Apart from medical, with layoffs, reduced work hours/salary cuts, and overall less income, many have realised the importance of maintaining an emergency fund.  They have realised the importance of segmenting the needs and wants is the first step in budgeting.

The increased saving rate also reflects how people have become insightful and have started investing.  Indeed, every household is able to construct comprehensive financial planning (with a little help, of course).

Here are some key guidelines to becoming a smart investor from, Samuel Rad, one of the best financial advisors in Los Angeles.


Any Investment involves risk


The logging hurdle is enormous if you want to become a smart investor over time. With an economic crisis making the stock market volatile, the time and energy to understand the various investment vehicles like traditional vs non-traditional ones are frightening and nearly unattainable without significant knowledge of financial terms. If you’re confined to traditional avenues like municipal bonds, as well as the high tax that comes with it, it is hard to generate the return you deserve from your hard-earned money.


Hire an Advisor for Financial planning


Everyone is aware of financial stress and wants action, therefore the need for financial advice has increased more than previously.


If you are self-centred and would like to go by instinct, you will most likely fail miserably. There are many fraudulent schemes out there, boasting of unreasonable high returns, which inarguably looks attractive but is nothing less than a trap. Even being intelligent as anyone else in the game, will not help in discerning unless you have a thorough knowledge of the latest policies in the ever changing financial landscape.


Use of self directed IRAs


Everybody needs to plan for retirement, regardless of how much money they have saved. In order to ensure the strategic growth of their assets, affluent individuals may need to think differently than most about retirement savings.

Those familiar with traditional IRAs know that they can invest in stocks, bonds, and mutual funds but by utilising alternative investments through self-directed IRAs, you can potentially allow millions of dollars to be accumulated for retirement.

With Self-directed IRAs you can make use of non-traditional investments and diversify your wealth portfolio and decrease the risk. When your financial goals are clearly defined, you have the financial freedom to invest in real estate, precious metals, cryptocurrencies, livestock, private company stock and renewable energy.

Whether you decide on real estate investment or putting money in annuities, there are numerous variables to consider before deciding whether or not they are high-yielding or not.  Some investments like real estate need more scrutiny and you would want to investigate how this company operates internally, their USP and market valuation.

Keep an eye for tax saving


Minimising taxes is one of the most important aspects of a viable financial planning strategy. After all, such is the income tax bracket, when you’re earning more, you’ll also be paying out a lot more to the government.

The financial system is far more complex than we realise. However, you can rely on a certified financial planner, if you are not prepared and experienced enough to deal with the many nuances of tax saving schemes.  It may take years for some people to understand the various income tax brackets, or it may take less time. Whatever the case may be, you should consult with a financial advisor to estimate your taxable income as they are aware of the latest government offerings that you can implement to save your hard-earned money.

A certified financial planner will be able to examine your financials, create a plan, and help you implement strategies to make smart investments so that you can achieve your financial goals in due time.

These strategies should not meet your financial goals while you’re alive but also let you leave a hefty inheritance for your heirs once you pass away.

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