There are a lot of cliches floating around the investment world. “Stop earning money and start earning wealth” is one of the more popular and used phrases. The question of the day is, “what is really going on behind the suit and tie?” Let’s be real, anyone can wear a suit and sell something charming. However, there are a few things financial advisors are not telling their clients, and it is high time they find out what they are.

Tax Season

Most taxpayers have a less than complicated tax situation. Financial advisors always say that clients need to hire someone to help them out. That sentiment is true to a certain extent, but it is not true for everyone.

Those who can afford to file their taxes on their own should. It will save a lot of time and money in the process. Clients should still use a tax professional when the paperwork is far too complicated to handle on their own.

The Pros

Clients need to know the different levels of tax professionals. A CPA (Certified Public Accountant) is someone who is registered through the state they work and live in. They handle things mostly attached to audits and consulting.

A CFP (Certified Financial Planner) is someone who helps draft paperwork, including estate planning. A TA(Tax Attorney) is someone who operates from a specialized license. They will only step in when there is a dispute between the client and the IRS.

Keep in mind that every tax professional has their own set of expertise. That means that some of them are going to be somewhat limited in what they can do. In other words, Steven should not hire a tax attorney to file simple paperwork in his state. The tax attorney will only step in when there is a legal issue.

FYI: Every tax professional has their own educational background. Once again, it comes down to limitations. Some have to go through intense testing and others do not.

Bogus License?

Some people will claim they provide financial planning and advice. That said, it could just be a bogus line they sell. Clients should be very careful with who they hire and why.

Universal Background Checks

Universal background checks should happen when clients hire a financial person. There are two places a client should reference, the BBB and the Certified Financial Planning Board of Standards, Inc.

Clients who see issues with the license on these two sites should think twice about hiring the person. The information used for hire during an interview can be extrapolated to use in this context too.

The Gospel According To the Financial Guy

Clients should never take a Baltimore investment advisory at their word. They do not know everything. No one has the inside track on anything unless the client wants to deal with insider trading. FYI: That it is illegal. Martha Stewart some time in prison because of her carelessness with inside trading.

Clients who wish to establish something simple like a retirement account can visit an investment advisor. Most of that a client can do on their own. The financial guy is just there to help guide the way.

One More Point

No need to stay local. Clients can look outside their backyard to find an investment guy to help out. Clients can also visit the site below.

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