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Duties of a Financial Advisor

Duties of a Financial Advisor | Aspect 2 College Students debt | Scoop.it
A financial advisor is responsible for asset management and financial planning. The following article explores the responsibilities and the duties of a financial advisor.
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8.  A financial advisor are responsible for understanding market conditions, compiling and analyzing socioeconomic data and advising clients on the best investment opportunity. They are expected to be suggest suitable investment alternatives if something were to fail such as a non expected recession.  They should be able to interpret what may happen in the stock market so they can advise there clients to invest in the right stock.  

9.  Investments such as mutual funds, stocks and bonds; or suggesting contributions to Individual Retirement Accounts (IRAs), retirement planning, real estate investment advice and many other services, come under responsibilities of a financial advisor.

Clients, who have a great deal of money and a long term  may be better-off investing in more risky assets.

10.  People with a short term investment horizon need to have enough liquidity to meet their financial obligations. For whatever reason a  person may choose not to invest in what he/she feels is a risky proposition. In this situation, the financial advisor should explain to the  investor the concept of risk and reward.  A person, who is in his/her late 40s and has two children will generally have 3 time horizons. One coinciding with his/her retirement and the other two with the children's college education. 

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Why Financial Planning is Important - NAPFA - The National Association of Personal Financial Advisors

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1.  56% of adults lack  budge and 40% are saving less money than in 2011.  39% of mortgage are underwater.  41% of Baby boomers do not have a will and 41% of Americans with kids do not have a will.  16% of Americans are confident their investments will increase in value and make a profit.  23% of Americans are scared about not having a comfortable amount of money for retirement.  In 1991 11% of workers expected to retire are age 65 now in 2012 that number has increase to 37%.

2.  2 in 5 adults rated themselves a C,D or F in having knowledge about there personal finance.   People can seek the guidance to help with financial needs.  They can help answer questions such as :  At what age can I retire? , What financial changes can i expect after marriage? , How can you plan for wedding, education, retirement
?  How much can I afford to pay for a house? , How much should I be saving each month to reach my short and long term goals 

3. US economy is expected to grow 3% a significant pickup for 1.9% last year.  The economy impacts policy and market mainly through headlines.  But if the market is down, its bound to go back up which is when you can make the most money.  Clients invest money in stock market and bond market so even if you think it looks good, the market moves fast and in unpredictable at times.  (crash of 2008).

4.  Influenced mostly by what is heard on the news.  If there is a crash you can only go up and that is the best time to invest.  

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FinAid | Saving for College

FinAid's Saving for College section
provides tools and information about the advantages and disadvantages of
qualified tuition plans (section 529 plans), Coverdell Education
Savings Accounts, and other options for college savings.
FinAid is the most comprehensive free resource for objective
and unbiased information about student financial aid.
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Taylor Solo's comment, March 4, 2014 8:40 AM
1. Children born now will face college costs that are 3 to 4 times current prices by the time they graduate high school. Parents should expect to pay at least half to two-thirds of their children's college costs. This money will come from savings, current income, loans, grants from the government. It is very vital that parents start saving for their children's education as soon as possible. The earlier you start saving, the more time your money will have to grow.
Taylor Solo's comment, March 4, 2014 8:43 AM
2. If you were to save $50 a month from the time they were born, its projected you would have about $20,000 by the time the child turns 17, (with a 7% return on investment). Saving $200 a month would make almost $80,000. A better outcome will come from investing rather than borrowing. In both situations you're setting aside a portion of your income to pay for college. However saving money accumulates interest, while when you borrow, you're paying the interest.
Taylor Solo's comment, March 4, 2014 8:45 AM
3. If you were to saving $200 a month for ten years at 7% interest would make $34,818.89. Borrowing the same amount at 6.8% interest with a ten year term would require payments of $400.70 a month. At 8.5% interest the payments increase to $431.70 a month. In other words if you choose to borrow instead of saving, in the end you paying 1.7 to 2.6 times as much per month.
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How To Pay For Retirement & College | Financial Advisor Steve Kitchen Grand Rapids Michigan

http://www.eminencefs.com The shaky economy and sickly housing market have prompted some parents to engage in risky financial behavior: raiding their retirem...
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Taylor Solo's comment, March 4, 2014 5:50 PM
10. The dollar is designed economically to lose money every year. But cost of living goes up. So essiantly people save money which is decreasing in price per year.
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Economics' Approach to Financial Planning | ESPlanner Inc.

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5.  Smooth your living standard, maximize your living standard, price your lifestyle choices in terms of your living standard, and protect your living standard are four strategies focus on the household’s living standard and increase consumption.  

6. For the saving side, this means moving resources from good times, when one is working and earning money, to bad times, when one is retired and earning nothing. In the insurance context, it means moving money from good times, when the house hasn’t burned down or the principal earner hasn’t died, to bad times, when these events happen. And in the investment context, it means diversifying one’s resources so that there is something to eat not only when the stock market booms, but also when it crashes.

7.  Over the past 130 years, there have been only a handful of periods in which the market's P/E has hit this level: 1901, 1928 to 1930, 1996 to 2002, and 2003 to 2007, just before the financial crisis. Each of those periods gave way to a ferocious bear market. The average annual real return for stocks is about 7%.

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Student Loan Debt $1 Trillion and Could Impact Economy

Student Loan Debt $1 Trillion and Could Impact Economy | Aspect 2 College Students debt | Scoop.it
Delinquencies on mortgages and credit cards are declining, but the number of student loans overdue continues to grow. The $1 trillion now owed by American students is rising and the student loan de...
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6.  American graduates owe $1.08 trillion, a 10 percent increase from 2012.  Student loan debt has grown 300 percent.  The class of 2012 has 7 out of 10 graduates with student loans, with an average amount owed of $29,400. 

 

7.  Debts are on the rise because  the cost of higher education keep rising.   However, incomes have barely been keeping pace with inflation, leaving more families in need of guidance. This where the extra help of a financial advisor comes into play.

 

8.  Before the recession, families often financed college with home equity loans. During the stock market boon, investments helped pay for college too. Since the stock and housing market declines, more students have been forced to use loans to pay tuition bills.   Financial advisors often recommend that total student debt accumulated not exceed the expected annual salary upon graduation. 

 

9.  That $1 trillion in student loan debt could have a huge impact on the economy and be felt for years.  Student loans can take 15 to 20 years to repay, impact future decisions like where to live, buying
 a house, discretionary money for daily living, and saving for retirement. 

 

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Do You Need a Financial Adviser? - US News

Do You Need a Financial Adviser? - US News | Aspect 2 College Students debt | Scoop.it
If, like most, you wonder how you'll manage, the right expert can help you slash your tab significantly
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Taylor Solo's comment, March 4, 2014 8:57 AM
4. The US average of 2011 college graduate with loans is likely to owe $27,000 in debt. Due to the rate of inflation, families are increasingly turning to financial advisors on how to spend there money wisely.
Taylor Solo's comment, March 4, 2014 8:57 AM
5. There are two types of 529 plans: prepaid tuition and college savings plans. 529 plans are either direct- or broker-sold. About 34 percent of 529 plans are started by parents whose children are between 5 and 10 years old. If parents choose to start early, this gives your account time to grow, and allows advisors to experiment with aggressive funds before shifting toward conservative options near there child's graduation time.