Posts by SmartAsset Team
Investing
What Are Treasury Notes?
Treasury Notes, commonly referred to as T-Notes, are medium-term securities issued by the U.S. government that play an important role in managing national debt and stabilizing the economy. These instruments offer a range of maturities, typically from 2 to 10 years, making them an attractive option for a variety of investors. Particularly during periods of… read more…
Advisor Resources
5 Sales Strategies for Financial Advisors
Financial advisors rely on different sales strategies to drive growth. These strategies focus on client acquisition and retention, thereby helping advisors identify and engage with potential clients, communicate value propositions effectively and differentiate themselves in a competitive market landscape. Here’s are five things to keep in mind when developing your own sales strategy. SmartAsset’s Advisor… read more…
Checking Account
Differences of a Cashier’s Check vs. Certified Check
A cashier’s check, backed by the issuing bank’s own funds, provides an ironclad guarantee that the payment will be honored, making it a go-to choice for transactions requiring absolute certainty. On the other hand, a certified check offers a slightly different form of security; the bank verifies the payer’s available funds and earmarks them specifically… read more…
Personal Finance
10 Personal Financial Planning Tips to Live By
Financial planning planning is a proactive approach to managing your finances and achieving long-term financial goals. By establishing a comprehensive plan, you can effectively allocate resources, prepare for significant life events and make informed decisions that support your overall financial well-being. Whether you’re saving for retirement, funding education expenses, or building an emergency fund, a… read more…
Taxes
What Are the Tax Implications for Withdrawing From Your IRA?
Managing your retirement savings effectively requires understanding the tax implications of withdrawing money from an individual retirement account (IRA). IRAs, whether traditional or Roth, offer unique tax advantages that can significantly impact long-term savings. However, understanding how withdrawals are taxed, the conditions under which penalties apply and the strategic maneuvers available to minimize financial strain… read more…
Investing
6 Tips to Achieve Long-Term Investment Success
The key to achieving long-term investment success will require you to develop a strategic investment plan that focuses on your specific financial goals, risk tolerance and time horizon. Here is a roundup of six common investing tips that can help you turn that goal into a reality. For hands-on help, a financial advisor can help… read more…
Investing
Differences of Investing vs. Speculating
Traditional investing takes a strategic approach to building wealth by focusing on long-term growth, risk management and diversification. Speculative investments, on the other hand, are often considered more alternative types of investing, such as collecting artwork. Let’s take a look at how you could incorporate both into a diversified portfolio. For personalized help with your own… read more…
Investing
How to Buy Fractional Shares
Fractional shares allow investors to purchase a piece of a stock or exchange-traded fund (ETF), even if they can’t afford a whole share. Fractional share trading is a lot like buying and selling whole shares of stock, requiring you to open a brokerage account, research potential stocks and then placing your order. If you’d rather… read more…
Investing
What Are Fractional Shares?
Fractional shares allow investors to purchase a portion of a stock or exchange-traded fund (ETF) for a fraction of the cost. This accessibility not only enables individuals with modest budgets to gain exposure to high-priced securities but also facilitates portfolio diversification, a cornerstone of sound investment strategy. By allocating capital across a broader spectrum of… read more…
Advisor Resources
Financial Advisor Sales Pitch Examples
The ability to quickly and effectively communicate your value as a financial advisor can make all the difference. A sales pitch is a strategic way to encapsulate your expertise and services in a brief, compelling narrative. Moreover, in situations where time is limited, such as networking events or chance encounters, a concise pitch could allow… read more…
Investing
How to Avoid Investment Fees
From management fees to load fees, the costs associated with investing can quietly chip away at your returns, often going unnoticed until they’ve compounded into a significant impact. The difference between a portfolio’s performance with and without these fees can be staggering over time, making it essential for investors to understand and manage these expenses… read more…
Personal Finance
3 Types of Inflation and How to Prepare
As prices climb and the cost of living increases, the question on many minds is how to safeguard their financial future against inflation. Understanding different types of inflation — demand-pull, cost-push and built-in — and how they impact purchasing power will help you strategize effectively. From investment diversification to energy-efficient practices and fixed-rate loans, the strategies… read more…
Credit Cards
What Is a Credit Limit and How Is It Determined?
Your credit limit is based on various factors, including creditworthiness, income, credit history and other financial obligations. Understanding these factors can help you maintain a healthy credit score and avoid the pitfalls of overborrowing. Here’s what you need to know. A financial advisor can help you create a plan to maximize your finances and reach long-term… read more…
Advisor Resources
How to Improve Your Financial Advisor Sales Process
Being a financial advisor today requires more than understanding your client’s financial picture. It now demands a mastery of client relationships and sales processes to attract clients and keep growing. As the financial landscape evolves, so too must the strategies employed by advisors to remain competitive and meet the ever-changing needs of their clients. Empathy and… read more…
Retirement
How to Avoid the Early Withdrawal Penalty on Your 401(k)
The IRS has strict rules regarding when you can withdraw money from a tax-deferred retirement account like a 401(k). Doing so before age 59 ½ can trigger an early withdrawal penalty on top of income taxes. However, the IRS has designated specific situations in which a 401(k) account owner can qualify for penalty-free early withdrawals,… read more…
Advisor Resources
What Is a Certified Personal Finance Counselor (CPFC)?
Certified personal finance counselors (CFPCs) are professionals trained to assist individuals in making informed money decisions, aiming to foster financial stability and growth. Advisors and other professionals working in the finance industry may pursue this credential to offer advice on budgeting, debt management, saving and basic investment concepts. Here’s a closer look at the CPFC… read more…
Retirement
6 Steps to Consider Immediately If You’re 55 With No Retirement Savings
When you find yourself later in life without any retirement savings, you can feel like you’ve made a mistake or that the amount you need to make up is too great to make a dent. However, there is plenty you can do to help your finances get back on track and help you maximize your… read more…
Financial Advisor
How to Achieve Retirement Security With a Financial Plan
Personal finance can be daunting, but with a well-crafted financial plan, you could map a course to help reach your financial goals with confidence. A financial plan is a comprehensive strategy that is tailored to your unique financial situation and encompasses budgeting, savings, investments, insurance and estate planning. Whether you’re preparing for major milestones or… read more…
Investing
5 Ways Monopolistic Competition Can Impact Your Investments
Monopolistic competition is a market structure that is characterized by many firms selling differentiated products. These can be similar but not identical, allowing each firm to have some degree of market power. By understanding how product differentiation, pricing strategies and marketing efficiency work, investors can gain insight into the risks and rewards associated with different… read more…
Checking Account
Pros and Cons of a Money Market Account
Money market accounts (MMAs) offer a unique blend of features that may appeal to savers looking for higher interest rates, liquidity and security. However, understanding the full spectrum of advantages and disadvantages associated with these accounts is important when evaluating different savings vehicles. Whether you’re considering a money market account for its higher interest rates,… read more…
Checking Account
3 Benefits of a Regional Bank vs. National Bank
When considering where to keep your financial assets, the choice between regional and national banks is a significant one. Regional banks are typically smaller in scale, offer a more localized banking experience and may even charge lower fees. They are often deeply embedded within the communities they serve, which can translate into a more personalized… read more…
Retirement
8 Ways to Protect Your Retirement Income
You’ll spend decades – if not your entire career – saving for retirement. But saving enough money is only a piece of the retirement planning puzzle. Protecting your retirement income against the test of time and an ever-changing economic landscape is equally critical. Whether it’s optimizing annuitized streams of income like Social Security, planning for… read more…
Mortgage
2024 Eligibility Requirements for VA Loans
Veterans Affairs (VA) loans provide a pathway for veterans, active-duty service members and reservists to achieve homeownership with favorable terms. VA loans are known for their no down payment requirement and no private mortgage insurance, making them an attractive option for those who have served or continue to serve in the military. However, prospective applicants… read more…
Mortgage
Comprehensive Guide to VA Loans
The Veterans Affairs loan program, established to honor American service members and veterans, provides a range of mortgage options designed to make this cornerstone of the American dream more attainable. Whether it’s buying a new home, refinancing an existing mortgage or making home improvements, the VA loan program offers current and former members of the… read more…
Mortgage
What Are the VA Loan Limits for 2024?
VA loan limits have changed over time. The 2024 updates reflect the current economic climate and housing market trends, which aim to ensure that the program remains relevant and beneficial. Whether you’re a veteran considering a home in a standard-cost area or a high-cost county, the VA loan limits could influence your borrowing capacity and… read more…