Ed Mahaffy | TaxConnections

28 Aug 2020

Ask Ed: Financial Planning Questions And Answers

TaxConnections Friday Financial Planning Series: Dear Ed

As the CEO of www.taxconnections.com, I have been searching for a top expert in Financial Planning. Once I read Ed Mahaffy’s book titled “How To Select A Financial Advisor: The Least You Should Know”, then interviewed him, then reviewed his video library, I knew we had the right person for this special financial planning series.

On Fridays, TaxConnections will present the questions most often asked of a Financial Planner. Although the majority of his clients have in excess of 1M in assets, Ed has made himself available to answer anyone’s questions. Please leave your financial planning questions in the comments section below and we will ensure Ed Mahaffy receives them to post answers in TaxConnections Friday Feature Series on Financial Planning. Welcome Ed Mahaffy, CFP!

Ask Ed: Financial Planning Questions And Answers

QUESTION: Should annuities be purchased in an IRA?

ANSWER: No. The retirement account already provides tax deferral. Annuities also provide tax deferral however you pay dearly for this feature as your investment is subject to hefty operating expenses and hefty surrender charges imposed by the issuer to ensure that it recovers the hefty commissions it advanced to your financial advisor. Whenever a financial recommends purchasing an annuity in your IRA it should be a red flag and you should consider another financial advisor.

Written by Ed Mahaffy | Posted in Ask Ed: Financial Planning Questions And Answers • Comprehensive Financial Planning

27 Aug 2020

How To Select A Financial Advisor: The Least You Should Know (Part 4 In eBook Series)

Chapter 2:
The Least You Should Expect

What are the basic credentials, skills, and policies that you should expect from your financial advisor?

1. A clean disciplinary background. Ask the advisor which organization regulates his conduct: the Securities and Exchange Commission or the Financial Industry Regulatory Authority. Then, go to the appropriate website (www.sec.gov or www.finra.org), and see if the advisor has faced any disciplinary proceedings.

2.A full-time fiduciary obligation to always act in your best interests. A fiduciary is a person with a legal requirement to always act in your best interests.

3. Use of transparent investment vehicles that clearly identify the costs of ownership.

4. A reputation for honesty, integrity, accessibility, accountability, and confidentiality that is confirmed by several long-standing clients.

Written by Ed Mahaffy | Posted in Arkansas • How To Select A Financial Advisor • Little Rock

26 Aug 2020

How To Select A Financial Advisor: The Least You Should Know (Part 3 In eBook Series)

Chapter 1: Doing Your Homework

Many people are uncomfortable managing their own investments. They may be overwhelmed by the myriad of unfamiliar terms and investment vehicles, and they may lack the confidence to select their own investments.

Selecting a financial advisor can be equally difficult. There are many different choices—from the large publicly held Wall Street brokerage firms (also known as “wire-houses”) with well-known brand names and offices on every corner, to the small independent boutiques comprised of financial planners and/or investment managers. As the industry has expanded in the last 30 years, financial advisors have adopted many job titles, and they can earn many different credentials. Distinguishing among all the choices of firms and financial advisors can be bewildering—like sorting through all the makes, models, and options on a new vehicle. At least with vehicles, it’s easy to obtain an apples-to-apples comparison. Not so with financial advice.

Written by Ed Mahaffy | Posted in Arkansas • Little Rock • TaxConnections

25 Aug 2020

How To Select A Financial Advisor: The Least You Should Know (Part 2 In eBook Series)

How To Select A Financial Advisor ( Part 2 In eBook Series)

WHO’S WHO

In this book, all broker-dealers are referred to as “brokerage firms.” All financial services professionals are referred to as “financial advisors,” and to simplify for the reader, will be referred to as “he” or “him.” The term does not distinguish among retail brokers, independent brokers, investment advisors or insurance agents licensed to sell securities. “Adviser” appears only when
referencing the Investment Advisers Act of 1940.

However, industry professionals understand that retail brokers, independent brokers, and independent investment advisors operate very differently. Those crucial differences will be explained in detail in this book. Explaining those differences—in compensation, in motivation, in regulation, in expertise— is at the heart of this book. With that information, the average person can make an informed decision.

Written by Ed Mahaffy | Posted in Arkansas • How To Select A Financial Advisor • Little Rock

21 Aug 2020

How To Select A Financial Advisor: The Least You Should Know ( Part 1 In eBook Series)

How to Select A Financial Advisor - Ed Mahaffy

FOREWORD
In 2006, Ed Mahaffy made a career-changing decision. He decided to abandon the hybrid commission and fee-based investment advice model he had followed for years to become a Fee-Only investment advisor—charging his clients based on their assets-under-management. In Ed’s mind, all individual investors must make a choice that comes down to two key questions:

• Do you wish to receive financial recommendations from a financial advisor and firm that have no fiduciary obligation, and whose recom- mendations may be influenced by commissions?

• Or would you rather pay an advisory fee for ongoing financial advice from a person and firm legally obligated to act in your best interests?

These questions seem pretty straightforward—who wouldn’t want to be guided by someone who must place their clients’ interests first and foremost? But what kind of advisor must do that?
That’s the challenge. Investors can’t answer these questions without understanding how the person who guides them is compensated. That’s a tall order when trying to figure out how the system works, what the pitfalls are, and what questions to ask.

Written by Ed Mahaffy | Posted in Arkansas • Ed Mahaffy - Certified financial Planner • How To Select A Financial Advisor • Little Rock