Ask Ed: Financial Planning Questions And Answers

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

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.

QUESTION: Why should I insist my financial advisor sign a fiduciary oath?

ANSWER: So that you know you are working with a person that is legally obligated to: always place their clients’ interests first, fully disclose all sources of compensation, and any potential conflicts of interest. ( A signed fiduciary oath may help prevent a scenario like the one described in question #1 from occurring in the first place.) NAPFA advisors are required to sign a fiduciary oath. (NAPFA.ORG)

QUESTION: How should my assets be titled in order to avoid costly probate?

ANSWER: Joint tenants with right of survivorship (JTWROS) or signing a Transfer-on-Death form at your brokerage firm or bank are simple and cost-free ways to avoid probate. Establishing a trust is another alternative although more expensive.

Do You Have More Financial Planning Questions? Ask Below Or

You can reach Ed Mahaffy directly at ed@clientfirstwm.com or call 501.603.0406

Ed Mahaffy

Our first priority is helping you take care of yourself and your family. We want to learn more about your personal situation, identify your dreams and goals, and understand your tolerance for risk. Long-term relationships that encourage open and honest communication have been the cornerstone of my foundation of success.

Our approach is cost-effective and tax-efficient. As an independent investment advisor, we can offer you a personalized financial strategy, not a generic investment program. Your individual portfolio will be based on your unique situation, your values, your preferences and your goals. It will be designed to account for change, in the markets and in your circumstances.

As your professional partner, we’ll work hard to earn your trust and confidence, and provide the advice and service you deserve. Send me a note regarding any questions you may have about any particular investment concepts or products. We’ll get back to you quickly with a thoughtful answer.

Request A Copy of “How To Select A Financial Advisor” at

https://www.clientfirstwm.com/download-my-book

You can reach me directly at ed@clientfirstwm.com or call 501.603.0406