FAQS
Getting Started
What does a financial advisor do?
A financial advisor helps you make informed decisions about your money based on your goals, priorities and overall financial situation. That can include investment management, retirement planning, income planning, tax strategies, insurance, Social Security and other financial decisions. At Thompson Pratt Capital Management, the focus is on understanding what your money needs to accomplish and creating a strategy around those goals.
What is financial planning?
Financial planning can bring together multiple areas of your financial life, including investments, retirement, income, taxes, insurance and risk management. Rather than looking at each decision in isolation, the goal is to create a framework that helps connect those decisions to your broader financial goals.
Is financial planning only for people who are close to retirement?
No. Financial planning can be useful at many stages of life. Younger individuals may focus on building wealth and establishing good financial habits, while those approaching retirement may focus more on income, taxes, Social Security and protecting the assets they’ve accumulated.
How often should I review my financial plan?
Your financial plan should evolve as your life changes. Major events such as a career change, marriage, divorce, inheritance, business transition, approaching retirement or a significant change in your financial goals may be good reasons to revisit your strategy. Even without a major life event, periodic reviews can help ensure your plan remains aligned with your goals.
What should I bring to my first meeting?
You don’t need to have everything perfectly organized. Helpful information may include statements for investment and retirement accounts, Social Security estimates, insurance policies, income information and a general idea of your financial goals. Most importantly, come prepared to talk about what you want your money to accomplish.
How do I get started?
The first step is simply a conversation. Tell us where you are, where you want to go and what questions you have about your financial future. From there, we can determine what areas of your financial strategy may deserve a closer look.
FAQS
Retirement & Social Security
When should I start planning for retirement?
The earlier you start, the more opportunities you have to build and adjust your retirement strategy over time. But there is no single “right” age to begin. Whether retirement is decades away or just around the corner, a financial review can help you understand where you stand, what you may need and what steps you can take next.
How much do I need to retire?
There isn’t one number that works for everyone. The amount you need depends on your lifestyle, expected expenses, retirement age, other sources of income, investments, taxes, healthcare costs and other factors. Retirement planning looks at the bigger picture to help determine whether your savings and potential income sources can support the retirement you envision.
How does retirement income work?
Retirement income may come from several sources, including Social Security, pensions, retirement accounts, investments, annuities or other assets. The goal isn’t simply to determine how much you have saved, but to develop a strategy for turning those resources into income while considering taxes, market conditions, longevity and your spending needs.
When should I start taking Social Security?
The right time to claim Social Security depends on your individual circumstances. Your age, health, income needs, other retirement assets, marital situation and overall retirement strategy can all factor into the decision. Social Security planning can help you evaluate how claiming benefits may fit with your other sources of retirement income.
Are Social Security benefits taxable?
They can be. Whether Social Security benefits are taxable depends in part on your total income and filing status. The IRS notes that some taxpayers may have a portion of their benefits included in taxable income.
What if I’m already working with another financial advisor?
That’s okay. You don’t have to be unhappy with your current advisor to seek another perspective. An independent review can help you better understand your existing strategy and give you additional information to consider when making financial decisions.
FAQS
Investments & Second Opinions
Should I have my investments reviewed?
A periodic investment review can help you determine whether your portfolio still aligns with your goals, time horizon and comfort with investment risk. Life circumstances and financial goals can change, and your investment strategy may need to change with them.
What is an Investment Review?
An Investment Review is an opportunity to take a closer look at your current portfolio and how it fits into your overall financial strategy. It can help identify questions around diversification, investment objectives, fees, risk and whether your current approach is aligned with what you’re trying to accomplish.
What is a Second Opinion Service?
A Second Opinion Service gives you an opportunity to have your existing financial strategy reviewed by another financial professional. You don’t necessarily need to be looking for a new advisor. Sometimes, you simply want another perspective or want to better understand whether your current strategy is working toward your goals.
Why would I want a second opinion on my financial plan?
Financial decisions can be complex, and getting another perspective can help you better understand your options. A second opinion may be especially helpful after a major life change, before retirement, when considering a significant investment decision, or when you simply have questions about your current strategy.
Do I have to move my investments to Thompson Pratt to get a second opinion?
A second opinion can begin with an objective conversation about your current situation and strategy. The purpose is to help you understand your options and identify potential opportunities or questions worth exploring. Any recommendations would depend on your individual circumstances.
