FAQs: Answers to Common Financial Planning Questions

A financial advisor helps individuals and families make informed decisions about their finances by providing guidance on areas such as retirement planning, investments, tax strategies, risk management, and long-term financial goals.

If you’re facing important financial decisions, planning for retirement, managing investments, or seeking greater confidence in your financial future, a financial advisor may be able to provide guidance and help you stay aligned with your goals.

When choosing a financial advisor, consider factors such as qualifications, experience, services offered, communication style, and whether their approach aligns with your financial goals and needs.

At Pursuit Wealth Management, we focus on providing personalized financial guidance tailored to each client’s unique goals and circumstances. Our approach emphasizes comprehensive planning, ongoing communication, and helping clients make informed financial decisions with confidence.

Meeting frequency depends on your individual needs and preferences. We typically meet with clients on a regular basis to review progress, discuss changes in circumstances, and help ensure their financial plan remains aligned with their goals.

Our planning process begins with understanding your goals, priorities, and financial situation. From there, we develop personalized recommendations, implement agreed-upon strategies, and provide ongoing reviews to help keep your plan aligned with your evolving needs.

Yes. We are a fiduciary wealth management firm, which means we provide advice based solely on your best interest.

Bringing information about your income, assets, liabilities, investments, insurance coverage, and financial goals can help make your first meeting more productive. The specific information needed may vary based on your individual circumstances.

We offer two primary engagement types. Proactive Wealth Management is an ongoing planning and investment relationship with a transparent asset-based fee for the investments we directly manage. Financial Planning & Hourly Consulting is project- or time-based; plans often range from $2,500 to $5,000 depending on complexity.

For ongoing wealth management, we charge a transparent percentage fee for the investments we directly manage as part of comprehensive financial planning. For plan- or hourly-based consulting, fees are based on the complexity of the situation and time involved.

Fees depend on the engagement you choose. Ongoing wealth management uses an asset-based fee. Project-based financial plans typically range from $2,500 to $5,000. We discuss fees clearly before any engagement begins.

Our comprehensive wealth management engagement is often a good fit for individuals and families with approximately $250,000 to $500,000 or more in investable assets. Hourly and project-based planning is available for clients who are earlier in their planning journey or prefer to implement on their own.

We frequently work with pre-retirees and retirees, corporate employees (including professionals at companies such as 3M, Boston Scientific, Target, UnitedHealth Group, and Medtronic), and business owners throughout Woodbury and the greater Twin Cities area.

Yes. Our Financial Planning & Hourly Consulting engagement is designed for clients who want a comprehensive plan or guidance on a specific topic that they can implement themselves.

Ongoing wealth management is a long-term relationship with regular reviews as your life and markets change. Project-based planning is scoped to the work at hand and concludes when the plan or consulting engagement is complete.

We do not prepare tax returns. Tax considerations are integrated into our planning, and we work alongside your CPA or tax professional so financial planning and tax strategies stay coordinated.

LPL Financial is an independent broker-dealer that provides technology, research, clearing, and practice-management support. Securities may be offered through LPL Financial, Member FINRA/SIPC. LPL offers no proprietary investment products, which supports our ability to give objective advice.

Great Valley Advisor Group is a Registered Investment Advisor. Investment advice is offered through Great Valley Advisor Group, a separate entity from LPL Financial. Pursuit Wealth Management and Great Valley Advisor Group are separate entities from LPL Financial.

Creating retirement income typically involves coordinating multiple sources such as savings, investments, Social Security, pensions, and other assets. A retirement income strategy can help align these resources with your spending needs and long-term goals.

Factors to consider include your age, health, life expectancy, income needs, marital status, and other retirement resources. Evaluating these factors can help you make an informed decision about when to begin receiving benefits.

As retirement approaches, many investors review their portfolio to ensure it aligns with their time horizon, income needs, risk tolerance, and financial goals. Any investment changes should be based on your individual circumstances and overall financial plan.

Retirement risks may include market volatility, inflation, rising healthcare costs, longevity, and changes in income needs. Understanding these risks can help you develop a strategy designed to support your long-term financial goals.

Healthcare costs in retirement may include insurance premiums, out-of-pocket medical expenses, prescription medications, and potential long-term care needs. Planning for these expenses can help support your overall retirement strategy.

A Roth IRA and Traditional IRA offer different tax advantages. Generally, Traditional IRA contributions may provide a current-year tax benefit, while qualified Roth IRA withdrawals may be tax-free. The most appropriate option depends on your individual financial situation and goals.

Investment portfolios are typically built based on factors such as your financial goals, time horizon, risk tolerance, income needs, and overall financial situation. Portfolio recommendations should be tailored to your individual circumstances and reviewed periodically as your needs evolve.

Portfolios are reviewed regularly to help ensure they remain aligned with your goals, risk tolerance, and financial circumstances. The frequency and scope of reviews may vary based on your individual needs and changes in your financial situation.

Risk management involves evaluating factors such as investment objectives, time horizon, risk tolerance, and overall financial circumstances. Strategies may include diversification, asset allocation, and ongoing portfolio reviews designed to help keep your plan aligned with your goals.

Market volatility is a normal part of investing. During periods of uncertainty, we focus on your long-term goals, review your strategy as needed, and help ensure investment decisions remain aligned with your overall financial plan.

We help clients stay focused on their long-term goals by providing ongoing guidance, education, and perspective during periods of market volatility. Regular communication and a well-defined financial plan can help support disciplined decision-making during changing market conditions.

Tax-efficient investing involves considering the potential tax impact of investment decisions, account types, tax-loss harvesting, and withdrawal strategies. The goal is to help improve after-tax outcomes while remaining aligned with your overall financial objectives.

There are a variety of strategies that may help improve tax efficiency in retirement, depending on your individual circumstances. Planning ahead and coordinating income sources, account withdrawals, and tax considerations can help support your overall retirement goals.

Capital gains taxes may apply when an investment is sold for more than its purchase price. The amount of tax owed can depend on factors such as how long the investment was held, your taxable income, and current tax laws.

Retirement tax rates are based on factors such as your taxable income, filing status, income sources, deductions, and current tax laws. Understanding how different sources of retirement income are taxed can help support more informed financial decisions.

Charitable giving may provide tax benefits for some individuals, depending on their financial situation, tax filing status, and the type of assets donated. It can also be an important part of an overall financial and estate planning strategy.

Wills and trusts are estate planning tools that can help direct how assets are managed and distributed. The appropriate use of each depends on your goals, family circumstances, and overall estate planning needs.

A will and a trust are both estate planning tools, but they serve different purposes. A will generally outlines how assets should be distributed after death and can designate guardians for minor children. A trust can provide additional control over how and when assets are managed or distributed and may help simplify the transfer of assets. The appropriate strategy depends on your individual goals and circumstances.

Common estate planning documents may include a will, financial power of attorney, healthcare directive, and beneficiary designations. Depending on your goals and circumstances, additional estate planning tools may also be appropriate.

Estate plans should be reviewed periodically and whenever significant life events occur, such as marriage, divorce, the birth of a child, changes in financial circumstances, or updates to estate planning laws.