One of the most important people on your money team is your financial advisor. I speak to many many people who have little to no understanding of how the stock market and their investments work. It is complicated, I get it and that is why it is so critical to work with someone who will take the time to always explain to us where our money is and how it is working for us.
This big black hole of knowledge always comes up at this time of year when I ask clients for their 1099s from their investments. Most people say to me ” Oh I didnt draw any monies out” . Well that may be but stocks and particularly mutual funds are re balancing themselves and selling within your account, even though you dont actually draw money. So surprise surprise, you could have taxable income by way of dividends and capital gains on your investments even though you never pulled money out. It seems crazy I know.
So as we embrace this tax filing season, please make a critical “to do” to find a financial advisor you resonate with. Someone who will help you demystify the market of stocks andbonds.