faq

How does my Financial Professional get paid? 

Financial professionals can be compensated in various ways, depending on their business model and registrations. Here are some common methods:

·       Fee-only: Financial advisors may charge a flat fee, hourly rate, or a percentage of assets under management (AUM). This approach often aligns their interests with those of their clients, as they are paid directly by the client and not through commission on products sold.

·       Commission-based: Most financial advisors earn commissions on financial products they sell or transactions they facilitate, such as insurance policies, mutual funds, or brokerage accounts.

·       Fee-based: This combines both fees and commissions. Advisors might charge a flat fee for advice but also earn commissions on certain products they sell.

At NxtGen Advisory Group, we work with clients however they are most comfortable given their experience and financial goals.

What questions should I ask a Financial Professional before working with them.

When considering working with a financial professional, it's crucial to ask questions that will help you understand their qualifications, experience, and approach. Here are a few suggested questions:

• What are your qualifications and experience? Enquire about certifications and previous work history to evaluate their experience.
  
• How do you get compensated? Understanding their pay structure can reveal potential biases in their advice.
  
• Check BrokerCheck to see if they have any previous compliants or issues.
  
• What is your investment philosophy? This can provide insights into their strategy and how it aligns with your financial goals.
  
• How will we communicate and how often? Determine their availability for consultations and updates on your financial plan.

These questions can help you assess whether a financial professional is the right fit for your needs.

Where do I even start with financial planning, and what should I bring to our first meeting?

A great first step is getting a clear picture of your current finances—things like your income, expenses, savings, investments, and any debt. Bringing recent statements and a list of your goals (short‑term and long‑term) helps us make the conversation more meaningful. From there, we can work together to create a plan that fits your life.

How can I tell if I'm on track for retirement, and what should I be saving right now?

Knowing if you're on track depends on your age, income, lifestyle goals, and what you’ve already saved. We can help you estimate how much you’ll need and how much to set aside each month to stay on course. A personalized review can give you clarity and help you feel more confident about your future.  Contact us today - we'd be happy to give you an account review!

What should my financial priorities be at this stage of my life?

Priorities can shift depending on your age, family situation, and financial responsibilities—whether that’s building savings, paying down debt, investing, or planning for retirement. We can help you understand what deserves focus right now and how to balance everything without feeling overwhelmed. Together, we’ll create a plan that matches your goals and stage of life.

How can I help ensure my spouse is financially secure if I pass away?

To ensure your spouse's financial security, consider prioritizing life insurance to replace lost income and designate them as the beneficiary on retirement accounts for continued support. Create a will or trust to simplify asset distribution and address debts to prevent future burdens. Reviewing survivor benefits such as pensions or Social Security and consulting a financial advisor can help create a tailored, comprehensive plan.

Discussing these plans with a financial advisor at NxtGen Advisory can help create a comprehensive approach tailored to your family's needs.

What are the benefits of setting up a family trust?

A family trust can offer several benefits:

• Asset Protection: Trusts can safeguard assets from creditors and legal disputes.
• Privacy: Trusts can avoid probate, keeping asset distribution private and quicker.
• Control Over Distribution: Specify how and when beneficiaries receive assets, helping manage young or financially inexperienced family members' inheritances.
• Tax Planning: Trusts might offer tax planning opportunities, depending on their structure and the applicable laws.
  

Consulting with an estate planning attorney can provide guidance on whether a trust fits your goals and the best type to set up.

I just inherited an IRA after the loss of a loved one...what should I do?

Inheriting an IRA comes with important tax and distribution rules, and your next steps depend on your relationship to the original owner and the type of IRA. The best move is to understand your options before taking withdrawals, so you don’t trigger unnecessary taxes. Acting quickly but thoughtfully can help preserve the value of the account.
NxtGen Advisory can walk you through your choices along with your tax professional and help you make the most tax‑smart decision.

What's the best way to save for my kids' college?

A 529 plan is one of the most effective ways to save for education thanks to tax‑free growth and flexibility for qualified expenses. Other tools—like custodial accounts or education savings accounts—may also fit your goals. The right choice depends on how much control you want and how you plan to use the funds.  NxtGen Advisory can help you choose the right strategy for your family.

What's the best way to start investing?

The best place to start is with a clear plan: set goals, build an emergency fund, and choose a diversified investment approach aligned with your timeline and risk level. Even small, consistent contributions can grow meaningfully over time. Starting early and staying disciplined can make a big difference in your long‑term results.
NxtGen Advisory can help you build a personalized investment plan and get started confidently.

I want to set up a retirement plan for myself as a business owner, what are my options?

As a business owner, you have several retirement plan options:

• SEP IRA: Simplified Employee Pension (SEP) IRAs are easy to set up and allow for high contribution limits.
• SIMPLE IRA: Savings Incentive Match Plan for Employees (SIMPLE) IRAs are suitable for small businesses with up to 100 employees.
• Solo 401(k): Ideal for self-employed individuals with no employees, offering high contribution limits.
• Defined Benefit Plan: Provides a fixed, pre-established benefit for employees at retirement, suitable for owners seeking large contributions.
  

For tailored advice, consult with a financial advisor at NxtGen Advisory to choose an appropriate plan for your needs.

How do I offer a 401k plan to my company?

To offer a 401(k) plan:

1. Choose a Plan Provider: Select a financial institution or third-party administrator to handle the plan setup and management.

2. Plan Design: Decide on plan features such as employer matching, vesting schedules, and eligibility requirements.

3. Documentation: Prepare the necessary plan documents, including the Summary Plan Description (SPD).

4. Employee Communication: Educate employees about the plan benefits and enrollment process.

5. Compliance: Ensure the plan complies with IRS and Department of Labor regulations.

We would love the opportunity to connect and learn more about your organization and how a 401k plan would enhance retention and your overall benefits package!

Should I be shopping for employee benefits every year?

Yes, reviewing employee benefits annually is advisable for a number of reasons including: ensuring you are getting the best value (cost management), updating benefits to remain competitive, adjusting offerings based on employee feedback or changing needs and being sure you are compliant with new laws or regulations.

Working with a financial advisor at NxtGen Advisory, with experienced knowledge of these plans, can help simplify this process and help optimize your offerings.

What kind of insurance or protection does my business need to safeguard against risk?

Every business has unique risks, but common protections include general liability, property insurance, cyber coverage, and insurance for your key people. The right mix depends on your industry, size, and goals. We’re happy to review your situation and help you build a protection plan that fits your business.

Can you help me design or improve employee benefits like retirement plans or profit sharing?

Yes—whether you want to start a retirement plan, add profit‑sharing options, or strengthen your existing benefits, we can help you create a program that supports your employees and aligns with your budget. A well‑designed benefits package can also improve retention and attract top talent. Let’s talk about what will work best for your team.  Contact us today to get the planning started!

What can i use for tax write-off's for my business?

Many business expenses—like equipment, office costs, travel, and certain retirement plan contributions—may qualify as tax deductions. The details depend on your business structure and activities. We can walk you through what applies to you and help you make the most of available tax benefits.

What steps should I take to start building wealth after divorce?

To start building wealth after divorce, first assess your finances by reviewing your income, expenses, assets, and debts to understand your post-divorce financial position. Set both short- and long-term financial goals, such as rebuilding savings, paying off debt, or investing for retirement.

Create a budget that reflects your new circumstances and prioritize saving while reducing unnecessary expenses. Focus on rebuilding your savings by growing an emergency fund and contributing to retirement accounts like IRAs or 401(k)s.

Finally, seek professional guidance from a financial advisor to develop a personalized strategy tailored to your needs.  We, at NxtGen, have a lot of experience supporting women through this life transition.

What is a QDRO?

A Qualified Domestic Relations Order (QDRO) is a legal document used in divorce to divide retirement accounts, such as 401(k)s or pensions, between spouses. It ensures that the non-employee spouse receives their share of the retirement benefits without triggering taxes or penalties. A QDRO must be approved by the court and the retirement plan administrator.

Consulting with a financial professional can help ensure proper preparation and compliance.

Where can I buy life insurance that satisfies my divorce decree?

Our financial advisors can help you find a policy for your needs by considering:

• Determine Coverage Needs: Confirm the required coverage amount and duration as specified in the decree.
• Choose the Right Policy: Options include term life insurance (affordable and time-limited) or permanent life insurance (offers lifelong coverage).
• Name the Correct Beneficiary: Ensure the appropriate person, such as your ex-spouse or children, is listed as the beneficiary.
• Consult an Expert: Work with an insurance agent or financial advisor to select a policy that aligns with your specific needs and legal obligations.

Reach out – we’d love to connect today!