Frequently Asked Questions About Financial Planning

Choosing a financial advisor and making decisions about your money can feel overwhelming. The team at GPS Wealth Management in Marlton, New Jersey, answers some of the most common questions below. If you have additional questions or would like to discuss your specific situation, please contact us for a conversation.

What does a financial advisor do?

A financial advisor helps individuals and families organize their financial lives by looking at the full picture: income, expenses, savings, investments, insurance, taxes, and estate plans. The goal is to develop a strategy that reflects your priorities and adapts as your life changes. At GPS Wealth Management, the team works with clients on financial planning, retirement planning, investment management, tax planning, and estate planning.

How much does it cost to work with a financial advisor?

Fees vary depending on the advisor and the services provided. Common fee structures include a percentage of assets under management (often between 0.5% and 1.5% annually), flat fees for a financial plan, hourly rates, or a combination. During an initial conversation, the team at GPS Wealth Management will explain how fees work so you understand the cost before any engagement begins. Transparency around fees is a core part of how the firm operates.

What is the difference between a financial advisor and a financial planner?

The terms are often used interchangeably, though “financial planner” typically refers to someone who creates a comprehensive financial plan covering goals, cash flow, investments, insurance, taxes, and estate considerations. “Financial advisor” is a broader term that can include planners, investment managers, insurance agents, and others. The advisors at GPS Wealth Management provide comprehensive financial planning alongside investment management, meaning clients get both under one relationship.

Do I need a financial advisor if I only have a 401(k)?

A 401(k) is an important piece of most people’s retirement strategy, but it is rarely the only piece. Questions like how much to contribute, which investment options to choose within the plan, whether a Roth 401(k) makes sense for your tax situation, and how your 401(k) fits alongside other savings all benefit from professional input. This is especially true as you approach retirement and need to think about distribution strategies and Social Security timing.

When should I start working with a financial advisor?

There is no single right time, but common triggers include starting a new job with complex benefits, getting married, having children, receiving an inheritance or financial windfall, approaching retirement, or simply feeling like your finances have become too complicated to manage on your own. The team at GPS Wealth Management works with clients at all stages of life, from young families to retirees to business owners.

What should I bring to my first meeting with a financial advisor?

A productive first meeting usually starts with a clear picture of where you stand financially. Helpful items to bring include recent pay stubs or income documentation, a summary of your assets (bank accounts, investment accounts, retirement plans), a list of debts (mortgage, student loans, credit cards), insurance policies, recent tax returns, and any estate planning documents you have in place. You do not need everything perfectly organized. The initial conversation is about understanding your situation, not auditing it.

How often should I meet with my financial advisor?

Most clients meet with their advisor at least once or twice a year for a formal review. However, the advisors at GPS Wealth Management are available between scheduled meetings whenever something comes up, whether that is a job change, a question about a financial decision, or a life event that affects your plan. The planning relationship is ongoing, not limited to a set number of meetings.

Does GPS Wealth Management only work with high-net-worth clients?

No. The team at GPS Wealth Management works with individuals and families at different financial stages. Whether you are early in your career and trying to build a foundation, mid-career and managing competing financial priorities, or approaching retirement and thinking about income strategies, the firm can help. The common thread among GPS clients is not a specific account balance but a desire to be more intentional about their finances.

Is Social Security income taxed in New Jersey?

No. Social Security benefits are fully exempt from New Jersey state income tax. This is one of the more favorable aspects of retiring in New Jersey compared to some other states. However, Social Security may still be partially taxable at the federal level depending on your combined income. Understanding how Social Security interacts with other income sources is a key part of retirement income planning.

What is the New Jersey pension exclusion?

New Jersey allows qualifying retirees to exclude a portion of their pension, annuity, and IRA income from state taxes. To qualify, you (or your spouse if filing jointly) must be 62 or older, and your gross income must be $150,000 or less. If your income is $100,000 or less, married couples filing jointly can exclude up to $100,000, single filers up to $75,000, and married filing separately up to $50,000. The exclusion phases down for incomes between $100,001 and $150,000, and disappears entirely above $150,000. Social Security income does not count toward the $150,000 threshold, which is an important distinction many people overlook.

What is the difference between a traditional IRA and a Roth IRA?

With a traditional IRA, contributions may be tax-deductible in the year they are made, but withdrawals in retirement are taxed as ordinary income. With a Roth IRA, contributions are made with after-tax dollars, but qualified withdrawals in retirement are tax-free. Traditional IRAs require minimum distributions starting at age 73, while original Roth IRA owners are not required to take minimum distributions. The right choice depends on your current tax bracket, expected future income, and retirement timeline. For 2026, the income phase-out range for deductible traditional IRA contributions is $129,000 to $149,000 for married couples filing jointly, and Roth IRA contribution eligibility phases out between $242,000 and $252,000 for married couples filing jointly.

What happens to my 401(k) when I change jobs?

You generally have four options: leave the money in your former employer’s plan, roll it over into your new employer’s plan, roll it into an IRA, or cash it out (which typically triggers taxes and penalties if you are under 59 1/2). A rollover to an IRA often provides the widest range of investment options and consolidation of accounts, but the best choice depends on the plan options available, fees, and your broader financial situation. The team at GPS Wealth Management regularly helps clients evaluate rollover decisions.

Does GPS Wealth Management work with veterans?

Yes. The team at GPS Wealth Management has a particular focus on serving veterans and military families. This includes guidance on disability compensation and financial planning, transitioning from military to civilian employment, and financial literacy for veterans. Military benefits, VA programs, and the financial transition out of service all present unique planning considerations that the firm is equipped to address.

Where is GPS Wealth Management located?

GPS Wealth Management is located at 305 Fellowship Road, Suite 105, in the Marlton/Mt. Laurel Township area of New Jersey. The firm serves clients throughout South Jersey, including communities in Camden, Gloucester, Burlington, Atlantic, and Cape May counties. Location pages for specific communities, including Haddonfield, Washington Township, Margate, Avalon, and others, are available on the Locations page.

Have a Question That Is Not Listed Here?

The team at GPS Wealth Management is happy to answer your questions. Whether you are exploring your options for the first time or are looking for a second opinion on your current plan, a conversation is a good place to start. Contact us or call 856-552-0746.

This content is for informational purposes only and is not a replacement for real-life advice. Please consult your tax, legal, or financial professionals before modifying your strategy.

Individualized legal advice not provided. Please consult your legal advisor regarding your specific situation.

Specific individualized tax advice not provided. We suggest that you discuss your specific tax issues with a qualified tax advisor.