Do I Need a Financial Advisor for Retirement?

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Written By Charlotte Miller

Financial solitude is always a problem no one likes to consider. For that reason, many ignore the importance of planning for retirement. Some think it’s far away, or there’s plenty of time to figure things out as they go. Being unprepared for retirement is all too common, leaving many individuals struggling to get by with lower quality of life in later years.

As life transitions occur, such as losing a spouse, you may need to adjust your plans. A  reliable financial advisor in Honolulu can help you maintain your living standards while working within your means. Read on to learn why you need a financial advisor for retirement.

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What’s a Retirement Financial Advisor?

A retirement financial advisor is a professional who helps people with their retirement planning. They can help you figure out how much money you’ll need to retire, how much you can save each month, and whether or not you should invest in stocks or bonds.

A financial advisor will help you decide whether to invest your money in a 401(k) account or other investments, or even if investing at all is right for you. Some advisors specialize in certain investments, like annuities or real estate. Others can help with all aspects of retirement planning, even with retirement planning for widows.

They have a broad range of skills that may include:

  • Personal financial management
  • Certified financial planner (CFP) designation
  • Credentialing through the National Association of Personal Financial Advisors (NAPFA)

Here’s how a financial advisor can help with your retirement plan.

To Set Goals

They’re there to help you set goals and reach them. A financial advisor for retirement works with you to figure out the best way to save for retirement, including investing in stocks and bonds or setting up an IRA account.

A good financial advisor will understand all kinds of retirement accounts, so they can help you choose the most appropriate one for your needs. They’ll also be able to explain how different types of investments work and advise how long it will take before any money gets returned. Also, they answer questions about taxes and other fees that come with each investment type.

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For Reviews and Updates

A financial advisor can help you review your pension plans and ensure they’re set up correctly for you. They’ll also keep an eye on how the market is doing and ensure you get all the benefits from your retirement plan.

The best part is a financial advisor gives you regular updates at least once a year about any market changes that could affect how much money you get when you retire.

They are Knowledgeable

A financial advisor helps you understand your options for retirement. They’ll ensure you have the information you need to make smart decisions. They can also help educate you about certain retirement tax breaks, like IRA or SEP IRA.

They’ll also work with you on a plan of action that fits your budget and ensures that your investments work well together. They monitor results over time to limit risks to keep getting better at what they do. 

What to Consider  When Choosing a Financial Retirement Advisor?

Choosing a retirement advisor can feel like a daunting task. There are many options; how do you know what to pick?

  • Find an advisor with experience. It doesn’t just mean that they’ve worked with older people before; they should have experience in the specific kinds of services they offer. 
  • Ask them about their fees. You don’t need to pay too much or too little for their services. Instead, ensure you understand the costs before signing contracts or making commitments.
  • Look at the services your potential advisor offers. Many advisors provide more than just financial planning services—they’ll also help with estate planning or tax advice.
  • Consider whether or not the advisor is available to work with you during your conversations about your financial future. If an advisor cannot be reached by phone or email at least once every two weeks, they should not be considered an option for you!
  • Consider their strategies and style. If you like the advisor’s approach, ask them questions about how they approach investing and risk management. If you don’t feel comfortable with their suggestions, ask them why they think a particular strategy is right for you.

Whether you’re approaching retirement or not, it’s essential to have a financial advisor who understands where you are in your financial life and your needs. By comparing yourself to a benchmark of average potential needs, you can gauge whether an advisor offers the service and advice you need regarding retirement planning. A financial advisor may be the key difference between a comfortable retirement and an anxiety-filled retirement.