Using financial advisors for retirement: what you need to know
Financial security in retirement is a major goal for most Americans. This article takes you through how working with a financial advisor for retirement planning can help you reach that goal.
Summary
According to a survey by Northwestern Mutual, Americans believe they need $1.46 million to retire comfortably.
With professional financial advice adding between 1.5%-4% to your lifetime returns, according to certain studies, you could boost your retirement savings with expert financial advice.*
Unbiased can match you with a fiduciary financial advisor who will look after your best interests and create a personalized plan to help you reach your retirement goals.
What is a retirement financial advisor?
A retirement financial advisor provides expert and personalized guidance when planning for retirement, including saving, budgeting, investing, and spending.
These types of advisors focus primarily on the issues most relevant to people in the run up to and during retirement.
A retirement advisor can also help you manage the additional elements that come with being that little bit older, such as estate planning, managing long-term care, and making the most of senior benefits, including advantageous tax strategies.
Can a financial advisor help me with retirement planning?
Financial advisors for retirement can help you with all the elements that come with retirement planning.
Here is a breakdown of some of the areas in which a retirement financial advisor can help you:
Financial planning: Advisors can help you develop a personalized plan to help you reach your retirement goals, including how much money you need to save, how to invest, managing your debt, and budgeting.
Estate planning: An advisor should assist you in planning how to manage your assets and distribute them in the event of your death. They will help you put the right plans in place to ensure your family is looked after when you’re gone.
Investing: Saving enough money for retirement requires choosing the right investments. A financial advisor helps you build your portfolio in line with your risk level, budget, and goals.
Retirement accounts: When it comes to your 401(k), Roth IRA, or 403(b), an advisor can ensure you’re getting the most out of these accounts while also helping to minimize your tax liability.
Tax planning: A retirement advisor works with you to develop tax strategies that both makes sure you’re paying the right taxes and potentially legally minimize your liability.
Long-term care planning: Long-term care can get expensive quickly, especially if you don’t have the right insurance or savings in place. To prevent this, an advisor works with you to find the right insurance policies and develop a plan to pay for expenses should you need them.
What are the advantages of using a financial advisor for retirement?
When you use a financial advisor for retirement planning, you can make smart and confident financial decisions that can set you up for the retirement of your dreams.
Here are just three of the advantages of working with a retirement financial advisor, including:
Personalized advice: Retirement advisors provide you with personalized advice based on your unique circumstances. Based on your situation, they will build a tailored retirement plan that can help you achieve your goals.
Help with complicated issues: Some of the matters surrounding retirement, such as Social Security, insurance, and estate planning, can be complex. An advisor can help you navigate these complexities, avoid expensive errors, and have the right documents to secure your future.
A retirement budget: Knowing how much you need for retirement can feel like you’re picking a number out of thin air. With an advisor, you will have a specific retirement target, a plan to help you reach it, and a budget to adhere to, ensuring you have enough money to last throughout your golden years.
How do I find the best financial advisor for retirement?
When looking for a financial advisor, you will be presented with an overwhelming abundance of choice.
Narrowing it down and choosing the right advisor for your unique needs is the hard part.
You need to find a financial advisor who specializes in your specific area of need. While most advisors can provide general advice, one with a focus specifically on retirement is what you’re looking for.
You also need to determine what else you want from your financial advisor.
Ask yourself:
Do I want to see them in person, or am I happy with virtual calls?
What is my budget?
What kind of experience and credentials do I require to be comfortable working with them?
These are all questions you need to answer before you start looking for an advisor.
At Unbiased, we take the hard work out of finding a financial advisor.
We match you with a fiduciary, SEC-regulated financial advisor that’ll meet your needs. Answer a few simple questions about your financial needs, and we’ll take care of the rest.
Get expert retirement advice now
It's always wise to seek expert advice when it comes to big financial decisions such as retirement planning.
The experts know all the ins and outs of making your money go further and can provide you with tailored advice based on your unique circumstances and goals.
Let Unbiased match you with an SEC-regulated financial advisor.
*Certain industry studies estimate that professional financial advice can add 1.5% - 4% to annual portfolio returns over the long term, depending on the time period and how returns are calculated. The methodologies used in these studies vary greatly. Please see the list of studies below and follow their respective links to see important differences in the methodologies. Actual investment returns are not guaranteed, and results may vary greatly as net performance is dependent on numerous factors, including market conditions, inflation, contributions, investment selection and fees, including those charged by your investment advisor.
Envestnet, Capital Sigma: The Advisor Advantage 2019 estimates advisor value add at an average of 3% per year;
Russell Investments 2019: Value of a Financial Advisor Update estimates value add at more than 4% per year;
Vanguard, Putting a Value on Your Value: Quantifying Vanguard Advisor’s Alpha® 2019 estimates lifetime value add at an average of 3%;
Morningstar Investment Management, The Value of a Gamma-Efficient Portfolio, 2017 estimates value add for a subset of the service identified in this paper at an average of 1.5% per year.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.