A Guide to Financial Advisors and Retirement Planning
It is never too early or too late to start thinking about retirement. The best starting point is to look for a financial advisor who can help you on your journey. A Financial Advisor is dedicated to helping you map out your finances in the most beneficial fashion; they have a deep and broad knowledge of money management.
Why Hire a Financial Advisor?
A Financial Advisor is more than just a third-party planner. They become your partner, your guide to the world of finances. A Financial Advisor is an educator, guiding you to understanding your goals and how to meet them.
Some Financial Advisors specialize in certain money management techniques while others can guide you from tax preparation at the beginning of your career all the way through retirement at the end. Some services that Financial Advisors specialize in are as follows:
The all-around approach, these are the advisors that walk you through every stage of your finances. They help prepare your taxes and investments and help you save for major expenditures and retirement.
Income Tax Preparation
These advisors can help guide you through the complicated tax code and ensure you receive the best return or owe the least amount.
Investment advisors help you understand various tasks from navigating the stock market to supporting startup businesses.
Retirement Income Planning
These advisors focus help you focus on each aspect of retirement: investments, pensions, social security, taxes, etc.
What are the benefits of Retirement Planning?
Upcoming generations face longer lifespans and a greater dependence on personal savings through retirement. You do not want to live a paycheck-to-paycheck or be stuck in the workforce. A Financial Advisor knowledgeable in Retirement Planning can help you know the best savings plan, will help you reach your goals, and will answer any questions in the process.
How do you choose the right advisor?
Remember that some advisors are willing to work remotely— you are not limited by your location. The best place to start is looking at credentials. Legitimate advisors will be certified with a CFP, PFS, or CFA. For retirement planning specifically, keep in mind specialized training certifications like the RMA or RICP. An advisor gets bonus points for being a member of NAPFA, meaning they continued learning past their certifications and are fee-only investors.
You will want to research the differences between fee-only and non-fee-only advisors. While commission-based and hourly rate advisors are great for smaller tasks such as tax preparation, long-term partnerships work best with fee-only advisors.
Reaching Your Goals
You have worked hard to earn a living; you deserve a calm and well-planned retirement. A Financial Advisor can help you reach that goal in the most efficient and least confusing manner.