financial advisor

Why a Financial Advisor should Help you Plan for Retirement

Although financial advisors are often thought of as ‘costly money grabbers,’ the truth is that they possess the knowledge needed to help you plan ahead for your long-term financial goals. These specialists can analyze your current financial status and provide the information needed to plan for almost any life event such a buying a home or retiring. Below are some reasons why you should work with a financial advisor when planning for your retirement. 

  1. The Economy will Change

You may decide over time that you’d like to retire with an amount of $200,000 in savings. This is quite a reasonable goal for most individuals to achieve, but it will be necessary to take economic changes into account over time. 

For instance, you may pay $3.50 for a gallon of milk at the moment, but how much will this price have increased by the time you’re ready to retire? The initial amount you had in mind for retirement may not last as long as you’d planned, which is why a financial advisor should be consulted when setting up a savings plan. 

  1. Anything can Happen

You may currently be in your late 20s or early 30s, have a good amount of money saved in a 401(k) and be working your dream job. While everything may be going well at the moment, anything can happen over time – you could get laid off (think COVID19 – no one expected to lose their jobs because of a pandemic during 2020) and end up needing money in a hurry. 

Although it can be tempting to dip into your 401(k) account, this will not only cost you money in the form of early withdrawal penalties; you’ll be robbing yourself of potential retirement savings as well. A qualified financial advisor will be able to help you set up a practical savings plan to help deal with unexpected events like job loss or illness.

  1. Health can Change Unexpectedly

While most individuals set up a concrete savings plan for retirement, it’s important to remember that a health crisis can occur at any time – leaving you in a financial bind. A professional financial advisor will be able to work with you to help allocate money for various needs, such as long-term health conditions. Even in the event of you not being able to work for an extended period of time, a reputable advisor will help you make the most of the money you already have. 

  1. Money Pits may need to be Identified

Several individuals earn enough to save and invest in retirement accounts, but tend to struggle with actually doing so. A financial advisor will be able to help you establish a practical budget to ensure that there’s enough money to invest each month.

For example, you may be eating out twice a week when it’s possible to prepare tastier meals at home. Although everyone deserves a treat once in a while, the bulk of what’s being spent on restaurant dining can be invested instead – even $100 extra that you save per month can make a substantial difference over the course of 20 years. 

If you’re concerned about not having enough money to retire in the near future, get in touch with our advisors today. We look forward to getting your money work for you.