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financial advisor

Questions to Ask your Financial Advisor while Planning your Retirement

Retirement planning is not something that should be taken lightly, which is why you should meet with your advisor regularly. If you’ve set up an appointment to chat with your financial advisor, chances are that you have a few questions to ask them. Below are some examples of questions you should be asking to help ensure that your retirement portfolio will be able to cater for your needs once you stop working.

  1. Can Debt Affect my Retirement?

Unfortunately, any type of debt will have a negative effect on your retirement, so this is something you should speak to your financial advisor about, If you’re saddled with high levels of consumer debt, you can work with your advisor to help find ways to reduce the amounts you owe as quickly as possible. It’s best to reduce or even eliminate debt before you stop working.

  1. Are my Retirement Savings on Track to Achieve my Goals?

Ensuring that you are keeping close track of your retirement savings plan is probably the most important thing to do – you won’t be able to retire as planned if you haven’t been saving enough money. As such, you must ask your advisor if the amounts you’re currently saving are sufficient or if any changes will need to be made to achieve your retirement goal. It’s also important to know how much interest your savings are accruing over time from compounding interest. 

  1. What Percentage of my Current Income can be Replaced when I Retire?

Most individuals have spent a few years or even decades earning a fixed paycheck, so it’s recommended that you ask your advisor if this will be changing after you’re no longer working. An adjustment to your income is serious business, so it’s important that you be prepared for when it happens. However, any reliable advisor will be able to let you know what your approximate income will be when you retire

  1. At what Age should I Take Social Security?

Knowing what it’s the right time to take Social Security forms an important part of a good retirement plan, and being aware of just how long to delay taking it will enable you to get the best benefit possible. Taking Social Security too early will have a negative effect on your retirement finances. 

  1. What Age will I Qualify for Medicare?

One of the biggest costs to take into consideration when doing retirement planning is health care. Although Medicare was established to help retired individuals cover medical bills, you’ll need to discuss with your financial advisor when the best time will be to sign up for it. 

Asking these questions will help ensure that you get the most out of an appointment with your financial advisor. These professionals address all aspects relating to retirement, so they form an essential part of your planning process. If you would like to learn more about being able to afford to retire comfortably, contact our team today.

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Why Using a Financial Planner for Retirement Is Just Smart

A financial planner is someone who has a specific set of knowledge related to helping you plan for your long-term financial goals. These individuals can analyze your present status and give you the guidance you need to plan for any major life event, including things like having a baby, buying a house, or even retiring. Here are some of the main reasons why it is always better to use a financial planner when it comes to your retirement.

#1 – Things Happen

Maybe you are in your 30s, you have a decent chunk of change in your 401k account, and you have a great job. Things may be going well right now, but what happens if you get laid off and you need money? Diving into that 401k is going to cost you a pretty penny in penalties, and you will essentially rob yourself of part of your retirement savings. A financial planner has the knowledge and expertise to help you allocate your savings wisely so that you can deal with these unexpected issues.

#2 – Economies Change

Let’s say that you want to retire with $150,000 in the bank. For most people, this is a reasonable goal and one that is perfectly attainable. However, take the time to consider the rate at which the economy changes. A gallon of milk may cost you $5 now, but what will it cost in 20, 30, or even 40 years when you are ready to retire? That $150,000 may not stretch as far as you had hoped, and you might find yourself in trouble. A financial planner can help you estimate cost of living increases and plan for these early.

#3 – Your Health Can Change

Many people start off strong when it comes to saving for retirement, but then a health crisis strikes and they find themselves in a bind. A professional, expert financial planner can work with you from the outset to help you allocate funds for a variety of situations – including long-term health issues. Even if you find yourself unable to work and the recipient of short-term disability benefits for a period of time, a good planner can help you make the most of those funds.

#4 – You Might Need to Identify Some Money Pits

Many people make more than enough money to save and invest in their retirements but seem to have trouble actually finding those funds when it comes to contributing to an IRA or other form of account. Financial planners excel mainly in one area – budgeting. They can help you determine where your money is going and what you should do to make sure it starts going to the right places. For instance, maybe you can cut back on your premium cable channels and put that $50 a month into an account. Over the course of 30 years, those savings alone add up to $18,000. Imagine the possibilities if you could find a few other cutbacks.

Many people truly believe that they have all of the knowledge and expertise it takes to plan for their own retirement. However, things and circumstances can change in the blink of an eye, and these are the times when having an expert financial planner on your side can make a tremendous difference.

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