Benefits of hiring a financial advisor to plan your retirement
- Planning Your Retirement
Financial advisors are experts at planning your future finances. A good financial planner helps you create a budget and develop strategies to help you reach your goals and live comfortably throughout retirement. Financial planners have access to information about various investment options and insurance products that you may not know much about. By working together, they can help you achieve your long-term financial objectives.
- Saving Money
A financial planner can help you save money throughout retirement. He or she can recommend investments that best suit your risk tolerance and time frame. He or she can also help you figure out how to invest your savings efficiently. If you’re taking advantage of tax-deferred accounts, your advisor can make sure the investments work well with those plans. He or she can even help you decide if you should take distributions early or late in retirement.
- Protecting Yourself From Inflation
Inflation means that prices rise over time. As inflation increases, your purchasing power decreases. When you retire, you want to ensure that your assets don’t lose value due to inflation. A financial planner can help you choose investment vehicles that protect your wealth from rising costs. He or she can advise you on how to allocate your portfolio between fixed income and equity securities. He or she can determine whether you need to rebalance your portfolio annually.
- Avoiding Unnecessary Fees
You pay fees for many services. You get them for investing, banking, paying bills, buying insurance, etc. These fees add up over time. An experienced financial planner knows what types of fees are unnecessary and which ones you should avoid. He or she can help you reduce unnecessary fees while increasing efficiency and effectiveness.
- Choosing the Right Investment Options
When you start saving for retirement, you should consider both short term and long term investments. Short-term investments allow you to build your nest egg faster than longer term investments. But once you’ve saved enough for retirement, you should begin considering long-term investments. Longer term investments provide greater returns, but require patience. An experienced financial planner can help you find the right mix of short-term and long-term investments to meet your goals.
- Helping You Understand Insurance Products & Benefits
Insurance products offer protection against risks. Most people rely on their employer sponsored pensions as their primary source of retirement income. However, these funds aren’t guaranteed, meaning that you could run out of money before you die. To supplement your pension, you might consider annuities, mutual funds, or variable annuities. Annuities are contracts where you agree to pay premiums for a certain period of time. Mutual fund investments pool your money with others who share similar interests. Variable annuities combine features of both annuities and mutual funds. A financial planner can explain each option to you and help you understand how they differ.
- Providing Tax Advice
Retirement doesn’t mean you no longer have to file taxes. Many retirees use a combination of traditional and Roth IRAs to manage their retirement expenses. Traditional IRA contributions are deductible, whereas Roth IRA contributions are not. A financial planner can make sure you’re using these accounts correctly. He or she can review your current situation and recommend changes that would maximize the benefit of your retirement account. He or she can tell you if you qualify for any special tax breaks.
How can you get these benefits to build the retirement plan you need? Hire Bodie Murray!
Retirement planning is one of those subjects that no matter what your age is, you should start thinking about now. Planning ahead gives you options when it comes time to save for retirement. It also allows you to avoid some common mistakes people make during their golden years.
A financial planner such as Bodie Murray from Northwestern Mutual in Phoenix, should help you create your own unique retirement strategy based on your goals, risk tolerance, and time horizon. They can also give you guidance about whether you need to save more now than later. Call today and start getting answers towards a good retirement plan.
