October is Financial Planning Month, a perfect time to look at your financial future and to see if you’re on the right track for retirement. To help you achieve this goal, finding the right financial advisor is a great first step.
An experienced financial advisor can help ease anxiety around planning for your retirement years. If you’re looking for an advisor who can truly provide you with real value, it’s important to explore your options. Here’s all you need to know about financial advisors and how to find one that’s perfect for you.
What Does a Financial Advisor Do?
A financial advisor offers advice and guidance on various aspects of your financial life, including investments, savings, and retirement planning. When it comes to planning your retirement, an experienced advisor can be extremely beneficial in helping you secure your financial future.
According to a recent Northwestern Mutual Retirement Study, roughly two-thirds of Americans say their financial planning needs improvement (66%). This feeling isn’t going away soon as it has seen a 4 percentage-point uptick from the previous year. This could be attributed to the rising inflation we have faced throughout the year. So why do only 37% of Americans work with a financial advisor?
Working with a financial advisor can help you by consistently monitoring your finances, even with the ups and downs of the market, to provide you peace of mind as you work towards a comfortable and financially secure retirement. To get started on your search for the right financial advisor, you first must determine your desired retirement lifestyle.
Why You May Need a Financial Advisor
Is your financial house in order? The first step in determining your chosen advisor is to understand your financial goals and needs. Once you understand where your strengths and weaknesses lie, you can identify gaps of knowledge and determine the best advisor for you. Times when you may need to enlist the help of a financial advisor, include:
Life Events: As you grow older, circumstances may change. Such as getting married, expanding your family, and starting a business. These are all events that might prompt you to reevaluate your financial situation. A financial advisor who focuses on lifestyle management can help you manage these events to help you stay on track with your retirement plan.
Lack of Experience: If your monetary needs are more complex than you thought, or you need help understanding finances in general, hiring a professional can clarify those unfamiliar concepts. Many retirees benefit from extra assistance, and personalized help from a financial advisor can positively impact your financial well-being.
Creating a Robust Retirement Plan: A financial advisor is like a goal-setting partner who can assist you in figuring out what you want and how to get there. Whether it’s investing, looking for passive income opportunities, saving for emergencies or managing retirement income, they can help you make a customized plan to help reach your financial goals.
Search for Clarity
What kind of advisor do you need? Some financial advisors are solely focused on selling annuities for instance, but what if you need to dial in your other retirement needs such as planning your estate or refining your retirement tax strategy?
Advisors should explain their services and procedures clearly for your full understanding. If an advisor makes you feel judged for asking questions, it’s best to move on. You can’t have a lasting relationship with someone you can’t fully trust. Always aim for clarity and transparency in your financial dealings. Here are a couple of points to keep in mind:
- Understand their offerings: Know exactly what services the advisor offers. Are they focused on investment management, retirement planning, tax optimization, or a combination?
- Inquire about fees: Understanding how your advisor will be compensated is important. Ask about any potential hidden fees or conflicts of interest.
- Communication style: Your advisor should be able to explain complex financial concepts in a way you can understand. Effective communication is key to a successful partnership.
- Investment strategy: Discuss their investment philosophy and see if it align with your values, goals and risk tolerance.
Benefits of a Local Retirement Income Advisor
Having a retirement planning advisor in your area can be critical for ensuring a successful retirement. Here are some reasons why:
- Personalized Face-to-face Consultations: While virtual consultations have become more popular, many people still prefer in-person meetings when discussing sensitive and personal topics like retirement. Being able to sit down face-to-face allows for better communication, rapport, and trust-building.
- Local Market Knowledge: A local advisor is more likely to have a deeper understanding of the local economic environment, housing market, taxation rules, and other regional factors that could influence your retirement strategy.
- Ease of Access: Having an advisor in your area means you can easily schedule regular check-ins or quickly address any urgent concerns. This proximity can lead to more frequent and proactive adjustments to your retirement plan.
- Understanding of Local Opportunities: Local advisors may have insights into regional investment opportunities or local financial products that could be beneficial for your retirement portfolio.
- Community Connections: A local retirement planning advisor is likely to have connections with other local professionals, such as tax advisors, estate lawyers, or real estate experts. This network can be invaluable when needing a holistic approach to retirement planning.
- Cultural and Lifestyle Considerations: An advisor in your area may have a better understanding of the local culture, lifestyle, and community dynamics. This can aid in crafting a retirement plan that aligns with your desired retirement lifestyle in your chosen location.
- Accountability: When your advisor is nearby, and you have the chance to meet them regularly, there’s a heightened sense of accountability. Knowing you’ll have frequent check-ins can motivate you to stay on track with your retirement goals.
- Emergency Situations: In case of sudden financial emergencies or urgent decisions, having an advisor nearby to consult can be invaluable.
While the advent of technology has made it feasible to work with advisors from anywhere in the world, there are undeniable benefits to having a retirement planning advisor in your area. They offer a personalized, tailored approach that takes into account local nuances, which can be essential for retirement success.
Find an Advisor Who Keeps You on Track
Retirement planning is not a one-time event but an ongoing process. Your advisor should help you stay on course as your life circumstances and financial goals evolve.
Stay Connected: Make sure your advisor conducts regular check-ins to review your financial plan, assess progress, and make any needed tweaks. A great rule of thumb is to rebalance and review your retirement plan every six months. These check-ins are crucial and can help align your plan with your adapting needs and goals.
Goal-Centered Strategy: Your advisor should assist you in setting precise financial goals and charting a path to reach them. Whether saving for a dream vacation home for the family to enjoy, protecting your hard-earned legacy, or simply looking for advice on how to create a steady stream of retirement income, having clear objectives provides a sense of direction and motivation as you set off on your retirement journey.
Ongoing Support: Seek an advisor who can navigate you through emotional decisions during market ups and downs or major life transitions. They’ll help you maintain discipline and help prevent hasty choices. For example, during market volatility, your advisor can remind you of your long-term goals and the importance of staying the course, reducing the likelihood of impulsive decisions that could harm your retirement outlook.
Investment Strategy: Additionally, your advisor should work with you to develop an investment strategy that aligns with your risk tolerance and long-term goals. They should help you diversify your portfolio and select suitable investments to help optimize your returns while helping to manage risk.
Your financial advisor should be a trusted partner in your financial journey, offering ongoing support during calm and turbulent financial times. This comprehensive approach can help you achieve your financial objectives and help secure your future.
Find a Real Fiduciary
Are you looking to grow your wealth and save for retirement? Consider hiring a Fiduciary advisor. Fiduciaries are legally committed to putting your financial well-being ahead of their own. At Johnson Wealth and Income Management, our Fiduciary financial advisors work to help you navigate retirement planning and investment management while making sure every step taken is in the right direction for your financial future. We simplify the complex world of financial planning, helping your money adapt to economic changes and your evolving personal situation.
Here are just a few of the areas in which we excel in:
- Retirement Planning
- Estate Planning
- Investment Planning
- Money Management
- Insurance Options
- Tax Strategies
- Lifestyle Balance
Our experienced Fiduciary advisors are here to help you make the most of your retirement years. Our mission is to empower you to make informed financial decisions and achieve a more secure and fulfilling retirement.
Final Thoughts
Finding the right advisor doesn’t have to be complicated; it simply requires a proactive search for someone who genuinely prioritizes your interests, and this process may take some time. If you’re ready to find an advisor who will build a long-lasting partnership for decades, our advisors are here to answer your questions.
Contact us today to schedule your complimentary retirement strategy session.
All written content on this site is for informational purposes only. Opinions expressed herein are solely those of Johnson Wealth & Income Management and our editorial staff. Material presented is believed to be from reliable sources; however, we make no representations as to its accuracy or completeness. Investing involves risk. There is always the potential of losing money when you invest in securities. Asset allocation, diversification and rebalancing do not ensure a profit or help protect against loss in declining markets. All information and ideas should be discussed in detail with your individual advisor prior to implementation. The presence of this website, and the material contained within, shall in no way be construed or interpreted as a solicitation or recommendation for the purchase or sale of any security or investment strategy. In addition, the presence of this website should not be interpreted as a solicitation for Investment Advisory Services to any residents of states where otherwise legally permitted to conduct business. Fee-based financial planning and Investment Advisory Services are offered by Sound Income Strategies, LLC, an SEC Registered Investment Advisory firm. Johnson Wealth & Income Management and Sound Income Strategies LLC are not associated entities. Johnson Wealth & Income Management is a franchisee of the Retirement Income Source. The Retirement Income Source and Sound Income Strategies LLC are associated entities. © 2023 Sound Income Strategies.
