Your Financial Advisor is Your Best Friend in Retirement
“
I
’ ve decided to retire soon , and I need some help .”
As financial advisors , we hear this a lot . Most people know that retirement planning involves considering expenses and managing income from assets , pensions , and other sources . What they often don ’ t realize is that cash flow management , while important , is only one component of the complex series of moving parts that make up a retirement plan .
Retiring is a process that requires time and careful planning –– a lifetime of savings can be derailed by a few misguided choices during the transition to retirement . Engaging a financial advisor can ease this transition . Their knowledge and experience can make a complex process considerably less painful and with their help , you can create a plan and timeline that you are comfortable with .
A financial advisor is your best friend in retirement . Even if you have multiple advisors working on different parts of your plan , it is essential to have at least one advisor who knows the entire story . This ensures nothing is missed .
A financial advisor should be able to provide examples of how they have helped other clients in situations similar to yours , and they should assist you in setting a balanced exposure to various asset classes based on your individual financial situation and goals . Moreover , because nobody can predict the future , flexibility in your retirement plan should be considered necessary , not optional . Your financial advisor can answer your most pressing questions : Will I run out of money ? Will I be able to maintain my lifestyle ? Can I buy a sports car ?
By Mike Reed , AIF and Collin C . Grover , CFP
They can also help account for the many aspects of a retirement plan , including :
• Maximizing your savings in the last few years of employment and exploring investment vehicles , like Roth IRAs , to assist in this process
• Divesting company stock options , keeping in mind any tax or diversification consequences
• Considering healthcare costs and how to transition to Medicare
• Pension claiming strategies and lump sum considerations
• Understanding Social Security claiming strategies ( which were changed by a new law in April 2016 )
• Looking into long-term healthcare options
• Recognizing all these factors in the context of your assets , other sources of income , goals and needs , and your individual situation
A committed financial advisor will stay engaged after you transition from work to retirement , proactively reaching out about any tax or estate planning rule changes that may affect your retirement . They ’ ll also stay up to date on changes in your life and your goals . Some of the questions we ’ ve heard from retired clients ( and worked with them to resolve ) are :
• What ’ s the best way to minimize our taxes ?
• How do we change our legacy plan ?
• Our family situation has changed . How do we start saving for our new grandchild ’ s college education ?
• Living in the North is cold and no longer fun . Can I buy a house somewhere warm ?
• We want to travel more . Can we afford it ?
An advisor is equipped to answer these and any other questions you have pertaining to your retirement .
Whether retirement is still years away or rapidly approaching , it ’ s a good idea to consult a financial advisor to make sure that you ’ re on track to achieve your financial needs and goals . They ’ re able to help you assess all the viable alternatives and provide support and discipline along the way . When considering retirement , a committed financial advisor should be your first call .
16
COLLIN COUNTY Living Well Magazine | JULY / AUGUST 2016
At Portfolio Solutions ®, we design , implement , and maintain dedicated portfolios using low-cost , passive investing methods so our clients keep more of what the global markets offer . We would rather see investors earn more by controlling their investment costs than by taking unneeded , additional risk in their portfolios .