If you’re considering early retirement and looking to invest your stipend of nine months’ salary and your 401(k) savings of approximately $113,000, you may be wondering if you should hire a financial advisor outside of your current employer’s investment company. Here’s what you need to know.
The Benefits of Hiring a Financial Advisor
Working with a financial advisor outside of your employer can have its benefits. If your current employer’s advisor is low-cost, acts as a fiduciary, and has a preeminent planning designation, they may be a great fit for your needs.
Evaluating Your Current Financial Advisor
It’s important to evaluate your current advisor carefully before making a decision. Assess their fiduciary obligations, costs, and credentials. If these factors aren’t up to par, it may be in your best interest to find an advisor elsewhere.
Remember: when it comes to your finances and retirement, it pays to do your research and make an informed decision.
Finding the Perfect Financial Adviser
Are you having trouble with your current financial adviser or considering finding a new one? Before making any decisions, it’s essential to consider all your options and assess your financial goals for the future.
If you’re currently working with an adviser, take the time to meet with them and review your situation together. This will help you determine whether they’re the right fit for you and if they have done an adequate job up to this point. Certified financial planner Joe Favorito at Landmark Wealth Management suggests that if you decide to look for a new adviser, it’s best to choose one exclusively. Multiple advisers can sometimes create more problems than you can solve, leading to a lack of cohesion in your financial plans.
Whether you choose a new adviser or go solo, there are several things you’ll want to consider. Understanding your net monthly expenses in retirement in today’s dollars is crucial. It’s also important to know whether you have any pensions expected in the future and what Social Security benefits you can expect at 67 and 70. Additionally, certified financial planner Adam Koos at Libertas Wealth Management recommends identifying when you’d like to retire and selecting a plan accordingly. However, it’s crucial to keep in mind that these questions come with assumptions, and the most significant concern is not saving enough to retire when you’d like.
If you’re uncertain about your financial future or need help navigating the complexities of retirement planning, consider working with a financial adviser who can guide you through the process. Use our tool to find a qualified financial adviser who can meet your needs.
Retirement Planning: What You Need to Know
Retirement planning may seem overwhelming, but it’s crucial to start thinking about it sooner rather than later. It’s essential to plan for your future because how you save and invest now can determine your quality of life down the road. However, it’s never too late to start planning for retirement.
According to financial experts, there are two possible scenarios when it comes to retirement planning. First, you need to save as much as you can between now and full retirement. Second, you need to be a relatively frugal individual who can live a comfortable lifestyle on a fixed income.
For example, if your Social Security benefit is $3,500 per month and you have retirement savings of $150,000 by the time you retire at age 65, your monthly gross income will be around $4,000. However, this may not be enough to cover your expenses. Therefore, it’s important to keep working and earning money that can boost your retirement funds or seek advice from a financial advisor.
When seeking the advice of a financial advisor, make sure they have the ability to handle estate planning, insurance planning, and tax planning. It’s crucial to consider all of these factors as you get closer to your senior years.
Moreover, financial advisers recommend having some liquid emergency savings on hand. Regardless of whether you’re approaching retirement, it’s advisable to save between three and six months of living expenses in an emergency fund.
In conclusion, retirement planning can be challenging, but it’s crucial to your future financial stability. Don’t hesitate to seek professional guidance and establish an emergency fund in case of unforeseen expenses.
Retirement Planning: Key Considerations
When planning for retirement, there are many factors to consider. One important aspect is deciding when to take Social Security benefits. You can receive the maximum benefit by retiring at full retirement age, which varies from 66 to 67 depending on your birth year. However, delaying your Social Security benefits can result in increased payments each month.
If a recession is making it difficult to find a job that you enjoy, consider entering the gig economy to earn extra income. This can provide flexibility and supplementary funds.
For those seeking financial advice, the National Association of Professional Financial Advisors (NAPFA) provides an online tool to help connect you with professional planners suitable for your needs.
