Get Retirement Planning Help From A Financial Advisor

in Advice

Retirement might seem like it's a long time away, but it sneaks up on you much faster than you might think. If you don't take the necessary steps to plan for retirement now, you'll probably be sorry later. While some people understand the importance of retirement planning, they do not know the first thing about how to do it. For people in this situation, hiring a financial advisor may be the best approach to take.

How an Advisor Can Help

A financial adviser is an individual who has been thoroughly trained in financial matters ranging from investments to budgeting. If you have not yet started retirement planning, and advisor will be able to sit down with you and get you started.

The first part of the process involves an interview and possibly a questionnaire that is administered by the advisor. The advisor wants to determine what you want to accomplish in life with your finances. The advisor will determine your risk tolerance and what you know about investing already. Once this information has been determined, the financial advisor can help you come up with a plan to help your finances.

The advisor may help you come up with a budget that you can stick to. Without a budget, all of the other steps that the advisor puts into place may be for nothing. You need to be living on a budget so that you have the necessary amount of money to put towards investing each month.

Setting Up a Retirement Plan

A financial advisor will be able to help you set up the best type of retirement plan for your situation. When engaging in retirement planning, you have many different types of accounts that you could set up. For this example, the IRA and the Roth IRA are two different options for you to consider. Depending on your needs, one may be better for you than the other. The financial advisor will be able to explain to you the differences between the various retirement accounts and the tax benefits that each one is entitled to. Without the right kind of retirement plan in place, you might end up throwing away unnecessary money on taxes and fees.

In addition to helping you choose the right type of financial account is set up for your retirement, the advisor can also point you in the right direction of some investments. Depending on the results of your questionnaire, the advisor will be able to ascertain what types of investments will fit into your level of risk tolerance. For example, he may be able to help you come up with the appropriate portfolio allocation for your retirement. This could involve buying some stocks, bonds and mutual funds in the appropriate amounts to fund your portfolio.

Making the Decision

If you're interested in choosing a financial advisor, make sure that you do a little bit of homework first. Make sure that the advisor you pick is knowledgeable about retirement planning and that he is able to provide the kind of service that he claims. You can use resources such as the "Broker Check" tool from FINRA to check up on your financial advisor before you agree to work with him.

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Teresa Lake has 312 articles online

Trust the financial advisors and planners at with your estate, retirement, and succession planning, and know that your family will enjoy the financial security they deserve.

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This article was published on 2012/05/13