Admitting you need help is hard. Paying for that help is even harder. And paying to get help saving money … well that seems downright ridiculous to some people.
But I find those who think it’s unnecessary to pay for financial advice usually don’t have a clear idea of what an experienced, knowledgeable adviser can do for them.
Good financial strategizing extends well beyond where and how you invest. Here are three areas where having a trusted adviser on your side can add value to your retirement planning:
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Portfolio construction
This is the nuts and bolts of investing, but it goes much further than buying and selling stocks and other securities. An adviser who is familiar with your goals can put together a plan that will help guide you to and through a successful retirement. They’ll work with you to determine your risk tolerance based on your financial and emotional ability to handle market volatility. They can create a diversified asset allocation that will hold up better in the event of a market downturn, and ensure you have a tax-efficient plan that’s protected against inflation. And they’ll look for investments that best fit your needs at the lowest cost to you.
Wealth management
Your asset allocation will remain critical throughout retirement — you can’t just set it and forget it. As you get closer to retirement, you’ll probably want to take a more conservative approach to the markets, and allocations can drift from their targets over time, posing new risks you might not even be aware of. (In today’s bull market, for example, stocks can easily become a larger percentage of a portfolio mix than planned, making you more vulnerable in a downturn.)
You’ll also need a balanced withdrawal strategy to minimize taxes in retirement. This requires understanding where you will be on a marginal tax level each year, and then gauging the best way to take the money from any tax-deferred accounts (traditional 401(k)s and IRAs) and tax-free accounts (Roth 401(k)s and Roth IRAs). Your financial adviser can help you keep as much of your nest egg as possible.
Behavioral coaching
This is an often-overlooked part of a financial professional’s job — and it’s arguably the most valuable thing your adviser will do for you. That’s because investors tend to get emotional when the market is at extremes, and that can lead to bad decision-making. People get greedy when times are good — taking on more risk than they should. And they get scared when times are bad — selling low or moving everything to cash. Your adviser will listen to your worries, help you differentiate between rumors and reality, and offer moral support as you stick to your plan.
Performance is important. But to make the most of your hard-earned savings, you should be looking beyond returns. Your financial professional can help you minimize taxes and volatility, optimize your income streams and ensure you stay on the road map designed to best reach your retirement goals.
Kim Franke-Folstad contributed to this article.
-
Four Essential Michael Jordan Quotes on Life in RetirementThe GOAT of basketball on how he spends his time and what he misses.
-
Three Critical Tax Changes Could Boost Your Paycheck in 2026Tax Tips The IRS predicts these tax breaks may change take-home pay in 2026. Will you get over $1,000 in tax savings?
-
The OBBB Ushers in a New Era of Energy Investing: What You Need to Know About Tax Breaks and MoreThe new tax law has changed the energy investing landscape with expanded incentives and permanent tax benefits for oil and gas production.
-
Ten Ways Family Offices Can Build Resilience in a Volatile WorldFamily offices are shifting their global investment priorities and goals in the face of uncertainty, volatile markets and the influence of younger generations.
-
Should Your Brokerage Firm Be Your Bookie? A Financial Professional Weighs InSome brokerage firms are promoting 'event contracts,' which are essentially yes-or-no wagers, blurring the lines between investing and gambling.
-
Supermarkets Have Become a Pickpockets' Paradise: How to Avoid Falling VictimSome stores regularly rearrange inventory with the aim of increasing purchases, and they're creating opportunities for thieves to steal from customers.
-
I'm a Wealth Adviser: These Are the Pros and Cons of Alternative Investments in Workplace Retirement AccountsWhile alternatives offer diversification and higher potential returns, including them in your workplace retirement plan would require careful consideration.
-
The Rubber Duck Rule of Retirement Tax PlanningRetirement Taxes How can you identify gaps and hidden assumptions in your tax plan for retirement? The solution may be stranger than you think.
-
I'm a Financial Planner: If You're Within 10 Years of Retiring, Do This TodayDon't want to run out of money in retirement? You need a retirement plan that accounts for income, market risk, taxes and more. Don't regret putting it off.
-
Five Keys to Retirement Happiness That Have Nothing to Do With MoneyConsider how your housing needs will change, what you'll do with your time, maintaining social connections and keeping mentally and physically fit.
