7 Reasons to Hire a Retirement Income Specialist
Generating a lasting income stream once you quit working takes a different set of skills than saving and investing.


I often talk to clients and prospective clients about the “two halves” of their financial lives.
I call the “first half” wealth contribution and wealth accumulation and refer to the “second half” as wealth distribution and wealth transfer.
It all sounds pretty much the same, but of course it isn’t. The second half, your pre-retirement and retirement years, can have layers of difficulty that are far more unpredictable and uncontrollable than the first half.

Sign up for Kiplinger’s Free E-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.
Why generating reliable income in retirement is so tough
During the first half of your financial life, you collect your paycheck, figure out how much you can afford every month to contribute (wealth contribution) to your nest egg, and carefully contribute that amount into your 401(k) or some other retirement account (wealth accumulation). You’ll likely run into a few financial obstacles in the first half, such as buying a house and the expenses that come with having children. And as you move forward, you might choose to broaden the asset allocation in your portfolio. But even if you make an investment mistake early on, you’ll have a good chance of catching up, because you’ll still have that paycheck coming in.
In the second half of your financial life, things tend to get more complicated. The consequences of making a mistake can be more costly, because now you’re taking money out of your accounts regularly (wealth distribution), and you no longer have your steady paycheck to invest.
Many of the obstacles are the same during one’s entire financial life, but new ones can appear during the second half. There are many specific reasons to consider working with a financial adviser during this second half, including these top seven:
1. Creating income.
When you don’t have that regular paycheck anymore, you lose your safety net. Instead, you must create income from the money you invested and make it last as long as possible. You’ll get a monthly boost from Social Security and/or maybe from a pension. But mostly it’s up to you and your adviser to figure out when and how much you’ll need from your retirement accounts. If you plan poorly, you could use up your money way too fast.
2. Outpacing Inflation.
Inflation has been pretty low for some time now, but experts are predicting a rise in the near future. Even if it lands at the Fed’s goal rate of 2% (and that’s lower than most are forecasting), you’ll see a decline in your purchasing power and, consequently, your standard of living. Most people think they won’t need as much when they’re retired, but even the basics will cost more. With this in mind, you’ll need to keep your nest egg invested but safeguarded against the unexpected.
3. Guarding against the unexpected.
The market is hitting record highs right now, but that can’t last forever. Whether it’s the inevitable market correction, some world political event or a natural disaster that sends things into a spiral, you have to be prepared. To be a success in the second half, you must understand your capacity and tolerance for risk. You won’t have as much time to come back if the market tanks when you’re in the retirement red zone, the 10 years before and after retirement.
4. Factoring in longevity.
Thanks to healthier lifestyles and medical breakthroughs, life expectancy for Americans has increased significantly. According to the Social Security Administration, a 65-year-old man today can expect to live, on average, until age 84.3, a 65-year-old woman can expect to live to age 86.6, and one out of every four 65-year-olds will live past 90. Naturally, you want to stay in the game for as long as possible, but that also means your investment portfolio may have to last for 30 years or more. If you don’t have a plan for guaranteed income, you could end up having to downsize the lifestyle you dreamed of or possibly depend on others for help.
5. Being tax efficient.
Many retirees focus on avoiding taxes in the short term only to be hit hard later on. During the withdrawal phase, the decision about when and where to remove assets should be combined with a plan to avoid landing in a higher tax bracket than you expected and keeping as much of your Social Security out of the taxable equation if possible.
6. Managing health care costs.
According to the U.S. Department of Health and Human Services, 70% percent of those who live past the age of 65 will need long-term care. You’ll need to put a plan in place to cover those costs – as well as your day-to-day health care – so these costs don’t eat up your retirement income.
7. Estate and legacy planning.
Most retirees hope to leave some sort of financial gift to their loved ones and/or a favorite charity (wealth transfer), but the planning often gets pushed to the back burner. You must include this as part of your overall financial strategy to make sure everyone gets what you want them to have and in a way that isn’t burdened by taxes.
How to find someone to help you in your second half
If you didn’t seek help from an adviser before, you’ll definitely want to find someone you can trust to help you in the second half. The problem is most financial professionals practicing today work with clients to accumulate money and make it grow. This is why I have listed the following questions to help you find a retirement adviser who has made the switch and has learned to manage the second half of the financial life for their clients.
Here are some questions to ask as you search for a retirement adviser:
- How are you going to create income for me in retirement?
- How are you protecting me in the event of a market downturn? What happens if 2008 happens again and the market loses 50%?
- How are you going to protect my nest egg but also preserve my purchasing power so I can pay my bills?
Make sure you go with an experienced adviser who’s equipped to help you enjoy the “second half” of your financial life and to wrap things up with a win.
Kim Franke-Folstad contributed to this article.
No part of this communication should be construed as an offer to buy or sell any security or provide investment advice or recommendation. Securities offered through GF Investment Services, LLC, Member FINRA/SIPC, 501 North Cattlemen Road, Suite 106, Sarasota, FL 34232. (941) 441-1902. Investment advisory services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor. SEC registration does not imply any level of skill or training.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Roger Ford has 30 years of experience in retirement income planning. After receiving his formal education at the University of Cincinnati, Ford started his own business, Conservative Financial Solutions. He is a Registered Financial Consultant (RFC) and obtained his certification through the International Association of Registered Financial Consultants. He actively holds Series 6, 63 and 65 licenses and is a licensed agent in life, accident and health and property and casualty insurance.
-
How We Found This List of the Best REITs to Buy Now
Real estate investment trusts, or REITs, are a special class of stocks that are known for their high dividend yields. Here's how to find the best ones to buy.
By Kyle Woodley Published
-
Stock Market Today: Stocks Enjoy a Fed Day Relief Rally
The question now is whether Jerome Powell and other policymakers can get the balance right given all the new noise.
By David Dittman Published
-
Alternative Investments Under Trump: What You Need to Know
As access to alternative markets opens up, retail investors looking to enhance their long-term financial outcomes have more opportunities to carefully consider.
By Henry Yoshida Published
-
Beware of TV/Billboard Personal Injury Law Firms: Here's Why
If you or someone you know is tempted to hire a so-called settlement mill to handle a personal injury case, here are some reasons to reconsider.
By H. Dennis Beaver, Esq. Published
-
How Small Businesses Can Clear the Economic Hurdles Ahead
Shifting rules on taxes, trade and regulation are creating uncertainty for SMBs. Owners can overcome that by focusing on efficiency, flexibility and investment.
By Mark Valentino Published
-
10 Tax Topics Every Retiree Should Know About
A little knowledge can go a long way toward saving on your tax bill. Print this out and take it to your tax planner so you can have a productive chat.
By Michael Miller Published
-
Facing a Layoff? Ask Your Employer These Questions Now
If you're being laid off or forced into early retirement, don't make any decisions without proper guidance — and that starts by asking some key questions.
By Ben Maxwell, ChFC®, AAMS® Published
-
Have $1M+ Saved? Consider a Financial Planning One-Stop Shop
A 'one-stop shop' team — including a financial planner, estate planning lawyer, CPA and more — could serve all of your tax, estate and retirement planning needs.
By Joe F. Schmitz Jr., CFP®, ChFC® Published
-
Five Ways to Safeguard Your Portfolio in Market Downturns
The stock market is nothing if not volatile these days. When it takes a dip, a well-managed, properly diversified portfolio could help you ride out the storm.
By Joel V. Russo, LUTCF Published
-
This Underused IRA Option Offers Tax Benefits and Income Security
Looking to avoid running out of money in retirement? Consider longevity protection provided by a QLAC as a component of your retirement income plan.
By Jerry Golden, Investment Adviser Representative Published