While most investors are concerned with accumulating enough assets before leaving the workforce, many don’t consider how they will budget and spend during their retirement years. A retirement planner can help those leaving the workforce with a solid plan that will see them through retirement and help them have the retirement they want.
What Distinguishes Retirement Planners From Other Financial Planners?
The differences between a financial planner and a retirement planner can be confusing, but they’re important to understand when choosing a professional to help you. Financial planners and retirement specialists all receive the same basic training. A financial advisor helps a client accumulate and invest money, while a retirement planner helps their clients formulate a plan about how to use the assets they’ve accumulated during retirement.
Retirement planners need to have deep knowledge about Social Security, pensions, the taxation of retirement income, annuities, reverse mortgages, and healthcare options. They also need to understand the positives and negatives of withdrawal strategies.
How Can a Retirement Planner Help Guide My Retirement Planning?
A good retirement planner will identify the best strategies for making your assets last throughout your lifetime, and help you plan so that you can do the things you want to do in retirement, like travel.
They will create a unique retirement plan that aligns with your full financial picture, including when to take social security benefits, establishing cost-saving tax strategies, and identifying whether you need long-term care insurance. They can also help you consider whether certain financial tools such as reverse mortgages or annuities might be a good fit. They will take the time to understand your specific situation, your goals, and your tolerance for investment risks.
How Do Retirement Planners Charge For Their Services?
Much like financial planners, retirement planners can charge in different ways. Some charge an hourly rate or a flat fee to create a retirement income plan or cash flow projection. Others charge commissions off of financial products that they sell you.
If the retirement planner manages your assets in addition to creating a retirement plan, they may charge a fee based on the percentage of assets managed. It’s best to speak with a retirement planner, and ask how they charge their clients.
How Do I Find a Good Retirement Planner?
When searching for a retirement planner, look for those with longevity within the industry. While a great breadth of knowledge is required to become an efficient retirement planner, regulations within the industry vary. It’s best to look for someone with testimonials, career longevity, and education and licensing within the financial services industry.
The Retirement Income Industry Association (RIAA) offers a Retirement Management Analyst (RMA) designation. These designations are not required, but require rigorous studies and practice to acquire.
Another tactic is asking trusted financial professionals, such as a family accountant or financial planner for a referral.
Planning for retirement can seem daunting when it’s on the horizon. A good retirement planner will help identify the best financial strategies to make the retirement years stress-free and enjoyable.
Seniority is published by Finance of America Reverse LLC. The views expressed in this publication are those of the author alone and do not necessarily reflect the views and opinions of Finance of America Companies. This article is intended for general informational and educational purposes only and should not be construed as financial or tax advice. For more information about whether a reverse mortgage may be right for you, you should consult an independent financial advisor. For tax advice, please consult a tax professional.
