Five Questions To Ask When Meeting With A Financial Advisor About Retirement Planning
North American Precis Syndicate
An experienced financial professional can help you work toward a better retirement. (NAPS)
(NAPSI)—Only about one-third (31 percent) of middle-income baby boomers
feel prepared for retirement, according to a recent study conducted by
Bankers Life Center for a Secure Retirement. However, even if you only
recently started your preparation for retirement or have not yet begun, it is
never too late to improve the outlook for your retirement financial security.
A financial professional with experience in retirement planning strategies
can be an extremely valuable resource in building your plan and helping you
find savings products that can provide a reliable monthly income. Options are
available for different stages of life and financial need. An advisor can
provide a comprehensive review of your financial forecast and help you
develop a plan for the future.
Before your first meeting with an advisor, it is essential to collect
critical information and identify specific, fact-based questions in order to
get the most out of the experience. Here are five questions you should ask a
professional financial advisor about retirement.
1. How do I protect my existing
Before you visit a financial advisor, take stock of your current financial
situation, including your retirement savings accounts and any pension you
have collected. A financial advisor will help identify ways to protect the
baseline of assets you’ll need for primary expenses, and can help
maximize any additional assets with solutions such as annuities, mutual funds
2. How will you help me achieve my
Spend time thinking about specifics—how you envision your life in
retirement and what target monthly income you feel that will require,
especially if you are over age 50 or nearing retirement. Be prepared to talk
honestly about your expectations so that a financial advisor can map out a
realistic plan. For instance, be transparent about plans to relocate after
retirement, a desire to pass an inheritance to family, and any debt. You
should also discuss plans for covering retirement health care expenses and
any plans to work part-time to supplement your income.
3. How do I determine my full
A common misconception is that every person’s full retirement age is
the same. However, while 62 is the earliest at which you can collect partial Social
Security benefits, eligibility for full benefits begins at 66 if you were
born between 1943 and 1954 and can be later, depending upon the year you were
born. This knowledge will help you work with your advisor to see the most
accurate picture of your retirement income needs. Look up your full
retirement age at SSA.gov.
4. How will you and your firm work
in my best financial interest?
When choosing an advisor, it is important to speak with a professional who
is registered. Before you agree to work together, ask the advisor about her
experience, the other clients she has helped and the advisor’s
retirement planning approach. This is an important relationship, so make sure
you select a financial professional who you feel understands your goals.
5. How are financial advisors
Financial advisors are typically compensated in one of two ways:
commission-based, meaning a sum of money that is paid to a financial advisor
upon completion of purchase or sale of securities, or fee-based, meaning a
fee based upon a percentage of assets under investment management. The bottom
line is that either method works as long as there is open communication
between you and your advisor.
Did You Know?
About nine in 10 (87 percent) middle-income boomers who have a financial
professional are either very satisfied or completely satisfied with their
professional, according to Bankers Life Center for a Secure Retirement. To
learn more about planning for retirement, visit www.BankersLife.com.
nine in 10 middle-income baby boomers who have a financial professional are
either very satisfied or completely satisfied with him or her, according to
Bankers Life Center for a Secure Retirement. http://bit.ly/2JAw3mc”
On the Net:North American Precis Syndicate, Inc.(NAPSI)