It can be a tough job.
Us poor financial advisors sometimes get a bad wrap! We are made out to be less than honest in many commercials, advertisements and frankly by our own kind.
But some of us aspire to be professionals. To act with honesty, compassion and enthusiasm for our clients. The right financial advisor can be worth his or her weight in gold. You’ll need this type of advisor if you are retired or soon to be retired.
Here’s why you want a financial advisor in retirement:
Your second subconscious. I’ve said it before. Your financial advisor’s job is not to pick the best investments. Rather it is to modify your behavior. To keep you from selling out in a panic. To keep you from buying a large position in that stock that you would regret. Your financial advisor can help you through the transition of not having a paycheck anymore. They can advise you on the best ways to spend in retirement and from what sources. Far too many mistakes are made by investors that let their emotions get the best of them.
Financial planning for life. Many retirees would like to focus on enjoying living rather than thinking about numbers and spending. Retirement will be way more fun gardening, playing golf or volunteering. So leaving the number crunching to your financial advisor is a huge plus. Let the pro handle the worries about how much you can spend on those vacations and grandchildren!
The alzheimer’s effect. Even if you are able to keep your cool in bad markets and do your own planning, there may come a day when your cognitive abilities prohibit it. Financial advisors look for signs that could cause problems. Take care of getting power of attorneys situated before something happens. If your advisor suggests one, then heed the advice. I’ve had clients that made bad decisions because they were slipping into dementia.
Wrangling your spending. One of the hardest things to tell clients is that they need to curb their retirement spending. I’ve talked to retirees that really struggle with the transition from saving to spending. They feel guilt for not saving anymore. Creating a proper spending plan is an Article for approval form not to be taken lightly. A lot of worry can be saved by having a financial advisor wrangle in your spending and develop a plan.
Retirement can be an awesome time in life or a ton of stress worrying if you’ll outlive your savings. Don’t put yourself through that. If your are retired or retiring soon, go find a good financial advisor to help make sense of it.
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