 Finding the Right Advisor For Your Retirement
Over the course of a lifetime, we work toward numerous goals. But the ultimate financial goal for any individual or family is retirement. From a financial perspective, retirement is expensive, and complex.
Chances are that your grandparents and parents had to think less about retirement income than you or your children. More and more responsibility for a financially secure retirement is falling to individuals versus employers and government. There are many resources and favorable tax savings opportunities which can help individuals build assets for retirement, and taking the initiative to utilize what is available is critical.
Preparing for a successful retirement requires a significant change in mindset from what may serve well during one's working years. For instance, during mid career, the appropriate focus is usually on accumulation of assets in tax-advantaged accounts like 401(k), IRA’s, or education savings accounts, while at the same time protecting loved ones from the financial consequences of a disabling event or premature death.
Retirement presents an entirely different set of risks, and requires a different set of skills on the part of an advisor to help you navigate successfully through your retirement years. Managing your money in retirement is far more complex than during the accumulation years. Beyond the simple “invest for performance” approach, the following factors must be taken into account:
- Determining whether enough assets have been accumulated (or are you on track to accumulate) to support your desired lifestyle in retirement
- Adapting investment strategies to reflect a shift from accumulation and growth to preservation and management of risk through retirement
- Setting up the and building the appropriate retirement account structure to hold your accumulated assets
- Determining a sustainable withdrawal rate from accumulated investments during retirement
- Incorporating a strategy to help insulate your investment portfolio from short term market volatility
- Coordinating withdrawals from all accounts (taxable, tax free, and tax-deferred) and managing income tax consequences
- Determining an appropriate plan for rebalancing investments and managing investment risk.
During retirement, you need to have a financial plan that addresses all of these factors. Otherwise may be courting disaster. Discovering an advisor who can provide genuine retirement-oriented financial and investment advice may be the most important financial decision you will ever make.
At On Course Financial Group, LLC
We have tailored the specialization of our practice around these very issues.
There is no simple formula that fits every investor. Financial planning and investment management as you approach, transition to, and enter retirement requires sophisticated analysis and client-specific planning.
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