People who are planning to retire think they have everything in order but they don’t know what they are missing until they are hit with an unexpected cost. As a professional, there are different types of financial adviser services that are catered to the needs of every individual including retiree.
Currently, majority of financial advisers charge a yearly fee of 1 per cent of the assets they are managing. It goes to say that if your total asset is worth $1 million then the adviser will take $10,000 on a yearly basis. You just have to make sure if the fee they charge is actually tax-deductible as they indicated.If you are planning to retire or know someone who is already retired, there are several reasons why they should talk and consider partnering with a financial adviser.
First and foremost, a good financial adviser will be able to prevent you from taking action on something they think will jeopardize your hard-earned savings. The fact is that even those who think they have full control and knowledge on how to handle their finances can sometimes make a mistake.
According to a certified financial planner, Barry Kaplan, many people do not understand that despite the fact that index investing is simple compared to traditional active investing, it is not overall a simple venture. You have to know the indexes, the overlap, the gaps and the foreign funds involved. This is where things turn complicated. He added that the best way to estimate the financial knowledge you have is to look back on what you did between 2008 and 209 when the markets took a decline.
There are two other reasons for retirees to hire an adviser – taxes and spouses. Majority of retirees have various types of savings and they may have continued income source. It can be in the form of Social Security, taxable accounts, pensions, or tax-deferred accounts. The main challenge for them is to make sure that they have enough to sustain them and the spouse will benefit from an adviser in the event that their partner passes away. If you think a 1 per cent annual fee is too high, you can find other options that offer financial adviser services that will cater especially to your needs.