After struggling with my finances for more time than most people realize is possible, I began thinking more seriously about what I could do to make things right. I began working hard to go through and identify challenges that I was faced with, including the fact that I had several kids that cost a lot of money. I began thinking of ways to work on saving cash, and it was really amazing to see how much of a difference something like skipping drinks with dinner and working on finding foods we could make at home could really be. I wanted to start a new website all about creating a more solid financial plan. Check out this blog.
Already Saving For Retirement? 5 Ways A Financial Advisor Can Help Now
If you already contribute to a retirement account, be it through your employer or on your own, you may wonder what a financial advisor can offer. In fact, there is a lot they can help you with in order to ensure that you continue making great retirement planning. Here are five such steps.
1. Rebalancing. Rebalancing a portfolio means monitoring its risk and reward levels at intervals to be sure they are still optimized. Savers with different time frames before withdrawal dates should raise or lower the amount of risk in their portfolios. Of course, this must also be personalized to accommodate each person's personal risk tolerance too. A financial planner can do this step with you or handle it automatically.
2. Consolidating. Many Americans have several smaller retirement accounts, rather than one large one. This could be a combination of IRA choices, past employer plans that were left behind, or even pension accounts. These accounts might make up a significant part of your retirement assets. Are you including them all when planning? Could you consolidate them? Should you move money or close old accounts? A planner will help you corral multiple accounts and use them wisely.
3. Forecasting. Are you saving enough for your retirement? Are you saving too much? Most Americans have little or no idea how to answer these questions. Financial planners have the tools and experience to help you find out.
4. Maximizing. Perhaps you're contributing to an account but you can't save as much as you want. Be sure you use each dollar to its fullest to help maximize the impact of what you can do. An advisor might recommend using the specific tax benefits of a Roth IRA or a traditional IRA. They may help you take full advantage of employer matches. Or, they could work with you to plan how to increase contributions over time.
5. Withdrawing. The way in which you withdraw retirement savings will be another key part of making it last. Should you claim Social Security early and delay withdrawals? Should you do the opposite? Should you take from a Roth account or a traditional account first? These are complex questions, and your advisor can help you find the right answers.
Could you use help with any of these pieces of the retirement planning puzzle? If so, start by consulting with a financial advisor in your state. No matter how much you can or cannot save, they will assist you in making the most of it. Call today to make an appointment.