Questions you should ask your financial advisor about retirement

The journey towards retirement isn’t always the same for everybody. Some people can actually manage to comfortably handle their money well even past retirement and for others, there is need to work with coaches and advisors.

For the majority though, it would be wise to hire an advisor especially when it comes to figuring out major changes that come with like retirement. When you reach that point where you can no longer work properly the way you used to, you need something to fall back on and the best way is to start planning now.

Once you find a qualified financial advisor, you need to tackle the tough questions about retirement so that you will be financially comfortable when that time comes.

Their sole purpose is to help you navigate your finances properly and it is therefore a good idea to ask certain questions such as the ones below:

·         Are you a fiduciary?

A fiduciary, in this case, is someone who is legally required to act in their client’s best interest. Not all advisors are required to do this and some even have different motives which you might not know about.

The reason you need to have this clarified is because they can influence your decision into buying certain products or services they are earning from which may not always be of use or benefit to you.

Retirement is a huge deal and you need to be sure that this is someone who you can trust with your financial future.

·         Where am I now and where do I need to be?

Everyone is on different levels when it comes to their finances. We all have different strengths and weaknesses and our long-term goals vary.

Having an advisor is important because they have expert knowledge about how money works and they are able to give you realistic answers based on where you are currently in your finances.

They can give you the details on how your retirement will look like and the best customized plan that can work for you.

·         What is the difference between pre-retirement and post-retirement investments?

Working with an advisor can teach you a lot about investing. There is a difference between the direction you should take when you have a couple of years before you retire vs when you are about to officially retire.

You need to understand the fact about this so that you can prepare yourself better and avoid making decisions that aren’t wise for your particular situation.

·         What are the common mistakes clients make?

Financial advisors have a high level of qualification and experience. Throughout their career, they have probably come across different types of clients and I’m sure they have a couple of tips they can share with you based on what they have learnt so far.

They should help you make the right decisions based on what they have been trained for but they can also give you a few real-life lessons about planning for retirement.

·         How will we work together long-term?

You need to know how everything works in case changes come along the way. They might decide to change jobs or retire at any point and you need to be sure how your money will stay protected in case this happens.

Get to understand these details for peace of mind and proper planning.