Planning for retirement is becoming more vital as many men and women may simply be in a position where, with their current retirement investments, they have not saved enough money that would allow them the security they need after they have left their occupation to continue with their current lifestyle, or at least, remain at a point where the financial difficulties would not arise in the later portions of their retirement years. Obviously, there are many retirees who simply want to lead a comfortable existence and not have to worry about excessive expenses, like those related to medical costs or every day financial needs, but when it comes to planning through either options like a Roth IRA, annuities, or even an employer’s 401(k) plan, some consumers have found that diversifying their retirement portfolio can be greatly beneficial.
However, some men and women may simply be unsure of what route to take when it comes to planning for retirement. Understandably, personal goals, financial needs, and wants will factor heavily into the type of retirement plan that will be beneficial for a consumer, but also, an individual’s tax bracket when they retire will need to be looked at, as well as, how much they may lose in fees or taxes when they begin withdrawing from their retirement account. While there are options like Roth IRAs that will allow for withdrawals to be tax-free, there are also options like annuities which, while they may be taxed, can provide a steady income for an investor years after they have retired.
Again, when an investor is simply unsure of whether they should choose one particular retirement option or diversify their retirement portfolio to consist of numerous retirement plans which may be either tax-deferred or offer more long-term payouts, a financial planner can be helpful for sending someone on the right path that can help them meet their future financial goals and, hopefully, avoid financial distress later in life.
Yet, there are some who have mixed feelings when it comes to financial planners as, in some cases, the fees associated with a financial planner may put a dent in the overall amount one saves for retirement and, obviously, if a poor financial planner is chosen by a consumer, this might create a situation where savings, earnings, or investment opportunities may be lost.
However, there are some advisors who can offer advice when it comes to choosing a financial planner, and one such article on Kiplinger.com makes mention of the fact that anyone looking for a financial planner will want to look at a variety of options, talk with these individuals and ask about any fees they may require and what services they offer specifically. Also, it goes without saying that consumers must look at an advisor’s experience, any certification they may have from an accredited organization, and there are also resources like Google that can help consumers research the reputability of the company and a planner.
Consumers who may need additional assistance selecting retirement plans will, obviously, want to educate themselves on what different retirement options entail as Roth IRAs are different from 401(k)s, which are different from annuities in various aspects, but all may not be helpful for a particular individual’s situation or future goals. Investors who do research on not only retirement options but a financial planner, if needed, will find that if they are specific about what qualifications a planner must meet, they may be able to better sort out retirement options that will give them more security in the future.