How Can A Financial Advisor Help Plan Your Retirement?

A financial advisor is also known as a retirement advisor or investment advisor, but they all perform similar functions. Their jobs involve helping individuals grow wealth for their retirement. This is a necessary role to fill because the majority of people don’t have a firm grasp on the ins and outs of investing. An advisor can help you in the following ways.

Create a Strong Investment Strategy
The first meeting you’ll have with your financial advisor will be spent discussing your plans for your future. This is a necessary first step because it will help you determine an accurate estimate for how much money you’ll need to retire. Once you have that estimate, your advisor can help you create a strategy that will help you meet that goal. Generally, this involves investing in high-risk stocks that will yield higher gains early in life when you have the time to recoup any losses you might suffer. As you get older, you’ll adopt a more moderate strategy that will be designed to protect the majority of your wealth.

Create a Plan For Responding to Life’s Emergencies
There are many financial emergencies you’ll face throughout your life that can impact your retirement goals if you don’t have a plan in place. Your advisor can help you set up a high-interest savings account and set up a plan with you to divert some of your disposable income to that savings account each pay period. This is necessary to ensure you don’t withdraw your retirement savings to help pay your medical bills, household repairs or to help send your kids to college.

Counsel You About Other Financial Decisions
Your advisor can help you make the most of your Social Security benefits, save you money on income taxes, and advise you on how best to handle any real estate you own. As economic forces change, your advisor will help you adjust your investment strategy to ensure you stay on course to meet your retirement goals.

While you don’t have to consult a financial advisor, it’s in your best interests to consider it as an option. Without professional guidance, you may make common investing mistakes that could cost you any money you invest. You’ll have more success and learn more about investing by consulting a professional advisor.

Originally posted on andrewcosta.org.