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Do I Need a Financial Advisor in Retirement?

Have you been wondering if you need a financial advisor in retirement? They can help you avoid making making bad financial decisions.

How does a retiree gain peace of mind while watching the roller coaster ride taken by the current turbulent market? The answer is by seeking the expertise of a certified financial advisor.

It is easy to fall into the trap of making knee-jerk financial decisions that can turn an abundant retirement nest egg into a nest needing a quick replenishing of eggs.

Working with a certified financial advisor in retirement can improve how you manage your retirement assets, as well as save you money by discovering tax-saving ideas that you can apply for both income and property taxes.

Northwestern Mutual released a study in 2019 showing adults living in the United States that hired a financial advisor reported “substantially greater financial security, confidence, and clarity than those who go it alone.”

The financial benefits of working with a certified financial advisor in retirement depend on your unique financial position.

Financial advisors are prohibited by law from promising a certain percentage of return, but as we are about to see, working with a certified financial advisor in retirement generates more income.

The bottom line is you maintain a high quality of life by working with a certified financial advisor who develops a customized plan that matches your needs.

How to Find the Right Financial Advisor in Retirement

Unless you receive a word of mouth referral, the most effective way to find the right financial advisor for you to use a new tool offered by SmartAsset.

The one of its kind online tool connects you with three financial advisors that have completed a comprehensive vetting process. Each of the three financial advisors has registered with the Securities and Exchange Commission (SEC), as well as the appropriate state government agency. The three finalists also have earned the licenses required to offer financial advice to retirees, and they have no valid regulatory disclosures over the previous 10 years.

Let’s look at three compelling reasons to work with a financial advisor during a turbulent market.

Better Investment Performance

Your primary financial goal in retirement is not to sit on your nest eggs, but to grow the eggs into something that has more value. 

According to a Vanguard research study released in 2016, working with a supportive financial advisor can increase your retirement income by as much as four percent. The study broke down the different strategies used by certified financial advisors to generate more income for retirees.

  • Consistent investment strategy
  • Constant restructuring of assets
  • Diversifying assets
  • Putting money into investment options that cost less to manage

Although it appears the investment strategies used by the most successful certified financial advisors do not require a Ph.D. in finance to accomplish, the fact remains a professional who advises you on retirement income completes financial tasks more consistently and more accurately.

Limit Tax Exposure

Outside of inflation, nothing eats away at retirement income more than taxes. Your purposeful financial strategy in retirement should include ways to reduce taxes. A certified financial advisor can put together a rewarding retirement plan that prevents taxes from lowering your income.

An advisor identifies the accounts to pay for education and a second home that trigger the least amount of taxes. Your certified financial advisor can also recommend ways to optimize retirement withdrawals by reducing or eliminating taxes. Kindur conducted a simulation that found a difference of more than $60,000 for the most tax-efficient and least tax-efficient strategy for the same married couple.

A Clear Financial Plan

Managing your financial assets in retirement should never be a guessing game. 

A certified financial advisor will ensure you have more than enough money to cover all the costs associated with retirement. You will gain amazing clarity by learning how to maximize investments and minimize taxes. A certified financial advisor develops a game plan that keeps you within a sustainable budget throughout your retirement years.

Enjoy a bright financial future by working with a certified financial advisor in retirement.


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