Do you want to start saving for your retirement? Experts believe the earlier you start saving for your retirement, the more prepared you will find yourself for your last day of work. So, when you ask yourself, “When should I start saving for retirement?” the answer should always be “Now.” But how do you know how much you should save? For this, you should hire a retirement planning advisor.
These professionals help you plan for the days in which you find yourself ready to stop working. So, how do you go about finding the best retirement plan advisors? Keep reading to start your retirement planning today!
Check the Advisor’s Specialties
Many people become professional financial advisors, but not all of them specialize in retirement planning. As such, you should look for people who have dedicated a large portion of their careers to helping people save for retirement.
You should also look at their certifications. Someone with a Certified Financial Planning (CFP) certification often serves many people who wish to plan for retirement.
Advisors with Chartered Retirement Plan Specialist (CRPS), Certified Senior Consultant (CSC), Chartered Retirement Planning Counselor (CRPC), or Retired Income Certified Professional (RICP) might also serve you well.
Decide Between an Independent Advisor and Private Bank
Do you have a huge bank account? If so, you might want to consider hiring a private bank that works with high net worth people. These banks have unique experience helping wealthier people plan for their retirements.
If you come from a more middle-class family, you might want to find an advisor within your bank. You should keep in mind that banks often encourage you to partake in their own mutual funds. The rates for these funds sometimes get pretty high, so make sure you do your research.
You can also hire independent advisors who work with a custodian to keep your money safe.
Ask About Investment Fees
When you save for retirement, you want as much of your money to go toward your actual retirement as possible. Working with an advisor often helps you grow your savings. Yet, not every advisor results in you getting the same amount of money saved.
In particular, you should consider investment fees. Sometimes, advisors get paid via fees you pay them. They might also charge fees for the investments they choose to make on your behalf.
As such, you should ask about these aspects ahead of time. Ask what percentage of your money the advisor will take as their own payment and how much you will have to spend to invest.
Do Your Research
Before you hire a retirement planning advisor, you need to do your research into their expertise. You should keep in mind that more experience in their field usually means someone has more familiarity with how to invest in a successful manner.
So, look into the advisor’s history in the field. If they have decades of helping people plan for retirement, they might have more success getting you the money you need for your retirement.
Get References or Read Reviews
Next, you should look at what other people think of your potential financial advisor. After all, if this person will manage your money, you will have a long relationship with them. To work well together, you need to have complete trust and confidence in this person.
But how do you tell whether or not a person remains trustworthy with your money? Read reviews and get references.
To see a combination of good and bad reviews, run their name through a search engine and see what comes up on third-party sites. If most people rate their experience well, this person might serve you well, too. Pay attention to the negatives and see if more than one person complains about the same thing.
You should also ask your friends and colleagues if they use a financial advisor. Inquire as to whether they like this person and would recommend other people hire them.
Ask What Type of Clients an Advisor Looks For
Each advisor specializes in a specific kind of client. Some advisors prefer people within a specific income bracket, but others offer their services to people with a lower annual income as well.
So, when you first speak to your advisor, ask what types of clients they want to take on. You should inquire into what kinds of people the advisor usually works with as well. If most of their customers sound like people like you, you might have great success working with them.
Ask How You Will Communicate with Them
Financial advisors often have multiple clients, and they might have other responsibilities as well. As such, you won’t have the opportunity to communicate with them all the time.
Still, you need to make sure your advisor remains available to you. You also need to know how to contact them when you have questions.
So, before you hire someone, ask them how you will speak with them and how often you will meet. This gives you an idea of their availability and might prevent you from hiring someone too busy to take on your finances.
Interview Your Advisors
Before you hire someone, you should set up a time to meet them and ask all of your questions.
At this meeting, come prepared to discuss your financial situation. You should also take note of how your financial advisor behaves and how well the two of you get along. If you don’t like this person, keep looking. You want to find the best fit possible.
Ready to Hire a Retirement Planning Advisor?
If you want to enjoy your golden years, you need to have your finances planned. Hiring a retirement planning advisor can help you save for the future and put your mind at ease.
Do you want insight into your finances? Our team is ready and eager to assist you. Contact us today to learn more about retirement planning and how we can help!