Retirement can be confusing no matter how close or far you are from it. Getting the right advice can be hard to come by. Depending on your career and many other factors, your retirement plans could be very different from your friend’s with different professions. Retirement is not a one size fits all type of situation. Start early to get everything figured out, or you may end up working longer than you had thought.
Advisor
Setting up your retirement yourself may seem like a good idea, but it is not. Retirement can be complicated, and some individuals are experts. Listening and taking their guidance is needed so that there are no surprises when the time comes. Taking the advice of your parents or others that have been there is not enough. Laws and rules change, and you need to have the most current information. So the first step is to decide to find the advisor for you.
Specialty
Retirement advisors are not all created equal either. They can have specialties. It seems like retirement for everyone would be similar, but that is not the case. Different career paths lead to different retirement paths. Interview advisor to ensure you find one that will be the best for your circumstances. SmartAsset has a tool to match with potential advisors. Take a look and see if you find the right one for you.
Credentials
Many people have great advice when it comes to finances and managing money. However, this does not mean that they are licensed to give that advice. Like other careers, there is a test that they need to do to get the necessary credentials to be a financial advisor. Some choose to go a step further and become a CFP or Certified Financial Planner. When interviewing advisors, asking about their credentials should be the first thing you discuss, along with their specialties.
Fiduciary
Do you know what a fiduciary is? If you are looking for a financial advisor, you will want this definition. A fiduciary is bound to act in another person’s best interest. Like all other jobs, an advisor works for the paycheck as well. Some will try and use managing their client’s assets to their advantage. This is why finding an advisor that is a registered fiduciary is an intelligent move.
Shop Around
Taking all the previous information into account, you should not hire the first advisor that you see. Just because they work well with your coworker does not mean that you will have the same experience. Take your time and find the right match. This individual will be helping you prepare for your more vulnerable years. You want it done correctly. An advisor can help give you the peace of mind that you will not need to stress over your retirement. It may take a few to find the one for you.
Start early preparing for your retirement with the right team. Don’t get to retirement with a plan.