Retirement 101: Why Do I Need a Financial Advisor?

Are you investing in your retirement?

Yes? Good on you. You’re one step closer to a financially secure life after work. But are you working with a financial advisor to help with the process?

No? Well, you probably want to. Indeed, 54% of people investing in their retirement, without the support of an advisor, wish they had one.

It makes sense. After all, financial decisions can be tricky, especially when you’re planning ahead. How does it all work? How do you know how much you’ll need? How will you ensure your money lasts? How financially secure are you already?

Advisors help with all of this. But that financial advice isn’t free. The costs involved can sometimes put people off.

It’s common to be asked ‘why do I need a financial advisor?’ Let us answer this question once and for all.

Keep reading to discover 6 benefits to working with a financial advisor when planning retirement.

Do I Need A Financial Advisor? 6 Reason’s The Answer’s Always Yes

Check out the following retirement-related benefits of speaking to a financial advisor.

1. You Avoid Mistakes

Can you ever afford to make mistakes with your money?

Thankfully, your money may last longer than you’d expect. In fact, someone with under $500,000 in savings will likely spend only 25% of it in the first 20 years of retirement. That’s good news!

However, it doesn’t mean you can take the risk of making financial mistakes. You may spend less of your savings than you might expect. But first and foremost you need the savings. Incorrect planning will make it harder to set and achieve your goals, which will have a direct knock-on effect on your retirement.

Financial planners are experts in this field. Speak to one to avoid making costly mistakes.

2. It’s a Good Investment

Avoiding mistakes is good news for your savings.

Indeed, you can look at paying for a financial advisor as a financial investment. Sure, it might seem strange to pay for this service when your entire aim is to save money! However, trust that it will pay off in the long run.

The role of an advisor is to help make you money. This is short term financial pain for long term monetary gain. You’ll almost definitely earn the money back, in the form of higher savings, down the line.

3. It Saves Time

Many people lack the time to sufficiently plan their finances for retirement.

The day to day jobs, tasks, and responsibilities all get in the way and make it feel impossible. Remember, the longer you delay this process, the less chance you’ll have of being financially stable when you finish working.

Time-savings are a key reason anyone opts to pay someone to do tasks for them. People pay someone to walk their dog, do their shopping, look after their kids, and plan their schedules.

Financial advisors fill the same role.

You outsource an important, necessary and time-consuming task to a professional.

4. You Lack the Know-How

Do you know how to effectively plan your finances?

Chances are that this isn’t your area of expertise. You may never have budgeted, or set financial goals in your life. Retirement may seem like a distant issue that simply isn’t worth thinking about.

But not knowing what’s required of you will make this crucial task all the harder, and increase the likelihood of error. Conversely, financial advisors are experts in the field. Their entire profession is geared around this single task. It’s their job to understand what you need to do.

Working with one removes the responsibility from your shoulders. You enjoy less stress, secure in the knowledge you’re working with a pro.

5. Realistic Goal Setting

It’s difficult to know how much money you’ll need when you retire.

But it can be even harder to know what you can realistically save. You know you want as much as possible. After all, you want to enjoy your freedom after a life of work! But that intent can create goals that are simply unrealistic.

Of course, your savings are limited by your income and expenditure. You only have a certain amount available to put away for retirement. It’s great to have ideas on how to spend it. However, they’ll only be possible with the right amount of money available.

And that starts with appropriate goal setting.

A financial advisor will look at the current state of your finances and help establish realistic savings goals to work towards.

6. Ensures a Positive Retirement

Retirement is the reward for a lifetime of hard work.

You deserve to enjoy it when you eventually decide it’s the right time.

Often, that enjoyment requires a certain amount of money. Whether you want to travel, take up a new hobby, or start a small business of your own, you’ll need money put away.

As we’ve seen, unfortunately, having the right amount available isn’t guaranteed. A lot can happen that means your retirement fund isn’t what it could have been. Maybe you started saving too late or didn’t put enough away.

Getting financial advice is one sure-fire way to ensure a positive time after work. They’ll listen to your intentions, and formulate a plan to make it possible.

Time to Wrap Up

There you have it: 6 reasons that answer the question ‘why do I need a financial advisor?’

Investing in a retirement fund should be a priority for everyone. Indeed, you owe it to yourself to have the best post-work life possible! But that requires money. This is where financial planning becomes important.

But doing it alone can be difficult. Most people planning ahead for their retirement would like support from a financial advisor. Hopefully, the reasons above have convinced you why it’s a good idea.

Did you enjoy this piece? Are you interested in hiring a financial advisor? Click here to find one near you, and start your journey to a financially secure retirement.

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