Financial Planner Retirement

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Financial Planners - The price of the good life

If your retirement financial planner says you can expect a withdrawal rate of 10%, I am afraid you will have to start working again. If the market doesn't perform up to expectations, you could drain your savings in a mere 15 years. That means when you reach 70, you could be looking for work again in a market where your skills have one-tenth of their former value. This is the type of retirement financial planner you should avoid. Seek help only from a professional financial planner capable of providing you with a sound financial plan.

A great retirement begins with a solid financial plan rolled out from the first day of your working life. However, it is never too late to start financial planning. A comprehensive financial plan would have intelligent asset allocation, tax management, responsibly calculated withdrawal rates and adjustments for inflation.

Financial Planners - Having a Diversified Portfolio

Prior to hitting the beach; make sure your portfolio has some cover. Consider spreading your investment. Volatile winners can help you earn quick money to invest in relatively stable blue-chip dividend-payers with a strong operating track record.

You don’t have to invest all your money in equities, try having a healthy mix of portfolios of equities, bond funds and Treasury Inflation-Protected Securities (TIPS).

Let’s move on to the all-important withdrawal rate. History has proven that a financial plan allowing a 4% annual withdrawal rate is a great place to start. Your financial planner should educate you as to which accounts should be used up first, how to steer clear of big tax hits, and how to keep pace with the government's minimum distribution requirements. These details are what your retirement financial planning is all about.

Your Retirement Financial Planner

Preparing your customised retirement plan can be a challenge for any financial planner. A good financial planner will start by running the numbers and experimenting with different withdrawal scenarios. This process will take the guesswork out of your future, helping you avoid that dangerous scenario where you run out of cash.

Always remember to choose a financial planner who you think as most likely to have your best interests at heart.