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Questions to Ask Your Financial Advisor About Retirement

Moneymagpie Team 17th Nov 2022 No Comments

Reading Time: 2 minutes

An important topic to discuss with your financial advisor, regardless of how old you are and how long you have been working together, is how to plan for your eventual retirement. Whether that day is approaching soon or just a glimmer of hope in the future, it is essential to develop a plan to reach your goals. Working with a financial advisor can be a great way to receive recommendations and guidance for the future, and here are some questions you can ask them about your retirement readiness:

Are my savings on track?

Retirement planning can be intimidating. Many assume retirement is either too far away to think about or think that they are so behind, why bother? But it is never too early or too late to save for retirement. While there is no magic number for everyone, your financial advisor should be able to analyze your debts, savings, assets, and lifestyle to help come up with your retirement goal. They can also provide you with benchmarks to hit depending on your current savings, your income, and how far off your retirement is.

What else can I do to prepare?

A financial advisor can provide tips and guidance to reach your retirement goals with your personal circumstances in mind. These could include anything from analyzing your 401(k) account to suggesting forms of passive income that could provide you with a stream of money into your retirement. When asking what else you can do to be financially ready, it can be helpful to keep in mind your actual desires for retirement so that you are working towards being emotionally fulfilled, and not just surviving. You should let your advisor know what you want to be doing and where you want to be.

What other investments do you recommend?

Understanding your retirement account options and details can be complicated, but it is incredibly helpful knowledge: it can help you maximize your benefits to retire the way you want. Beyond the usual options, like IRAs, pensions, and 401(k)s, you might want to ask your financial advisor what other investment options exist that might make sense for your retirement needs. They can provide recommendations that make sense for your circumstances.

How much should I withdraw from my accounts each year?

While there is no one number for everyone, knowing how much money to withdraw from your retirement account each year is a key to keeping your finances stable and sustainable over time. You don’t want to spend too much money and get stuck in a jam, but you also want to be able to enjoy the retirement that you have planned for and envisioned. There are plenty of general guidelines for how much you should withdraw, but to have a more nuanced plan that considers your life goals, discussing these numbers with a financial planner can be a great idea.

Note: All investments carry some level of risk including the potential loss of all money invested.

DisclaimerMoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.

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Jasmine Birtles

Your money-making expert. Financial journalist, TV and radio personality.

Jasmine Birtles

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