Should You Hire a Retirement Specialist and How?

Retirement presents special challenges when it comes to personal finance for retirees. Fortunately, they don’t have to face those challenges alone. Retirement specialists are financial advisors who focus on helping retirees and those approaching retirement about the best way to use their current and future assets to live comfortably after their working years are over. Consider hiring a retirement specialist today if you want help with your own personal plan for life after work. Retirement planning isn’t easy–it takes careful planning that starts now!

Why do you need a retirement specialist?

A retirement planning specialist has a great deal of experience and knowledge about the various issues that confront retirees. They have no vested interest in a specific investment or retirement planning approach, so they can objectively discuss all the possible options with you and provide guidance on what might be the best way to use your resources to help you enjoy a happy, healthy retirement.

Difference between financial advisors and retirement specialists?

Generally, financial advisors main focus on capital growth while retirement specialists focus more on capital preservation. A retirement specialist can provide you with more guidance than a financial advisor who may not have the necessary deep knowledge of all the topics related to your specific retirement planning needs.

When it comes to personal finance a retirement specialist focuses more on helping clients in key areas that a financial advisor just doesn’t typically provide such as:

Tax planning 

In retirement, tax planning is also different. Retired people may have more alternatives for managing their taxes than working individuals do. Additionally, because many retired individuals have amassed much of their wealth in tax-deferred accounts such as IRAs and 401(k)s, it’s critical to plan the timing and amount of withdrawals from these accounts to minimize taxes.

Retirement advisors must also consider the impact of mandatory withdrawals requirement on retirees who reach the age of 70 and a half. This is an important responsibility of retirement specialists to keep in mind because failure to withdraw the required minimum distribution amount could result in an income taxes penalty.

Estate Planning

Two more retirement problems that a retirement specialist may address include estate planning and housing requirements. A retiree’s financial situation, as well as his or her own preferences, will influence decisions about whether he or she will age in place in their own home or reside in a retirement facility of some sort. A Reverse mortgage could be used to provide a source of income in retirement or pay for other expenses.

Retirement Savings

If you have been saving money for retirement in your retirement accounts, you likely have a multitude of options to consider for how you will use your account once you retire. A retirement specialist can help you determine the best way to manage and protect your money so that it makes sense in terms of achieving your long-term financial goals while making sure that you’re not spending more than necessary should unexpected expenses arise.

Long-Term Care

Another major problem is long-term care. Medicare does not cover the majority of long-term care costs, whether they are incurred at home in a nursing facility or assisted living facility. A retirement specialist will be able to advise the customer on whether or not long-term care insurance may play a role in his or her situation.

Social Security 

Many Americans’ most important source of income after they retire is Social Security, therefore many retirement specialists pay close attention to maximizing Social Security benefits. When it comes to making the choice about when to begin receiving Social Security payments, a lot depends on a variety of variables, including life expectancy and other sources of cash.

Healthcare costs

Workers who retire before age 65 are generally not eligible for Medicare right away, and the health insurance provided by their former employer may expire. A retirement specialist will be able to assist you in selecting private health insurance to cover the gap if you retire before age 65.

Another major issue for many Americans is how to pay for healthcare in retirement. Retirees typically become eligible for Medicare at age 65 and may require assistance from a retirement counselor when it comes to Parts A, B, C, and D of the country’s national single-payer health system for seniors.

How to find a good retirement specialist?

To locate the finest retirement specialist for your needs, first, figure out what you want and need in a retirement specialist then search for someone who meets your criteria. Personal recommendations, industry experience, and professional certifications may all play a role in identifying and selecting a retirement specialist. Consider hiring a fee-based advisor rather than one who is paid solely on commissions.

Lastly asking some important questions can help you identify a retirement specialist that will bring a lot of value to the table.

Here are some suggested questions to ask

• What percentage of clients are currently retired?
• How long has the advisor been working with people in retirement?
• When should I begin claiming Social Security benefits?
• Does the specialist have any specialties or focus on particular needs, such as healthcare or tax planning?
• Is it possible for you to offer advice on long-term care insurance?
• Ask about how they get paid

What to expect from your Financial Advisor

When you sit down with a retirement consultant, the first thing you should anticipate is a thorough examination of your entire financial picture. What are your assets? Do you have investments, real estate, bequests, or other valuable resources? What are your liabilities? Do you have any financial obligations, such as mortgage payments, automobile loans, credit cards, student loans, small business liabilities, and so on?

The retirement specialist will then be able to show you a plan that identifies all your income and expenses. This plan should include how much you’re going to spend in retirement during future years, as well as how much money will be required from your savings each year. The plan should also show how long your savings will last based on the anticipated withdrawals.

The Bottom line

Retirement specialists are not exactly the same as financial planners. Generally, a retirement specialist is more focused on helping you with capital preservation during your retirement years while a financial planner is more focused on capital appreciation. They also have a better understanding of the retirement process and how to make smart, rational financial decisions.

If you’re planning for retirement, it’s important to understand how your needs will change and what you should expect from the experts managing your money during those years. Work with a specialist that will be able to help you achieve all your financial goals such as maximizing Social Security benefits, reducing healthcare expenses, and more.

It’s important to find someone who understands your specific financial needs so you can retire in comfort. You’ll also need to do some due diligence and carefully assess individuals by asking important questions. The best retirement specialist will be able to help you take away some of the anxiety that comes with adjusting to life after work.