Taxes, healthcare, and inflation are just a few things that can eat into your money. Not only that, you might have a longer retirement than you would think. Nowadays, thanks to advances in healthcare and technology, many people are spending as much as one-third of their lives in their post-retirement years.

How, then, can you plan for a financially confident future? A financial professional’s guidance can help you go the extra mile in many ways. They can help you evaluate your current financial progress. They can also help you spell out your goals, foresee retirement risks, and build personal strategies to assist you in your objectives.

Here are a few ways that hiring a financial advisor or agent can help your retirement in the long run.

Identify and Focus on What Matters

A financial professional can help you get organized and zero in on what matters to you. At first, the idea of planning for retirement in any capacity may seem like an overwhelming task.

A good financial advisor can help you break down the overall picture into bite-sized pieces that you can tackle one at a time. They can tell you what documents you need to bring to the table — and which ones you can leave at home.

Develop Goals and Strategies to Reach Them

A financial professional can help you establish goals, both short-term and long-term. Then they will help you create practical strategies to reach them

A good advisor can help you break down your dreams and aspirations into tangible financial goals. This isn’t necessarily an easy task to do alone.

Creating strategies to reach your goals can be even more difficult. It depends upon what your goals are and how much risk you are willing to take to make them happen.

Evaluate Your Current Progress

An experienced financial professional will help you evaluate, at various points, your current progress. That includes where you are at with reaching your goals. Their guidance will also let you see what else can be done, going forward.

Advisors can help their clients embrace a big-picture focus, stepping back and taking a look at their finances to make sure that they are still on track to reach their financial goals.

They may also have good, practical ideas for how you can reach your goals with less risk. Or you may see a pathway to reaching your goals sooner than you envisioned.

Stay Disciplined and Focused

A financial professional helps you stay disciplined and focused on your long-term goals. It can be easy to go “off-script” financially, especially when it comes to your long-term goals such as retirement.

A good advisor can help you stay on track. That includes avoiding mistakes such as forfeiting your retirement savings to help your kids through college instead.

Source of Relief in Stressful Times

A financial professional can help you stay the course in hard times. They can also be a source of solace in uncertain situations. After all, they have seen other clients go through hard times or rough market periods.

A good advisor will help you not to panic when the markets get rough. It’s easy to lose your head and make mistakes, such as selling all of your equity holdings and using the proceeds to buy bonds or CDs, when the markets tank.

But this typically isn’t a good idea, as you are just locking your losses. Steep market declines, in particular, can wreak havoc on your portfolio. Let your financial professional help you stay strong and give your portfolio time to recover, as is appropriate for your financial timeline.

Answer Your Questions

By working with a financial professional, you can enjoy more peace of mind. They will be on hand for answering your questions and, for that matter, being an expert guide to you. An experienced financial professional will truly take their namesake of “advisor” to heart.

It can be very reassuring to hear that you are in good financial shape. This is one of the most important jobs that advisors have, and if your advisor isn’t answering your questions, then perhaps you should look elsewhere for assistance.

A good advisor will do more than simply spit out rote professional answers to your questions. They will engage you on a personal level in order to gain your trust and respect.

After all, their role is help you to genuinely see financial reality as it is.

Find a Strategic Life Balance

Money isn’t everything, but it can be a great stressor if you let it. An effective financial professional will help you find balance in your life.

By having your financial picture squared away, you will be in a better position to avoid letting money matters stress you out. Good advisors understand that there is more to life than money. They know that you have other things that matter to you personally.

Among other things, your advisor can help free you up to focus on those other things that are important to you.

Plan for Tomorrow, Today

Confident tomorrows begin today. Your financial professional can assist you with proactive planning for your future. That way you aren’t playing catch-up late in the game and feeling the heat while doing so.

As the old saying goes, “An ounce of prevention is worth a pound of cure.” Your advisor can help you map out a financial plan while you are relatively young, so that time will be on your side when you are saving your money.

If you are in your mid-career years, proactive planning can help you still come out on top. The additional time that you will get to compound your money’s growth will make a substantial difference in what you end up with when you retire.

This can be much more effective than having to start planning for retirement when you are on the cusp of retirement. There, it becomes a choice of taking severe measures to save.

On the flip-side, you may only have the chance to accumulate a relatively small amount of money. In turn, it might force you to keep working until later than you had intended.

Expert Knowledge of Solutions

Your financial professional deals with money matters on a daily basis. This is their job. Because of that, their knowledge of products and solutions in the marketplace tends to be superb.

Even if you work in the financial services industry, chances are you aren’t as up-to-date in your knowledge of this arena. It’s not something you would monitor every day. Product features and effectiveness can change as much as week by week.

Your financial professional understands these different options — and they know how to put them all together for an effective plan.

Good advisors always stay abreast of the latest trends and products in the financial marketplace. Chances are they will know the best products to use for their clients and how to use them the most effectively.

For example, a client seeking guaranteed income may settle on a certain annuity product. But the advisor knows that there are better alternatives for higher income payments out there. 

As a result, they will advise the client not to act on their wishes until they have a chance to see these other alternatives. Advisors also know how to effectively integrate their products into a client’s overall financial plan.

The end result? The client can enjoy the maximum-possible benefit from this strategic, personalized allocation.

Honed Professional Knowledge

Financial services is a field with lots of knowledge requirements. Taxes. Investments. Insurance. Risk management. All of these areas of knowledge, and others for that matter, are integral parts of personal financial planning.

Over their careers, advisors and agents have honed their professional knowledge in dealing with these areas. They also have practical experience in putting together retirement strategies.

This is an expertise that is hard to dismiss. For example, most clients don’t have the knowledge or wherewithal to create an investment policy statement and then effectively integrate that statement into their income and estate taxes.

Many people may also be surprised at just how much risk they are really taking with a particular asset class. They might not understand how to gauge if they should be taking that risk.

You may think that stocks are “risky” and bonds are “safe.” But there are different types of risk and safety.

Having all of your money in bonds doesn’t shield you from all risk, as you are vulnerable to the effects of inflation. Interest rate risk may also take a toll on the value of bonds. In fact, it’s impossible to completely shield your money from all risk.

Another area that many Americans struggle in is insurance. You may not know the kinds of insurance that may benefit you. For example, a small business owner will have very different risks to insure and guard against than an employed person.

Advisors are paid to help you understand what types of risk you should be taking. Their role is also to help you determine how much risk you should shoulder. They will know how much insurance you should have and which kinds of insurance you need.

For example, they may recommend that you carry higher deductibles on your home and vehicles and put the savings into an emergency fund. Then if you have a claim, you can use that fund to pay for the deductible.

Finding an Advisor or Agent to Help You

These are just some of the ways that a financial advisor can help you to prepare for retirement. Consult your advisor to see whether you are doing everything you can to prepare for your retirement. They might have some ideas that can help you get there faster.

If you are looking for a financial professional to guide you, good news – you don’t have to go far. Asisstance is just a short click away at SafeMoney.com.

Use our “Find a Financial Professional” section to connect with someone directly. You can request an initial appointment, at no obligation, to discuss your personal goals, concerns, and overall financial situation. Should you need a personal referral, call us at 877.476.9723.

The post How Can a Financial Advisor or Agent Help Your Retirement? first appeared on SafeMoney.com.

For people aged 50 and over, it’s another year closer to retirement. You have spent a long time preparing and setting aside money to be able to retire when and how you want to. After many years of careful preparation and personal sacrifices, this milestone can seem close and yet far away.

If your retirement date is within the next five years, now is a great time to refocus on your retirement planning goals. Here are a few steps you might need to take now for enjoying greater financial confidence in your golden years.

3 Steps for More Retirement Financial Confidence

Establish your retirement goals and priorities. Every plan begins with clearly outlined goals and objectives. Before changing any of your financial strategies, think about your “retirement vision.” Consider these future decision-points:

• What will be you and your partner’s retirement goals?
• Where will you live?
• What activities will you pursue on a day-to-day basis?
• What do you want to accomplish?
• What are the timelines for your goals and objectives?

Most people don’t swing into a 100% work-free lifestyle after they depart from a career or a business. In fact, continuing with part-time work, volunteering, or indulging in personal hobbies are a few ways that many retired Americans stay engaged. You may envision this sort of lifestyle for yourself. Or it may involve activities more like reading and spending quality time on the green. Ask yourself, what will it take to sustain your future lifestyle preferences?

Start planning for those goals. Once you understand your overall retirement picture, then it is time for data-crunching. Develop a current-state financial snapshot and review the financial strategies you have in place. At this point, working with a qualified retirement planning firm firm will go a long way toward creating a personalized plan for your future and peace of mind.

If you don’t have one already, now is the stage to develop a long-term retirement income plan. This should include budget projections for what you will need for fixed-income on a month-to-month basis. On the whole, a retirement income plan will focus on:

• Retirement spending and expenses
• Retirement withdrawals
• Your retirement assets and how they will generate the income you need for long-term, monthly budgetary needs

As you get closer to your retirement date, your need to access your retirement funds will grow. If your current strategies aim toward wealth accumulation and net worth growth, it may be riskier than you would like now. You can work with a professional who understands retirement income planning and examine safe strategies to preserve your money so it’s ready when you need it. As you get closer and closer to your retirement date, you may want to consider shifting your savings into more risk-adverse vehicles so they stay intact.

Start thinking about important retirement milestones. Social Security benefits and Medicare are important decision-points. When you claim your Social Security benefits is likely to be one of the biggest financial decisions you make in your lifetime. You have the ability to claim at age 62. But delaying until you are 70 will increase your benefits by 76% in real dollars (inflation-adjusted) per month. However, you may not be in a position to afford waiting.

With hundreds of claiming possibilities, consulting with a retirement planning strategist to determine what’s best for you may be optimal. As for Medicare, be sure you understand what it covers and what it doesn’t. For instance, Medicare Part A only covers hospitalization, not expenditures falling under general physician appointments or prescription medication. Also, no part of Medicare covers long-term care expenses, such as assisted living costs or in-home personal care services. You will need to review your personal medical history, your family history, and determine what financial resources you may require for future medical needs.

Ready to Get Started on Your Financial Retirement Plan?

With the new year before us, now is a great time to start getting your financial house in order. Get in touch with an independent retirement income strategist at SafeMoney.com to determine the best income and wealth protection strategies for you. And should you have any questions, please call us at 877.476.9723.

The post Planning to Retire Soon? Here are 3 Steps for Greater Financial Security in the New Year first appeared on SafeMoney.com.

As you consider different candidates, conduct careful due diligence. Just like doctors and lawyers and their specialties, not all financial professionals specialize in retirement planning. Any advisor you meet should state clearly their focus on retirement issues, and communicate that expertise. As you meet with them, pay attention to the language and concepts they use – do they speak of the need to plan for income, financial protection, risk management, and lifestyle goals?

Here are some other variables to weigh as you evaluate different Safe Money Advisors to help with your financial future.

5 Steps to Finding the Right Safe Money Advisor

Ask about their background. Before they move into the “safe side” of the business, many advisors and brokers work in other parts of the financial world. It’s not unusual for them to have experience as stockbrokers, traders at big firms, investment analysts, wealth managers, financial analysts, or in other finance-related roles. Another point of credibility is their educational background. Many financial professionals hold advanced degrees in business, finance, or accounting. Be sure to inquire about their prior experiences as a financial industry professional and what their educational pedigree is.

A wide-varying background might indicate an advisor has a first-hand knowledge of specific market cycles or economic conditions. On the other hand, a long track record as an insurance solutions provider or at a brokerage firm can also show knowledge of different insurance products, and what may be solid options for your needs. These experiences can demonstrate their knowledge and credibility. Ask each advisor about their background so you can determine how their expertise may be right for your planning needs.

Assess their credentials. Here’s a simple rule. If a financial professional will be giving a recommendation with certain products, they must hold all required licensing for those products. Because we are discussing Safe Money Advisors, any prospective advisor or broker should have the required insurance licenses for the annuity and/or life products they guide you on and offer.

Of course, this point extends beyond the minimum requirements, to include professional knowledge. There are a number of educational programs in which financial professionals can earn designations. For example, The American College of Financial Services provides courses for many degrees and designations, including:

• Retirement Income Certified Professional, or RICP designation
• Chartered Financial Consultant, or ChFC designation
• Certified Financial Planner, or the official CFP designation
• Chartered Life Underwriter, or the CLU designation – considered the premier designation for insurance professionals

Because laws, regulations, and strategies change, some of these programs have continuing education requirements. Ask your prospective financial professional about whether they hold any designations or advanced degrees. Inquire about what they do to continue educating and updating their knowledge, including how often they do so.

Evaluate their track record. Ask for a list of client references — and make sure to call them! You may also want to get references of people whom your prospective Safe Money Advisor offered advice, but they didn’t decide on any course of action. You can ask them about their experience and their opinion of it. Apart from customer testimonials, you will want to examine the financial professional’s record in the community. Do they:

• Contribute to any community causes or events in a meaningful way?
• Participate in any meaningful activities, such as giving time to host financial education workshops or financial literacy presentations?
• Provide any expert insights or opinions in a newspaper column, trade publication, article mentions, or other outlets where investors can learn new, valuable knowledge?
• Belong to any organizations or groups that have a clear, open statement of ethics and/or business mission?
• Participate in any consumer education projects or information sources — like SafeMoney.com?

If you meet with a prospective Safe Money Advisor or financial professional, check to see if they give you any authored materials — or other sources of information in which they play a part. If they provide these reference materials during the appointment, or after the meeting via email or some other fashion, that’s a good indicator of them being on top of their business.

Ask about their retirement planning philosophy. Another powerful way to evaluate? Ask your prospective Safe Money Advisor/prospective retirement planning professional about how they personally approach retirement planning. Questions such as the following can yield insightful answers:

• What their personal philosophy on retirement planning?
• Does their own retirement plan include any protection, income, growth, or risk management strategies?
• Does their portfolio include annuities and life insurance products?
• Have they given any recommendations to their family members or friends for any similar strategies they suggest to you?
• If they give you a recommendation, is it something they would be comfortable with recommending to their own children or parents?

If you have reached the point-of-recommendation, use our Annuity section and Life Insurance section to ask questions for making a decision.

Clarify how do they advocate for your best interest as a client. On Friday, June 9, 2017, the DOL fiduciary rule began taking effect. Now almost all financial professionals are held to higher legal standards of conduct when offering investment advice on retirement accounts. The DOL rule covers advice on retirement accounts including 401(k) plans, IRAs, 403(b) plans, and other retirement savings plans falling under the regulations of the Employee Retirement Income Security Act of 1974 (“ERISA”). While these regulations aren’t fully in effect yet and are still under federal review, financial professionals are obliged to abide by “Impartial Conduct Standards” as best-interest parties for their clients.

The Impartial Conduct Standards include:

• An advisor or broker acting in your best interests as a client
• The financial professional being required to make no materially misleading statements
• The financial professional receiving no more than “reasonable compensation” for their recommendation(s)

Part of these standards are disclosure requirements. Again, we are talking about Safe Money Advisors, so those would include a description of the advisor or broker’s relationship with the insurance company (whose product is being recommended), any fees and/or charges associated with the recommended product, and even disclosure of sales commission from the insurance company. 

So, financial professionals offering insurance products are to be best-interest advocates in this new regulatory environment. Be sure to ask your financial professional exactly what measures they take to ensure they are acting in your best interest. How are those steps and measures being documented? Disclosure of potential conflicts of interest must be disclosed to avoid giving materially misleading statements. So be sure your financial professional communicates these clearly.

Whether your prospective Safe Money Advisor is an independent or captive financial professional is important. Independent advisors and brokers can offer annuity and life products from multiple insurance carriers. In contrast, captive advisors and brokers must rely on one or a few parent companies for their product shelfs. Learn more about the difference between captive and independent advice, for more details.

Safe Money Advisors: Retirement Planning Help a Click Away!

We hope these guidelines are helpful to you in your search for a financial professional. If you are ready for personal guidance, a number of financial professionals are listed here on SafeMoney.com, for your convenience. They can help you discover powerful safe strategies to protect your wealth, generate reliable income, and enjoy a predictable lifestyle for your retirement years.

Use our Find a Licensed Advisor section to connect with someone directly, or to request a personal goal-setting appointment. Or if you have any questions or need a personal referral, please call us at 877.476.9723.

The post Safe Money Advisors — 5 Steps to Finding the Right Financial Professional for You first appeared on SafeMoney.com.