Do You Need a Retirement Financial Advisor?
Who to work with for your retirement planning is one of the most important financial decisions you’ll ever have to make.
Nearly half of retirees wish they had started planning earlier, and millions more are falling behind in their retirement savings goals.
Now, imagine the joy of reaching retirement with the confidence that your savings will support your ideal lifestyle. From travelling to building a new dream home, pursuing your goals requires proactive financial planning.
Now is the time to consider working with a retirement financial advisor. But what exactly does that mean, and how do you know if you need one?
Let’s break it down in detail so you can make an informed choice for your future.
Table of Contents
What Is a Retirement Financial Advisor?
A retirement financial advisor specializes in helping individuals navigate the complexities of retirement planning.
While not a technical title, these financial advisors focus on investment management and financial planning as they aim to create a rock-solid retirement plan for their clients.
From social security strategies to minimizing tax, a retirement financial advisor has one goal: to help individuals manage their assets with long-term growth strategies that aim to provide reliable income streams.
What Does a Retirement Advisor Do?
A retirement financial advisor provides professional and comprehensive investment advisory services customized to your unique goals.
Below are some common investment advisory goals for retirees. Keep in mind that your advisor can’t promise specific returns or outcomes.
But this is what they are typically working toward:
Create a Retirement Income Plan: Strategize how to turn your savings into a steady income stream so that you don’t outlive your assets.
Tax Optimization Strategies: Minimize retirement income and withdrawal taxes through careful Roth conversions or tax-loss harvesting.
Investment Strategy and Management: Balance risk and return as your retirement timeline approaches, adjusting your asset allocation to accumulate and preserve your wealth despite market volatility.
Healthcare Planning: Anticipate future costs like Medicare, long-term care insurance, and unexpected medical expenses so you won’t be caught off guard.
Estate and Legacy Planning: Work to ensure your wealth is distributed according to your wishes to help you create a lasting legacy for your loved ones or charitable causes you care about.
What Kind of Financial Advisor Do I Need?
The financial landscape changes dramatically once you shift from accumulating wealth to making withdrawals.
You'll need professional guidance to help you shift toward retirement planning. Fortunately, you have a few options. Each offers distinctive advisory services to help you navigate your unique financial journey and plan your financial future.
Certified Financial Planner (CFP®): A CFP is trained in financial planning, including retirement strategies. They are fiduciaries, which means they are legally required to act in your best interest. Many financial advisors or wealth advisors are also CFPs.
Wealth Advisor/Wealth Management Firm: For those with $1 million or more in investable assets, a wealth management firm can provide holistic financial services, including retirement planning, tax strategies, estate planning, and even services like philanthropic giving and trust management.
Every wealth management firm is different, so identify what you need and make sure the firm can provide you with those services.
Fiduciary Financial Advisor: A fiduciary is legally obligated to act in your best interest—an essential characteristic when choosing who to partner with for your retirement journey. A financial advisor who is also a fiduciary will aim to offer advice that aligns with your financial goals.
Chartered Retirement Planning Counselor (CRPC): A CRPC specializes in retirement planning, including Social Security strategies and retirement income management.
Working with a CRPC may give you added confidence that your retirement plan is tailored to your unique situation.
When Should I Start Working with a Financial Advisor?
The best time to start working with a retirement financial advisor is three to five years before you plan to retire.
However, remember that significant life events (like receiving an inheritance, selling a business, or experiencing a major career shift) could be reasons to seek professional guidance even earlier.
The sooner you start, the more opportunities you have to refine your strategy and build long-term financial security. An early start gives you time to refine your strategy and make adjustments to work towards your financial goals, no matter the circumstances.
However, working with a financial advisor earlier (even in your 30s or 40s) can be incredibly beneficial if you have $1 million or more in investable assets.
The more you have built, the more you have to lose. In addition, if you have over $1 million or more in investable assets and are a high-income earner, there may be investment strategies that can help you minimize tax.
The sooner you start, the more time you have to leverage compounding growth and tax-efficient strategies.
If you have built up investable assets of $250,000 or more, working with a financial planner now can help you build towards your retirement goals. They can also provide advice on gaps in your financial planning.
Their advice may help you to stay on track to meet your desired retirement lifestyle.
Do I Need to Work with a Fiduciary Advisor?
Yes, especially when it comes to retirement planning.
A fiduciary financial advisor is legally bound to prioritize your best interests and only provide beneficial information to the best of their abilities. This is especially important when it comes to your investment management.
Ideally, you’ll want to know that your advisor isn’t selling you high-cost packaged products that don’t actually align with your goals.
In addition, when making decisions about pension options, Social Security claiming strategies, and tax withdrawal sequences, it’s best to work with someone you trust deeply.
How Much Does It Cost to Work with a Financial Advisor?
Fees vary depending on your chosen registered investment adviser and their fee structure.
Typically, advisors charge a percentage of assets under their management (AUM). You may also find some advisors who charge a flat fee or hourly rates. Some advisors may also offer tiered services, so you only pay for what you need.
Make sure you avoid working with advisors who are paid primarily via commissions.
For more insights on fees and costs, check our breakdown on appropriate advisory fees and how to decide what fee model works best for you.
Do I Need to Work with an Advisor in My Town or City?
The world is more digital than ever; location is no longer a barrier when partnering with retirement advisors.
Many top advisory firms, including 360 Financial, work with clients across the U.S. via video calls and secure online platforms. This means you can access the help you need, even if you live in a small town or remote area.
As long as your advisor understands your retirement goals, you can work with someone located anywhere in the country.
Common Questions about Retirement Planning and Working with an Advisor
What is retirement income planning?
Retirement income planning means creating a strategy to turn savings into a steady income after you stop working. It seeks to ensure you have enough money to cover expenses without running out.
Who can help me with tax planning for retirement?
A financial advisor, tax professional, or CPA with retirement expertise can help. They use strategies like Roth conversions and tax-efficient withdrawals to minimize taxes.
How can I find vetted financial advisors?
You can check databases like CFP Board, NAPFA, or FINRA’s BrokerCheck. Look for fiduciary advisors with good reviews and relevant experience.
You can also check out an advisor's reviews and testimonials on Google. Please see 360 Financial’s testimonial page HERE.
Is investing risky?
Investing involves risk.
However, whether or not you define it as "risky" depends on your outlook and the type of investing you're doing.
Your financial advisor should do a risk tolerance assessment and base your portfolio and financial planning upon your risk profile.
In addition, it's important to remember that due to inflation, not investing is also risky. Having all your assets in cash means that you'll see the value of your wealth go down as inflation goes up.
Will an advisor help me plan withdrawals from my registered retirement accounts?
Yes, a financial advisor can create a tax-efficient withdrawal strategy. They aim to ensure you don’t outlive your savings while minimizing taxes.
Final Thoughts
Navigating retirement on your own can feel overwhelming—but you don’t have to do it alone!
An experienced advisor can help you make informed decisions and avoid costly mistakes. We know you want to truly enjoy your retirement years without constantly worrying about your finances. That’s what an experienced financial advisor will aim to help you pursue.
Whether you’re five years out or just starting to think about building your work-optional lifestyle, connecting with an experienced fiduciary advisor like those at 360 Financial can provide clarity as you plan your next chapter.
Ready to take the next step? Schedule a 15-minute call to start building your personalized retirement strategy with 360 Financial.
Summary of Key Points
Start retirement planning early to avoid financial stress later in life.
A retirement financial advisor helps manage savings, taxes, and investment management wisely.
Different advisors offer unique services like estate planning and wealth management.
Fiduciary advisors must act in your best interest legally and ethically.
Working with an advisor can provide you with confidence as they help you to minimize risk and preserve your wealth.
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About 360 Financial
360 Financial is an independent wealth management firm with a team of specialized financial advisors and financial planners. As fiduciaries, 360 Financial’s advisors provide services to business owners, entrepreneurs, and professionals. We help investors with sudden wealth, retirement planning, tax planning, estate planning, and business financial planning.
Headquartered in Minnesota, we serve investors across the US with online and in-person wealth management and financial planning services.
