What Questions Should I Ask My Financial Advisor When Retiring?

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Have you been saving for your retirement or you are just hiring a financial advisor to start saving for your retirement, with either one, there are some questions you should ask from your financial advisor to clear things up and help you understand the service you will be getting for your payment. Hiring a financial advisor is the best way to save for your retirement; they will provide you with a suitable retirement plan that will enable you to have a fun-filled and lasting pension without having to worry about cash. Preparing for retirement isn’t only about financial planning, but it also requires emotional readiness; a financial advisor can provide both to their clients. Let us take a look at the top 5 vital questions you asked a financial advisor in preparation for your retirement:

What does my retirement plan look like?

The first step to retirement planning is to envisage what the client considers as the ideal retirement; this considers their hobbies, how to replicate the benefits they get at work, where they would like to visit after retirement (travel plans) and other relevant questions. The methods for retirement will vary from one client to another, so, an ideal and practical retirement plan can be made up based on the comfort and plans of the client. This is more of an emotional preparation than the financial one.

How do I pay you?

This is an important question to ask when hiring the financial advisor for your retirement plan. A financial advisor can receive payment hourly, one-time fee, one-time fee with incentives based on investment advice, and payment based on the amount of money they manage. It is essential to know how your financial advisor will be paid to avoid incurring unexpected future charges, most time, it is advisable to work with a one-time payment fee with your financial advisor.

What am I getting for my money?

If you have decided about the mode of paying your financial advisor, the next big question is to understand what the hired financial advisor is going to offer you for your money. It is crucial to know if all you will be getting is mainly just a retirement plan, or the financial advisor will advise on investment plans. Understanding what you get for the amount you are paying will help you predict what you are getting after retirement.

How much should I save?

Preparing for a retirement plan shouldn’t affect your current expenses, although it might reduce your spending but without changing your primary responsibilities and lifestyle. A financial advisor can help you make a perfect savings plan for your retirement if you ask. The amount to save for retirements will differ based on future plans after retirement, such as travel, healthcare, and hobbies. 

Should I pay off my Mortgage?

This is another excellent question to ask your financial advisor; the decision to retain or pay-off your mortgage depends on how long you plan to live in your present home, the financial cushion, and the ease of getting a home equity loan in cases of emergencies. Based on these factors, a financial advisor can offer you’re the best advice for your mortgage.

In conclusion, a financial advisor is in the best place to help you plan for your retirement; however, you need to understand the extent of the service they are offering to you.

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