Planning for retirement usually starts simple – plugging in the numbers Retirement Calculator It only takes a few minutes – but can quickly grow more complicated depending on your assets and financial situation.
What is a retirement financial planner?
A retirement financial planner is one Financial advisor who specializes in helping clients plan for retirement. In particular, retirement financial planners can help people create retirement savings and investment strategies before retirement. Nearing and during retirement, the focus may shift to figuring out a withdrawal plan while also accounting for other factors, such as Social securityMedicare, etc Minimum distribution required.
Should you get a financial advisor? Take the quiz.
Tips You Should Consider Hiring a Retirement Financial Planner
If some of the situations below apply to you, a retirement financial planner can be helpful:
You have money in many places, or you have complicated financing. As you accumulate more accounts, assets and financial obligations, planning for retirement can become more difficult. multiple income streams, Equity compensationfor , for , for , . Alternative Investmentsand Inheritance It can also make planning for both the present and the future more difficult.
You’re not sure if you’re saving enough. Do you know if you will have enough in retirement? A retirement planner can help model multiple scenarios and identify any gaps relevant to your situation.
You are about to make or are about to make major life changes. Events that can have an unusual impact on finances, such as a marriage, divorce, inheritance, job change, or selling a home, can be difficult to know how your retirement will be affected.
You haven’t done any estate planning. Part of retirement planning can be deciding how and what you want your money to be distributed after you die. Estate planning It looks like this for your beneficiaries.
Reasons You May Not Need a Retirement Financial Planner
❌ Your financing is very easy and straightforward.
❌ You have expected expenses and a clear investment strategy.
❌ Know your retirement goals and check your progress often.
❌ You prefer a DIY approach with robo-advisors, self-directed investing, or online tools, such as calculators.
How Much Does a Retirement Financial Planner Cost?
The cost of working with a retirement financial planner depends on the advisor’s fee structure, your level of service, and how complex your finances are. Budget is a factor when comparing financial planners, but also consider what each offers in terms of service and knowledge to identify the best fit for you.
Assets Under Management (AUM) | 0.25% to 0.50% per annum for robo-advisors; About 1% for a financial advisor. |
Flat Annual Fee (Retainer) | Normally $2,500 to $9,200. |
Generally, 3,000,000, but the price will vary depending on the service. | |
3% to 6% of the investment transaction amount. | |
To compile this information, we reviewed industry studies on average rates among financial advisors in 2024. These studies include:
We also reviewed the fees charged by the providers reviewed by the NerdWallet Investing Team. | |
