Financial planning tools and services to put you on the path to the future you want
Your guide to financial planning and retirement
Connect with peers and experts
Get to know the people behind the company and the mission behind the work
Offer financial wellness to the people at the heart of your business
July 1, 2020
The best financial advisors offer many benefits to their clients. However, many of us think that they only provide advice on investments to extremely wealthy people.
Financial advisors can offer you confidence, security and a secure retirement plan.Here are six things that financial advisors do to benefit clients of all levels of wealth.
Boomers working with a financial advisor are more likely to have savings for retirement and are more likely to have set a retirement savings goal, according to the Insured Retirement Institute (IRI) “Boomer Expectations for Retirement 2014” report.
Another survey from the Voya (formerly ING) Institute for Retirement Research reports:
With the current retirement crisis of more than 50 percent of boomers not having enough savings, this is reason enough to find a financial advisor today. However, there are many other compelling reasons to use a financial planner.Research shows working with a financial advisor increases savings.
This recent study actually shows this boost in confidence among baby boomers who work with a financial planner in its survey of boomers on the topic.
In fact, the percentage of Boomers working with a financial advisor who are highly confident in having sufficient savings to live comfortably throughout their retirement years is more than twice that of Boomers who are planning for retirement on their own, IRI data show.
IRI notes that 53% of Boomers working with an advisor report confidence in retirement expectations versus the 21% of Boomers without an advisor who report the same.
Learn more in “Baby Boomers Can Boost Retirement Confidence with One Easy Step.”
The same IRI study mentioned above also found that: “Professional advice has a positive influence on other retirement planning behaviors including:
Just like a regular checkup with your doctor or dentist can spark you to take better care of your health, meeting regularly with your financial advisor is proven to get you to take actions for the health of your finances.
When you meet with a financial advisor:
You pay a doctor to help you manage your health. You hire a plumber to unclog the pipes in your house. You send your kids to school for an education from qualified teachers.
We all use experts for various things in our lives.
A financial advisor is an expert in personal finance. They offer expertise in financial and retirement planning to help you make the most of your financial resources.
Sure you can read all kinds of articles and have some knowledge of personal finance, but financial advisors are experts in this field. You might think of them as a doctor for your short and long term financial health.
“I’ve devoted over 2000 hours a year for 10 years to understanding, analyzing and managing personal finance issues. Compare that to what you can devote to the cause on top of your day job, family and life commitments,” wrote John Buerger, CFP, MSFS on a finance forum.Financial expertise improves your retirement plan.
Human beings are not naturally programmed to manage money – especially our own. The Center for Retirement Research at Boston College has an interesting interactive video that educates users on “Curious Behaviors that Can Ruin Your Retirement.”
According to research, our brains are wired to:
Given these facts about how we work, no wonder retirement planning is so difficult.
One of the biggest benefits of using a financial advisor is that they can help you think and act more rationally and overcome our natural instincts. They can advise you on the best practices and help you make rational decisions for your future.
The answer is likely yes. The benefits are pretty overwhelming.
If you are not ready to talk with a financial advisor today, maybe get started with a retirement calculator. The NewRetirement Retirement Calculator can act like a virtual financial advisor and help you feel more educated about your retirement plan and maybe provide a foundation for a great conversation with an actual advisor.
Do it yourself retirement planning: easy, comprehensive, reliable
Take financial wellness into your own hands and do it yourself retirement planning: easy,
Share this post:
Our weekly newsletter full of inspiration, podcasts, trends and news.
© 2024 NewRetirement, Inc. All rights reserved.
Disclaimer: The content, calculators, and tools on NewRetirement.com are for informational and educational purposes
only and are not investment advice. They apply financial concepts in a general manner and include
hypotheticals based on information you provide. For retirement planning, you should consider other
assets, income, and investments such as equity in a home or savings accounts in addition to your
retirement savings in an IRA or qualified plan such as a 401(k). Among other things, NewRetirement
provides you with a way to estimate your future retirement income needs and assess the impact of
different scenarios on retirement income. NewRetirement Planner and PlannerPlus are tools that
individuals can use on their own behalf to help think through their future plans, but should not be
acted upon as a complete financial plan. We strongly recommend that you seek the advice of a financial
services professional who has a fiduciary relationship with you before making any type of investment or
significant financial decision. NewRetirement strives to keep its information and tools accurate and up
to date. The information presented is based on objective analysis, but it may not be the same that you
find on a particular financial institution, service provider or specific product's site. All content,
tools, financial products, calculations, estimates, forecasts, comparison shopping products and services
are presented without warranty.