Do Retirees Need a Financial Planner?
Many retirees view their actual retirement as an end goal: they’ve done the hard work of saving and investing, and their work is done. But to ensure that funds last a lifetime, financial planning shouldn’t end with retirement. Proper management of finances, bills, assets, and liabilities is a process that should continue throughout retirement in order to match assets to circumstances: unexpected medical bills, major changes in the investment landscape, changing life events, and inflation, just to name a few.
In fact, the post-retirement phase is when many people need sound financial advice the most, particularly if they plan to engage in any significant spending, such as travel, or if they wish to leave a legacy to their loved ones.
A Shift in Focus After Retirement
Once you leave full-time work, your focus needs to shift to wealth preservation to ensure you have enough funds for the basics as well as any post-retirement plans. For the first time, you may want to consider how you might cover the costs for long-term care, if it’s needed, or serious medical bills. People are living longer than ever past their retirement, and factors beyond their control could seriously impact retirement funds. Many people who assumed they would have enough for a good life after retirement find themselves struggling to pay the bills thanks to escalating costs, ill health or other disability. Even the most conservative portfolio can be stressed by a bad market.
Medical Expenses Are Inevitable
Even if you’re healthy now, this may not always be the case. While health insurance and Medicare can help offset major medical expenses, they will likely only cover a portion of the bills in the event of a serious diagnosis or major illness.
Post-Retirement Money Management
Post-retirement, even financially savvy individuals may find themselves in unknown territory. The most basic job includes staying on top of everyday expenses as well as good budgeting. Next, there are the challenges of keeping up with inevitable market fluctuations and understanding when it’s wise (and when it’s not) to make changes to the investments you are still holding. All this happens at the same time that age is advancing, and memory and cognition skills might no longer be as sharp.
The Benefits of a Financial Advisor
Even if you’ve done your retirement savings on your own without the help of a financial advisor, post-retirement may be the time to bring a professional into the mix. A financial advisor like PWA can help guide you through the unique challenges of preserving your wealth through the last stage of your life and avoid the pitfalls of post-retirement money management of your savings, investments, assets, transfer of wealth to the next generation, and even charitable donations.
We are a full-service tax, retirement planning, estate, and wealth management firm in Arizona that can craft a robust retirement plan that will cover you and your spouse, and help you navigate your financial future after retirement. Call 623.77.PRIME for more information.