Seven Reasons To Have A Different Type Of Financial Advisor In Retirement

It isn’t your grandparents or even parents’ retirement.  With expanded life expectancy, there is potentially 25 to 30 years in the fall season.  It is rare that you will “live off the principal” or even adhere to the “4% distribution rule” depending on what you want to accomplish for your lifestyle, liquidity, longevity and legacy aspirations.  It is no longer stepping over the retirement line in the sand financially, but constant course corrections of what life puts on the path.  We are changing the narrative from “aging” to “staging” and the financial journey is no longer a plan but a process.  Along with the new retirement landscape there is a new breed of holistic life advisors and Certified Financial Planner practitioners (CFP) that will help you navigate the transitions.  Here are some of the ways they will guide you as you transition from the accumulation season of life to the distribution season.

When the Sh.. hits the fan:  A financial life advisor will be there for you when the tough stuff happens – the death, divorce, disability, health scare, or market tumult to name just a few of the lifequakes that you might not see coming.  Since they know you and your family, they will walk you through the financial malaise and guide you through the maze of emotional decisions that ensue. They will be an empathetic listener, advocate, educator, strategist and guide for your family.

Emotional and Behavioral Guidance: Transitioning into retirement can bring about emotional and psychological challenges, especially concerning financial matters. Your identity around how money comes into your life needs to shift along with your asset allocation.   A holistic financial life advisor can provide valuable support and guidance during this period, helping you make informed decisions, avoid common pitfalls, and manage any anxiety or uncertainty you may experience. They can connect you with additional resources such as retirement or life coaches.

Strategic Retirement Income: One of the crucial aspects of retirement is determining how to generate  sustainable income throughout this stage of life. A financial advisor can assess your various sources of income.  This may include continued work, real estate income, pensions, trust assets, Social Security, brokerage, and retirement accounts.  This is not a one-time plan and will change on an annual basis to create a strategy to maximize and optimize these income streams.

Investment Management: As you approach or ebb your way through your fall season, your investment strategy needs adjustments to align with tax and economic environment alongside your changing goals and risk tolerance. An experienced financial advisor can review your investment portfolio, assess its suitability for your retirement objectives, and make appropriate recommendations. They can help diversify your investments, manage risk, and provide guidance on asset allocation to ensure your investments align with your desired income needs and time horizon.

Philanthropic Intentions –  The landscape of philanthropy and giving is changing.  Shifting from simply “saving on taxes” to “Impact giving”, a Financial Life Planner along with other professional team members can build robust strategies for your giving.

Tax Planning and Optimization: Taxes can significantly impact your retirement income and overall financial situation. A CFP® can help you understand the tax implications of different financial decisions and assist in creating strategies to minimize your tax liabilities. They will work alongside your CPA to be pro-active in your tax planning.   They can recommend tax-efficient investment options, guide you on charitable giving, and help with estate planning to minimize taxes on your assets.

Estate Planning and Legacy Goals: Life happens, and it is essential to visit and revisit your desires for the distribution of your assets and leave a legacy for your loved ones. A financial advisor will work with you and your estate attorney to create an estate plan that outlines how your assets will be managed and distributed after your passing. They can help minimize estate taxes, ensure your assets are protected, and assist with setting up trusts, wills, and other legal documents.

It is time to look at this stage of life differently, educating yourself on the changing sources of funding, focusing on personal fulfilment, purpose and meaning and addressing the costs of a longer life.  Find the right advisors to guide you with this important season of life that reflects a desire for greater autonomy and flexibility.

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