Questions to Ask your Financial Advisor when Planning your Retirement


Getting the Right Advice for a Secure Retirement

You have made that all important decision to retire, what now? This is not a question that you want to ask after you retire. If you plan your retirement well, you should know with a reasonable degree of certainty what your financial status will be before you retire.

There is a perception of retirement as being one of long endless days knitting in a rocking chair or engaging in some other mundane activity. This is, unfortunately, a misguided perception of retirement that many of us have. Like death, retirement comes to everyone, eventually, whether we are ready to embrace it or not. However, this perception can become reality if you fall into the trap of delaying your retirement planning.

You need to start to planning your retirement early. The earlier you start this process the better off you will be in your retirement years. Retirement does not have to be a death sentence if you get the right financial advice and invest wisely, you could enjoy a fun filled and financially secure retirement.

One of the main parts of planning your retirement is to get the best advice possible from your financial planner. Here are some of the important questions and information you should get from your financial adviser.

1. How much and how often do you need to contribute to a retirement fund, personal savings or other investments in order to retire comfortably? Experts have suggested that one needs around 75% of their earnings in order to live comfortably in retirement.

2. What are the best funds available that would maximize your investment? You want to know which plans would, or could, give you the best returns on your investment.

3. How safe are my retirement investments? While there is no absolute guarantee that any financial adviser can give you about long term investments, you can still be provided with the level of risks of each type of investment.

4. What do you stand to gain or lose if you choose to retire early? This would of course depend on you specific financial circumstances, years of employment and policies regarding your specific retirement plan.

5. What is re-balancing? Ask your financial adviser to explaining the reasons for re-balancing your portfolio. Normally, re-balancing is done to bring your investments back on target to maximize performance.

6. Should you choose one plan, a combination of plans and which ones should you choose? Get answers about Annuities and 401(K)

7. What can you expect to pay in fees for the management of your portfolio and other service fees?.

8. How can you draw on your assets for income in retirement?

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Retiring rich or poor

These are just some of the issues you need to be concerned about and some of the questions you need to clarify with your financial adviser. Don't be afraid to ask tough questions about your retirement both from your employer and your fund adviser. Answers to your questions can make a difference between retiring poor and retiring rich. Instead of spending your retirement in a rocking chair, you could be on a cruise to exotic destinations.

Are you ready?

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