Nearly 6 million people contribute to a retirement savings plan each year. This is only 24 percent of the eligible population of the country. The average contribution towards retirement savings is less than 4 percent of the disposable income of a household. This is placing many people in a position where it will be necessary to work beyond the traditional retirement age in order pay bills. One solution is to hire a financial advisor to help create a more structured and realistic plan for retirement. There are several reasons to hire an advisor.
No Financial Experience
Even the most well-educated professionals often have a limited amount of knowledge about the financial markets. Understanding the constantly changing world of finance is something that is best left to individuals who have dedicated years to education and learning within the industry. It is always a good choice to turn to a financial planner when personal knowledge of the markets, economics and finance is limited. Making the wrong decisions could have devastating repercussions a decade or more in the future when it is too late to consult an advisor.
Many people have trouble starting to save as early as most experts suggest. Some individuals go through long periods of underemployment that make it impossible to save for retirement. Starting to save late in life is a very good reason to contact a financial advisor. The advisor will look at the reality of the situation and establish realistic goals that will allow a comfortable retirement later. The advisor might also suggest using more aggressive investment options that have the potential to erase some of the years without savings.
Some individuals who are planning for retirement have a very complex collection of assets. This could mean stock options with several employers combined with retirement accounts and tax-deferred investment vehicles. Some people might have to deal with large estates or commitments to businesses…