Why You Need a Professional to Help You Plan for Retirement

If you’re like most Americans, you may be managing your retirement planning and investments by yourself. In fact, 62 percent of Americans over age 50 have not hired a retirement planner— but that may be a mistake. Financial planners can help you save for retirement and ensure that your money is invested in ways that are right for you. 

Common Hesitations About Hiring a Financial Planner and Why You Should Reconsider

Here are some points to consider if these are the reasons you’re managing your own retirement portfolio.

“I Prefer to Handle Planning Myself or Let My Partner Handle It.”

If you or your partner have the experience and interest in managing your own retirement portfolio, handling it yourself might be a good option. But many people who manage their own retirement investments don’t understand the markets, investment strategies or asset allocation the way a professional does.

Even if you have the knowledge, you may not have the time to spend managing your retirement savings. If you’re a busy professional, a parent of young children, a caretaker for family members or simply someone who prefers to spend your time on other things, it may be a good idea to hire a financial planner for retirement investments and strategies.

Also, a professional can help you overcome emotions that can cloud your decisions when you’re managing your money. A professional can help you stay the course when a drop in your investment value scares you, or help you see through investments that are tempting with their promises of high returns but seem too good to be true.

“I Don’t Have Any Retirement Savings to Manage.”

Working with a financial planner isn’t just about managing your money. It’s also about gaining knowledge and guidance. You may not even know what your retirement savings goals are, how much you may need, what you can expect from Social Security or at what age you might be able to retire.

Having a plan may be even more important for you, because your funds will need to do more. A professional can help you identify your goals and find ways to meet them. They can help you spot opportunities to increase your savings, grow your income or reduce your expenses. 

“I Can’t Find a Financial Advisor Who Will Take on My Small Portfolio.”

Knowing who to talk to about retirement planning can be challenging, especially if you don’t have much money saved or invested. And you will probably pay a higher fee (as a percentage) than people with more to invest, though the percentage you pay should drop as your investments grow.

If you have a small portfolio, you may want an advisor who can help you create an overall financial plan, not just help with retirement planning and investments. 

To find the right person, you may want to:

• Ask friends, family and colleagues for recommendations.
• Talk to professionals you work with, such as accountants or attorneys.
• Try an online search through an organization like the National Association of Personal Financial Advisors or the CFB Board.
• If you work with a Farm Bureau agent, ask them about the company’s financial advising services. They may be able to help you plan for retirement or can connect you with a licensed advisor. 

Keep in mind that you can choose a local financial advisor if you prefer to meet face-to-face, but you can likely work with someone further away and connect by phone or video, too.

“I Can’t Afford to Hire a Financial Professional.”

Not all financial planners have the same fee structure. If paying for ongoing services isn’t in your budget, you may want to meet with an expert once or twice to develop a plan for your retirement. Once you get on more solid financial footing, you can build a long-term relationship with a financial advisor. That way, you can be sure your money is working for you as it grows.

Find a Financial Advisor at Farm Bureau

Are you asking yourself, “Should I manage my own IRA, 401(k) or retirement savings?” The smart choice may be connecting with a professional for advice. Farm Bureau’s financial advisors can evaluate where you are and where you want to be, and help you put together a plan to get there.