Where can I get financial advice for my retirement?
By Melanie Higgs
Managing your finances without the help of a professional can be daunting. For many of us, the stress of making financial decisions that have implications for future wealth can be alleviated with the help of one of the many different types of financial advisor/planners.
It's important to understand the value that each of the following professionals can bring to the table.
Actuaries
- typically focus on income during retirement,
- provide a statistical approach to retirement planning,
- are recommended if you are a member of an employer pension plan,
- will discuss options for decumulating your assets to provide an income during retirement, and
- usually charge a flat fee for their services.
Financial advisors/planners
- May charge a flat fee, a commission paid by the investment managers, or a percentage of your investments, or a combination
- Will typically focus on how to invest your savings for retirement, but should also help develop a strategy for decumulating your assets after retirement
- Should be able to advise on when you can best retire while considering your financial needs
Banks
- will only offer their own investment funds and services,
- collect commissions based on how much money you invest, and
- typically charge more for management fees than an independent investment advisor.
Investment advisors
- focus on helping you invest your retirement savings;
- are paid a commission by the managers of the investment funds you select; and
- require a management fee in addition to advisor commissions, based on the size and type of your investments.
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