This is called a retirement income plan, and there is both art and science to making sure it is done well.
Take money from the wrong account, and you pay too much in taxes or reduce a potential legacy. Withdraw too much, and you’ll run out too early. Start taking it out too early, and you’ll get much less than you could have. Withdraw too little, and that’s a few trips to Paris you could have enjoyed but didn’t.
Well, you get the idea.
So it’s no surprise that setting up a customized retirement income plan is one of the things a good adviser places the most emphasis on when counseling clients nearing retirement.
New numbers show that working with a good adviser can nearly double your satisfaction and confidence, according to recent research by Franklin Templeton Investments:
90% of people who work with a financial advisor are happy with their retirement income plan (compared with only 44% of people who do not work with an advisor).
87% of people who work with an advisor are confident in their plan (compared with only 44% of people who do not work with an advisor).
86% of respondents who work with an advisor said they understand their retirement income plan (compared to only 48% of people who do not work with an advisor).
So while your investment advisor does oversee your portfolio and coordinate your wealth management strategy, that’s not all she does. She also works hard to make sure your retirement is comfortable, fulfilling and built on solid financial bedrock.
Oh, and by the way, she wants to remind you to book that trip to Paris before the end of the year!
Source: Research was conducted in 2013 by the Franklin Templeton Retirement Income Strategies and Expectations (RISE) survey.