Planning for your retirement is not something you should neglect. If you want to have a comfortable retirement, you should start planning as early as possible. People choose the assistance of a financial planner so that they know exactly if, and when they can retire. However, there are some mistakes that most people make when planning for their retirement. Here’s what you should avoid doing.
One of the first things you need to decide is how much income you need to maintain your current lifestyle when you retire. Most people don’t know, or they make inaccurate assumptions without taking into account inflation and other factors. If the amount you need to maintain your current lifestyle during your retirement is too much, it means you will have to make adjustments to your retirement plan. On average, you will need about 80% of your current annual income for your retirement. Most people have no clue of how much they will need for their retirement. Do not leave anything to chance, make accurate calculations of how much you will need to sustain your lifestyle during retirement.
Higher Healthcare Costs
Another area that is overlooked is the higher health care costs you will have to bear during your retirement years. When you are planning your retirement, you will need to add these costs to your plan. Overlooking healthcare costs could leave you strapped for cash when you need it the most.
Long-Term Care Plan
Caring for an elderly parent takes a toll on their loved one and their savings. The US Department of Health states, “About 70% of people aged 65 and above will require care at some point in their lives.” It is vital to take long-term care into consideration and include it in your retirement plan.
John Labunski is the founder of LWA Fund Advisors, LLC. He is also a former executive for such prestigious corporations as P&H and Goldman Sachs. Labunski and iconic radio personality Michelle Wright currently co-host the popular Wealth911.com talk radio program.
Choosing the right financial planner is important if you want the right advice in managing your wealth and assets. Financial planners can advise clients on how to invest, save and see their investments grow. However, you should not mistake stockbrokers for financial planners. The first thing to look for in a financial planner is the CFP (Certified Financial Planner) sign. Financial planners with a CFP have passed a strict test conducted by the Certified Financial Planner Board of Standards. Here are a couple of things to look for in a financial planner.
CFP and Recommendation
Of course, the first thing to look for is a certified financial planner as it is a sure sign of credibility. However, to be on the safe side, it is best to ask friends or colleagues for recommendations. It’s best to go with a financial planner your friends or colleagues have worked with in the past. You might want to consult several financial planners before deciding on who to hire. Most financial planners will offer a free consultation.
Choose a financial planner who has relevant experience. If you are looking for someone to assist you in offshore investments, then make sure the financial planner you choose has experience in that area. It would be futile to hire a financial planner who has no experience in offshore investment and asset protection.
Financial planners can either be fee-based or commission based. If you are just starting out and do not have too many assets, you might want to go with a financial planner who charges by the hour. Financial planners who charge by the hour are building on their practice, which means that they will pay more attention to your needs. This is because they need your recommendation to grow their business.
When choosing a financial planner, look for fiduciary. The planner should pledge to work in the client’s best interest at all times, and not have his hidden agenda.
John Labunski is CEO and President of Lincoln Wealth Strategies, a firm dedicated to aiding clients safeguard and grow their investments. He has enjoyed success in executive management positions throughout his career. He also enjoys success as the founder of Lincoln Wealth Advisors LLC and LWA Fund Advisors LLC.