The Right Retirement Planning Consultant-Financial Advisor or Therapist?
Know what you need when you seek a retirement planning consultant. Make a list of questions you want answered. Some retirement planning consultants have a psychology and therapy background and deal with the issues of transition of working to not working. They address such retirement planning issues as:
Leaving the friendships and social interaction of work
How to use your time so that you feel productive
How to adjust other elements of your lifestyle—exercise, eating, when you wake
If you are concerned about these types of issues than the retirement planning consultant you seek will typically have a PhD in psychology or counseling. On the other hand, many people seek help with financial planning for retirement. Such people would seek a retirement planning consultant with a financial background. They need answers to questions such as:
Do I have enough money to retire
How do I handle my 401k rollover
How do i set up my portfolio for a consistent monthly income to cover my needs
What do I need to do estate planning?
Where should I live?
If your questions and concern are in the financial arena, you want a retirement planning consultant that has a financial background and may have the CFP(r) or ChFC credential. You may find that you need both types of retirement plan consultant—one that has a background in the psychological aspects of retirement and one with the financial background. There are more and more professionals that have both.
Some psychologists have supplemented their knowledge by gaining a CFP(r) credential and gaining the experience to assist you in both realms. Additionally, some professionals from the financial arena have focused on life coaching, an emerging field for financial advisors. They have obtained training through The Financial Life Planning Institute or the Kinder Institute of Life Planning. Here is a synopsis of what a retirement planning consultant learns:
“Within the profession of Financial Planning and advising, a new approach has emerged from a core group founded in the USA by George Kinder and Richard Wagner. Shifting the emphasis of the planning relationship to assisting clients in formulating their “life of choice” first, advisers then establish the financial decisions that will support the unfolding life plan and its financial requirements.”
Start your search with appropriate keywords and it won’t take very long to find the right retirement planning consultant in your area.
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September 19th, 2008 at 12:22 pm
The cozy the relationship, the more costly. I still don’t buy into the concept unless you salary is well above $150,000 single, $250,000 combined.
Most planners/adviser/consultants have products they would like to recommend because you simply didn’t do a very good job of searching out a good deal on your own or, you never did a thing. The better they know you, the better they can tailor their pitch to fit your wallet.
If you spent as much time during that initial visit doing your homework, you will probably find out that you have a middle of the road insurance policy, a decent mortgage and more debt than you would like to have. These planners/advisers/consultants will revamp that strategy and refit you with something much more fee friendly. When all you have to do is what they are going to tell you to do: budget with discipline.
If you are smart enough to earn a lot, you are also smart enough to keep it close.
September 19th, 2008 at 12:24 pm
The cozier the relationship, the more costly. I still don’t buy into the concept unless you salary is well above $150,000 single, $250,000 combined.
Most planners/adviser/consultants have products they would like to recommend because you simply didn’t do a very good job of searching out a good deal on your own or, you never did a thing. The better they know you, the better they can tailor their pitch to fit your wallet.
If you spent as much time during that initial visit doing your homework, you will probably find out that you have a middle of the road insurance policy, a decent mortgage and more debt than you would like to have. These planners/advisers/consultants will revamp that strategy and refit you with something much more fee friendly. When all you have to do is what they are going to tell you to do: budget with discipline.
If you are smart enough to earn a lot, you are also smart enough to keep it close.
September 24th, 2008 at 7:44 pm
Very good point, in fact, many financial planning / wealth management teams are bringing on certified therapists and life coaches to help guide clients to what their true life goals are, and then from there, to what the resulting financial goals should be.
However, any financial advisor should start with questions regarding your goals. Some individuals might need more help, if so, look for an investment advisor that suits your needs. You can go to http://www.claroconnect.com to look for an advisor that specifically suits your needs, whether you are transitioning into retirement, changing careers, getting divorced, or whatever.
October 22nd, 2008 at 9:56 am
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October 23rd, 2008 at 9:36 am
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April 26th, 2009 at 12:51 pm
Thanks again. These are some very important questions to ask when deciding what moves to make.
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May 26th, 2009 at 2:21 am
Thier are alot of things people have to consider for retirement planing. I agree if you know you will like to live in state with less taxes then you could retire sooner but people shouldaim for more than 75% of income since everything goes up not down.
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October 26th, 2009 at 4:14 pm
Very good points. It is extremely important to take a proactive role in the financial planning process. Going to a meeting well prepared will help you get more out of your visit and will help your financial planner do a better job helping you.
November 24th, 2009 at 7:52 pm
Right now Id almost rather take matters into my own hands than seek an opinion of a financial advisor :/
-Jack
December 15th, 2009 at 2:19 pm
Fascinating - the idea to have a financial counselor with an experience in psychological training. it’s something I never would have thought of to even look for. It’s interesting how many factors are involved when getting close to finishing a lifelong career, and the psychological factors I imagine are immense. I’m not close to retirement but my mother and father are. It’s something i’ll recommend. I know they’re quite prepared financially but they’ve owned their own business nearly their entire adult lives, and even inspired me to do the same. I have a feeling that the issues you discussed they haven’t thought of. Nice article!