Financial Advisors Aren’t Just for the Wealthy. Here’s Why You Need One for Your Retirement

If you don’t feel like you are in great financial shape, hiring a financial advisor may not seem like something you should do. In fact, there’s a common misconception that financial advisors are there to help wealthy people figure out how to maximize their investments and minimize income taxes.

While there are, in fact, some financial advisors who do specialize in helping high-net-worth individuals, there are also many advisors who help regular, everyday people make the most of the money they have. And, in fact, it may be even more important for you to have a financial advisor helping you to prepare for retirement if you aren’t wealthy, because it’s more essential that you make wise use of the money you’re earning to set yourself up for a secure future.

Still on the fence? Here are a few key reasons why you definitely should consider working with a financial advisor to make your retirement plans.

People with a financial advisor have significantly more retirement savings

The single biggest reason why you need a financial advisor to help you prepare for retirement is the fact that having an advisor maximizes the chances that you will actually be able to retire someday.

The data is very clear that having a financial advisor makes a big impact on your savings balance. In fact, a recent Northwestern Mutual Planning and Progress Study revealed a startling difference between those with a financial advisor and those without one. People who worked with a financial advisor had around double the retirement savings compared with people who didn’t get professional help. 

Investing for retirement is a huge challenge if you don’t have unlimited money and you have pressing financial needs that you have to fulfill today. It’s easy to let retirement investing slip through the cracks and to save too little. When you work with an advisor, they can help you come up with a comprehensive plan to manage your money so you can afford to make the necessary investments. Your advisor can:

• Assist with budgeting and getting a big picture overview of your finances so you can free up funds to save.
• Help you decide which tax-advantaged retirement plans to use to maximize your savings.
• Work with you to set a clear retirement goal and invest in the right things to achieve it.

Working with a professional is the single best habit you can adopt to maximize your chances of investing enough for your later years. 

A financial advisor can also help you maximize your Social Security income

Most people rely on both Social Security and investment dollars to fund their retirement. Working with a financial advisor can also help you ensure that you make smart Social Security claiming choices.

Research has shown that retirees who claim  Social Security at a suboptimal time end up with hundreds of thousands of dollars less over their lifetime and with far less financial security. A financial advisor can help you avoid this type of costly mistake so you can maximize these guaranteed lifetime benefits. 

You deserve to enjoy your retirement without financial worries, even if you aren’t wealthy. So, find a financial advisor ASAP who can help to set you on the path to a secure retirement.

You’ll be surprised at the difference that it makes in your ability to accomplish your money goals, and you’ll be very glad you took action as you see your investment account balances starting to grow.