question: My husband and I are trying to determine if we need a financial advisor. He is retired and I have been his stay-at-home mom since 2005. Although he is retired, his 401(k) is still with his employer. You don’t need it to meet your monthly obligations. We want 401(k) to grow. However, the market is so volatile that it is now all a safe investment. What are the benefits of hiring an advisor? Or is there another route I should consider? (Are you also looking for a financial advisor? This tool will help you find an advisor that fits your needs.)
answer: It’s great to be able to confidently meet your recurring monthly spending without falling into a 401(k). And leaving your nest egg in your husband’s 401(k) may be enough for your retirement. At some point, you may want to grow these assets long-term so that you have the time you need to travel with family, create memories with friends, or pursue other interests. We may find that we could have funded what we call a valuable asset, a growing financial wealth that could be met,” said a certified financial planner at the Worthwhile Wealth Council. One David Maurice said:
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That means it’s time to look at all your sources of income and expenses, including your 401(k), to think about what you want out of life, not just cover your expenses. Can your 401(k) money be used for unexpected expenses like medical problems? Or would it be easier if you had more money? Need professional help to make it happen?
Hiring a financial advisor means having someone look after everything from cash flow to investments to risk management to estate planning to estate planning. Curtis Crossland, Certified Financial His Planner at Suttle Crossland Wealth Advisors, said: (Looking for a new financial advisor? This tool will help you find an advisor that fits your needs.)
Additionally, think about what you expect from a 401(k). “You don’t rely on it for your current spending, but do you see this as a final legacy? Your advisor may help you visualize the role your 401(k) plays in your overall plan. If your husband is not yet required to receive the minimum distribution, how long will it take to reach the required starting age? What other income and assets do you have? Does it make sense to get them early? are some of the questions to be answered,” said Christina Guglielmetti, Certified Financial Planner at Future Perfect.
Danna Jacobs, Certified Financial Planner at Legacy Welth Care, added: will be In that case, if you don’t have much other income, your advisor may consider a Roth IRA conversion strategy.
“Additionally, in light of potential conversion strategies, you should consider when to apply for a Social Security distribution to take advantage of the 8% yearly increase in profits,” says Jacobs. Other things advisors need help manage their emotional reactions to money (such as being too cautious in a falling market and missing out on low opportunities), or aligning their financial movements with their goals. or helping to address charitable donations, etc. (Looking for a new financial advisor? This tool will help you find an advisor that fits your needs.)
That said, you can do this yourself. If you choose to DIY your finances, Curtis Crosland, a certified financial planner at Suttle Crosland Wealth Advisors, says there are three things you need to make it work. Time, desire and expertise. “If you don’t have the time to learn all you need to do and manage your finances properly on your own, I recommend working with an advisor. That’s why you hire a house: If you don’t have the expertise and don’t want to work hard to get it, you can benefit from working with an expert,” says Crossland.
On top of that, advisors are expensive. Here’s what you’ll pay your advisor: Check out the robo-advisor route as well, as they often cost nothing.
Finding the right advisor is not always easy. But if you go the advisor route, consider and find spots like Garrett Planning Network and XY Planning Network, and ask potential hires these 15 questions. (Looking for a new financial advisor? This tool will help you find an advisor that fits your needs.)
Question edited for brevity and clarity.
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