I’m a Financial Planning Expert: Here Are 4 Tools That Work Best for Retirees
Written by
Heather Altamirano
Edited by
Chris Cluff
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There’s a lot of advice out there for how to prepare and save for retirement; but, once you’ve got your nest egg, then what? You can’t just ignore your finances and put your accounts on autopilot. Carefully managing your personal expenses and knowing how to properly manage your finances in retirement are just as important.
Luckily, there are many ways to keep tabs on your accounts and investments, monitor your spending and implement sustainable budgeting strategies. Whether you’re about to retire, retiring early or already enjoying your retirement, financial experts recommend the following ways to keep track of your finances.
Fixed-Fee Advisor
Financial advisors can charge hefty fees that add up, but Mike Dion of F9 Finance suggested a way around that.
“For those looking for another set of eyes,” he said, “I highly recommend a fixed-fee advisor to review your financials annually or quarterly.”
Unlike traditional advisors who are paid a percentage of your assets, Dion said these fixed-fee advisors are fiduciaries who are required to give you the best advice. “Plus, as your money grows, your fee doesn’t grow,” he added.
401(k) Manager
Eric Mangold, the founder and wealth manager at Argosy Wealth Management, said your 401(k) is a good place to start.
“There are a lot of great planning tools out there for investors to use,” he said.
If you have a 401(k), Mangold recommended looking to see which firm manages it.
“When you log in to your 401(k) account, many of those providers have retirement calculators, and many of these calculators are a pretty basic way to start,” he continued.
“Some will give you a grade or a score showing you the track you are on for retirement… These calculators are a good start to understanding your retirement readiness.”
Qualified Financial Professional
While Mangold suggested using retirement calculators, he also stressed the importance of finding a professional for guidance.
“Retirement is not a DIY project,” he emphasized. “You will want to know exactly how much money you will need in retirement, and what events could pose a threat to derail your retirement — like a long-term care event, taking care of an aging parent, poor market performance, etc.”
He continued, “This is so unique to everyone since everyone’s financial situation is different. You will want to meet with a qualified financial professional and have a detailed and custom retirement projection built for you. It will show you money coming in the door from your investments, pension, Social Security and other income sources.
“And it will also show you money going out the door in expenses and — don’t overlook this — taxes! Typically the calculators I use with clients are a bit more advanced and detailed versus the readily available ones.”
Investment Tracker
For those who prefer to manage their finances on their own, portfolio-tracking sites or apps can be very helpful.
Dion recommended Empower — “a user-friendly system that connects all of your assets across different brokerages into one dashboard. It has excellent tools to plan retirement spending and withdrawals and provides insight into fees you may not be aware you are paying. The best part is Empower is completely free to use for tracking.”
Other sites or apps to consider include Morningstar, Sharesight and Yahoo Finance.
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