I’m a Retired Boomer: 7 Reasons I Wish I Used a Financial Advisor To Plan for Retirement
Written by
Laura Beck
Edited by
Molly Sullivan
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Retirement planning isn’t for the faint of heart, especially when you’re going it alone. Just ask Wes B., a retired boomer who’s learned some tough lessons about managing money in his golden years.
GOBankingRates talked with Wes about his retirement journey and why he now wishes he’d gotten some pro financial advice. Here are seven reasons he thinks a financial advisor could have made all the difference.
Living Longer Than Expected
Turns out, retirement can last a lot longer than you might think. Wes is finding this out firsthand.
“I’m still so active at 73,” he said. “I’m kayaking and hiking and camping. I thought I’d be slowing down but I’m nowhere near it.”
A financial advisor could have helped Wes plan for a longer, more active retirement, making sure his money grows with him — now and into the future.
Healthcare Costs Caught Him Off Guard
Wes found out the hard way that healthcare in retirement isn’t exactly free. “I thought Medicare would cover everything,” he shared. “Well, it doesn’t! That was a rude awakening.”
Don’t wait until retirement to factor in healthcare costs into your retirement plan. If Wes had consulted with a financial advisor, he would’ve put more money aside for unexpected health-related expenses.
“My back surgery would’ve been less of a sticker shock if I had more money in my healthcare savings account (HSA)!”
Taxes Took a Bigger Chunk Than Expected
Surprise! Taxes don’t disappear when you retire, and Wes wasn’t ready for the hit to his income.
“I didn’t realize exactly how much of my retirement income would go to taxes,” he said. “There were probably strategies I could have used to keep more of my money, but hey, hindsight is 20/20. I only hope I can help people now.”
The world of retirement taxes is tricky, which can make a tax-savvy financial planner or advisor a necessary investment. These professionals are well versed in tax law and strategies and can help you save a bundle on taxes.
Putting Too Many Eggs in One Basket
Wes thought he was playing it safe by sticking to what he knew. Unfortunately, that wasn’t the best move for growing his nest egg.
“I kept most of my money in my company’s stock and a few other familiar investments,” he explained. “Now, I know that putting all your eggs in one basket isn’t the smartest move.”
An advisor could have recommended other investments to help Wes diversify his portfolio and figure out the correct balance between riskier and more conservative assets for his retirement goals.
Social Security Timing Troubles
When to start taking Social Security benefits is a big decision, and Wes isn’t sure he made the right call.
“I started taking benefits as soon as I could at 62,” he admitted. “I realize I might have been better off waiting for a bigger monthly check.”
If Wes had talked to a financial advisor, they could have crunched the numbers and helped him make a better decision about when to start collecting Social Security.
Inflation Snuck Up on Him
Sure, Wes knew prices would go up over time. But he didn’t really understand just how much inflation would eat into his purchasing power in retirement.
“The cost of everything seems to have doubled since I retired,” he said. “My fixed income doesn’t stretch as far as it used to.”
A good financial advisor could have factored inflation into Wes’s retirement plan, making sure he stayed solvent well into his golden years.
Missed Out on New Investment Opportunities
The investing world has changed a lot since Wes started saving for retirement, and there are a lot of new opportunities he didn’t know about. Thinking back, he wonders if a financial advisor could’ve helped with that.
“I just didn’t stay on top of that stuff,” he shared. “And I wonder if my portfolio would look different if I did.”
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