Is a Retirement Planner Worth It? Experts Weigh In
Written by
Angela Mae
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Gary Dudak
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Retirement planners were once reserved for people who’d already accumulated a good deal of wealth, but they’re far more accessible — and affordable — these days. This is good news for anyone thinking about retirement and wanting to make sure they’re on the right track. After all, retirement planners can provide a holistic, personalized and professional approach to your finances and ensure you can comfortably afford to retire when the time comes.
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“A competent retirement planner can help you create a tailored plan, identify potential pitfalls, and optimize your investments to meet your specific retirement goals,” said Cameron Burskey, managing director at Cornerstone Financial Services. “They can also provide valuable support during market downturns, helping you stay the course and avoid making emotionally driven decisions that could harm your long-term financial health.”
But while a retirement planner can add a good deal of value to you, they’re also a financial investment in your future. Because of this, it’s important to consider what a planner can do for you, and whether or not hiring one is worth the money.
If you’re on the fence about hiring a professional to help with retirement, here’s some personal and professional insight from retirement planners and those who’ve worked with them.
Is a Retirement Planner Worth It?
“As someone who has seen the profound impact of professional guidance, I firmly believe they can be worth every penny, especially for those facing intricate financial situations,” said Burskey. “Allow me to share a personal story to illustrate the value of a retirement planner. A close friend of mine had always been diligent with her savings, but she was unsure if she had enough to retire comfortably. She hesitated to seek professional advice, fearing the cost would outweigh the benefits. However, when she finally decided to consult with a retirement planner, it was a game-changer.”
Burskey continued, “The planner carefully assessed her finances, identified areas where she could optimize her investments, and put her on a sustainable path to retirement. With the planner’s guidance, my friend felt more secure and confident in her financial future, which allowed her to enjoy her golden years to the fullest.”
Scott Lieberman, founder of Touchdown Money, also weighed in on the topic. Lieberman said, “There are certain cases where working with a retirement planner is especially worth it. The perfect person to work with a retirement planner is someone who has a decent amount of savings [and] knows their money could be doing more for them, but doesn’t have the time to carefully research their options and manage their own investments. If that’s you, then go find a retirement planner — and ASAP!”
Bob Chitrathorn, CPFA, CFO and VP of wealth planning at Simplified Wealth Management, also agreed that hiring and working with a retirement planner tends to be worth the cost.
Chitrathorn said, “I might be biased, but I definitely think so and so do all my clients. Planners can help in many different ways besides just helping with investments, allocations and making sure your investments and allocations are aligned with your goals. But they also can help with a lot of intangible things that people may not thing about. Such as helping with life insurance protection to protect your retirement and family. Helping with Powers of Attorney’s and living trusts to protect from the cost of probate and administration of assets. Looking at tax efficient investments, which allow could be more valuable than the cost of a planner.”
How Much Do Retirement Planners Cost?
When it comes to pricing, there’s no one-size-fits-all answer. “The cost for a financial planner or retirement planner is going to vary widely depending on what they are doing for you, and how they bill for their services,” said Jay Zigmont, PhD, CFP, founder of Childfree Wealth.
There are several common pricing models when it comes to retirement planners. “Fee-based planners do not charge you directly, but are paid a commission to sell you products,” said Zigmont. “Fee-only AUM (Assets Under Management) planners charge 1% (or more) of your assets each year to manage your investments. Fee-only, advice-only planners are paid on an hourly, monthly, or project basis. Hourly rates average $250-$500, but there is no ongoing percentage fee or similar charge. You pay for the service you need.”
“Some planners may charge a fee percentage based on assets under management, usually ranging from 1%-3%,” added Chitrathorn. “Always make sure you look at the total all in cost, not just what the planner is charging. Some planners may charge a basic flat fee of $600 a year and upwards, depending on a person’s specific situation and what is needed.”
Other factors that affect the total cost of service include the planner’s expertise level, experience, where you live, and how complex your financial situation is. Speak with several retirement planners about your situation and get pricing estimates from each one to get a better idea of what it’ll cost you.
Best Financial Advice From Retirement Planners
“Retirement planning is a topic close to my heart both professionally and personally. As a retirement expert, I’ve spent years helping individuals navigate their financial journeys, and I must say, it’s been an incredibly rewarding experience,” said Burskey. “Now, as for the best financial advice a retirement or financial planner can give you, I’d say it’s a combination of prudent strategies that align with your unique circumstances.”
When asked about some of the best financial advice a retirement planner can give, both Burskey and Joseph Catanzaro, financial advisor at Oak & Stone Capital Advisors, weighed in. Here’s a combination of what they said:
- Get an early start. “Begin saving for retirement as soon as possible to take advantage of compounding interest and allow your investments to grow over time,” said Catanzaro.
- Diversify your portfolio. “A well-diversified portfolio can help mitigate risks and capture growth opportunities across different asset classes,” added Burskey.
- Set some achievable goals. “Determine your retirement goals and assess what you need to achieve them comfortably. This includes estimating your retirement expenses and the lifestyle you want to maintain,” said Catanzaro. Track your progress, too, and make adjustments as needed.
- Get rid of debt. “Prioritize paying off high-interest debts to reduce financial burdens during retirement,” said Burskey.
- Max out your retirement accounts. “Take advantage of tax-advantaged retirement accounts like 401(k)s, IRAs, or their equivalents, as they offer tax benefits and can help you accumulate wealth for retirement,” said Catanzaro.
- Consider healthcare costs. “Factor in potential healthcare costs during retirement and explore options like long-term care insurance to protect your assets,” said Burskey.
“Remember, retirement planning is not a one-size-fits-all endeavor, and the guidance of a skilled professional can make a world of difference in securing your financial future,” said Burskey. “It’s an investment in yourself and your peace of mind.”
“The best financial advice for you will depend on your unique situation and financial goals,” added Catanzaro. “Always consult with a qualified retirement or financial planner who can provide personalized guidance tailored to your needs.” In doing so, you can ensure that the money you spend on a retirement planner is worth it for you.
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