Retirement planning is not for the faint of heart, especially if you do it alone. Just ask Wes B., a retired boomer who learned some hard lessons about managing money in his golden years.
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GOBankingRates spoke with Wes about his retirement journey and why he now wishes he had received professional financial advice. Here are seven reasons why he thinks a financial advisor could have made a difference.
It turns out that retirement can take a lot longer than you might think. Wes discovers this firsthand.
“I'm still so active at 73,” he said. “I'm kayaking, hiking and camping. I thought I was going to slow down, but I'm nowhere near it yet.”
A financial advisor could have helped Wes plan for a longer, more active retirement, and ensure his money grows with him – now and in the future.
Wes found out the hard way that post-retirement health care isn't exactly free.
“I thought Medicare would cover everything,” he said. “Well, that's not true! That was a rude awakening.”
Don't wait until you retire to include healthcare costs in your pension plan. If Wes had consulted a financial advisor, he would have set aside more money for unexpected medical expenses.
“My back surgery would have been less of a shock if I had more money in my health savings account (HSA)!”
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Surprise! Taxes don't go away when you retire, and Wes wasn't ready for the hit to his income.
“I didn't know 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 just hope I can help people now.”
The world of retirement taxes is tricky, making a tax-savvy financial planner or advisor a necessary investment. These professionals are well versed in tax laws and strategies and can help you save a lot of taxes.
Wes thought he was playing it safe by sticking to what he knew. Unfortunately, that wasn't the best move to grow his nest egg.
“I kept most of my money in my company's stock and a few other well-known investments,” he explained. “Now I know that putting all your eggs in one basket is not the smartest move.”
An advisor could have recommended other investments to help Wes diversify his portfolio and find the right balance between riskier and more conservative assets for his retirement goals.
