75% of Americans With a Financial Advisor Say They’ll Be Ready for Retirement, Only 45% Without

One of the trickiest things you might have to do during your career is prepare for the end of your career. It’s not an easy thing to save and invest consistently for retirement. And part of the challenge is that it’s hard to put a finger on exactly how much money you’ll need.

After all, there are so many variables. There’s the potential for Social Security cuts. Inflation could drive living costs higher. And healthcare expenses could rise at a rapid pace, eating into your future income.

That’s why it’s so important to make sure you approach retirement with confidence. And working with a financial advisor may be your ticket to doing just that.

How a financial advisor can help

In a recent Northwestern Mutual survey, 75% of Americans who have a financial advisor feel they’ll be ready for retirement. Only 45% of those without a financial advisor feel the same.

If you’re someone who’s not a natural saver and doesn’t know much about investing, then it could pay to work with a financial advisor early on in your career. A financial advisor can help you:

• Manage your income so there’s room for IRA or 401(k) contributions
• Set realistic long-term savings goals
• Choose the right investments at various stages of your financial journey
• Manage retirement plan withdrawals once you’re ready to start taking them

This isn’t to say that you need a financial advisor to retire comfortably. There are plenty of people who manage their own money and do just fine.

However, you need to be honest with yourself as to whether you’re likely to stay on track with long-term savings without an advisor serving as your cheerleader and accountability partner of sorts.

Similarly, you need to recognize that the right investment portfolio could spell the difference between meeting your long-term goals and falling short. If you’re not sure how to invest for retirement, you almost can’t afford not to ask an advisor for guidance.

Choosing the right financial advisor

If you think it could pay to work with a financial advisor, you’ll need to find the right person for the job. To that end, here are some questions worth asking:

• What approach do you take to financial management?
• What experience do you have?
• What fees do you charge?
• What’s your investing philosophy?
• How do you communicate with your clients, and how often should we expect to meet?
• Are you a fiduciary who will put my best interests first at all times while we’re working together?

There’s not much to lose

Saving for retirement can be daunting. Working with a financial advisor could give you confidence that you’re on the right path toward meeting your goals.

And remember, when you decide to work with a financial advisor, you’re not signing a contract in blood. If you don’t feel that their guidance is valuable, you can always end your relationship and either find a new advisor or go it alone. But it’s worth giving an advisor a try to see what they can do for you.