If you are asking this question, you are not alone. A new survey from PWC, a global tax and business services firm, shows that baby boomers want to retire soon, but many have doubts about how to make that happen.
Almost 60 percent of survey respondents say they want to retire in the next five years. But more than half didn’t know how much income it would take to live comfortably in retirement. And more than 40 percent report less than $100,000 in savings. For most families, that’s not nearly enough savings.
What are the first steps to retirement?
So, if you wish you could retire sometime in the next five years, and you want to start working toward that, what do you do?
One suggestion would be to meet with an experienced CERTIFIED FINANCIAL PLANNER™ professional and talk through your current situation. Perhaps a personalized financial plan would help to clarify where you stand and what you need to do to get to where you want to be.
A thorough plan would cover the six key areas of financial wellness:
- Cash flow
- Risk management
- Investment management
- Retirement income planning
- Tax planning
- Estate planning
As you consider a financial plan, remember that you are looking for a clear picture that’s not clouded by any product sales pitch, or any other potential conflict of interest with the advisor. If you work with a CFP® planner who is always the client’s advocate – a fiduciary advisor – and one who works exclusively for clients – a fee-only advisor – you can be very confident you will get advice based on your needs and priorities.
How do I find a financial advisor?
Part of building that plan and executing it successfully is choosing a great partner to help you.
I suggest you visit this link to see CFP® professionals near you.
And remember to ask these two questions at the beginning:
- Is the advisor always the client’s advocate – a fiduciary advisor?
- Is the advisor only paid by clients, not any financial product manufacturer or distribution network? That would be a fee-only advisor.
These two points help assure that you are working with a professional who is committed to your best interest at all times. It seems sort of obvious to me that a professional would work in this way, but it’s not automatic.
A fiduciary, fee-only, CFP® professional can help you create a financial plan that is driven by your goals and priorities and addresses all aspects of your financial life. With a big-picture approach, you will be better prepared to understand your options at every step along the way.
Yes, I am a CFP® professional. I’m always a fiduciary and I only work on a fee basis. And yes, I’m still taking on a few great families to be part of my financial planning practice.
If this article has you thinking about the value a planner could add to your retirement, contact my office at rdunn@dunncreekadvisors.com. I am always happy to meet with people who are working on their retirement plans. Dunncreek Advisors does not provide legal or tax advice, nor is this article intended to do so.