Why it’s Crucial to Work With Retirement Investment Advisors
September 12, 2021 at 11:00 PM
A pink sunset with two retirees sitting in an open field under a large tree.

Whether your retirement is a few years or decades away, making the best choices with your portfolio helps ensure your comfort in later life. Like many, you might not understand what those choices are and how they’ll change with time. With support from qualified advisors, you can achieve confidence in your future without needing to get into the weeds.

Today, we’ll take you through the importance of having a portfolio and what it will mean for you as your retirement planning matures. You’ll also learn what part your advisors play in all this. So keep reading to get a clearer picture of the crucial aspects of a well-funded retirement.

Enabling your contributions to grow in value

Especially if you’re still young and you’ll only retire after twenty or more years, a well-structured portfolio enables you to not just save but increase the value of your contributions. At these early planning stages, you have more allowance to make relatively riskier investments that post greater returns than more conservative options.

If you’re closer to retirement, your portfolio is no less important. More conservative assets such as bonds, cash equivalents, blue-chip dividend stocks still grow your contributions. Late in life, the reduced risk is a significant advantage.

Building the financial cushion to retire early

The FIRE (financial independence, retire early) movement is growing in popularity, particularly among millennials. If you’re young and also want to establish a strong enough financial cushion for early retirement, your investment portfolio is the most stable way to get there.

Keeping your retirement planning in line with your goals and circumstances

Retirement investment advisors focus on ensuring your portfolio matches your changing goals and where you are in life. To achieve this, they may spread your investment across as:

  • Employer-sponsored plans (eg. 401(k)s)
  • IRAs
  • Taxable brokerage accounts
  • Robo-advisor accounts
  • Money market accounts, certificates of deposit, and cash in savings

And some may contain assets including stocks, exchange-traded funds, mutual funds, options, and more. Having this variety creates a more resilient portfolio that reflects what’s best for your goals.

As those goals change, your advisor rebalances your portfolio to maintain alignment with your objectives. This continual adjustment may include resetting your asset mix and

Helping you meet your liquidity needs

You’re likely not the only one with a stake in your portfolio’s success. You may have kids who’ll reach college age after your retirement and your mortgage payments might extend past that point.

Your retirement financial advisor ensures your portfolio offers you the flexibility and liquid value to meet these commitments.

Retaining value and purchasing power by maximizing tax advantages

As you work with your retirement investment advisor, you’ll find they put great effort into minimizing your taxes. That’s because returns from even a solid and well-managed portfolio can face significant erosion without effective tax strategies. Those best able to keep your tax obligations low are ones with a coordinated team of financial advisors and CPAs working together to manage your portfolio.

Let a retirement investment advisor help you establish your comfort in your golden years

As you can see, a specialist advisor offers immense value in building and managing a portfolio you can rely on. If you’d like to cut out the often long and tedious process of hunting for a truly capable one, we’d like to refer you to OWLFI. Fellow Help You Retire readers continue to make strides in creating successful and well-funded retirement plans with their help. We think there’s a good chance you might, too.

Visit their website and give them a call to see what they can do for you.

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