I am a single woman who has been a diligent saver my entire life. I have always tried to max out retirement contributions, etc. I have been researching fee only financial planners to help with the next phase of my life–retirement! I am concerned about the cost of this over time–it seems like a lot of money that could take away a chunk of change from my savings (which aren’t extravagant). I guess my question is is it worth it? Are there other options? I am not sure I want to be allocating my 403b accounts etc.–not my expertise! Appreciate your thoughts.
Terry Says: Well, the good part is that you have money to work with!
Now, first you must decide whether you need true financial planning advice, or just “investment advice.” The former would be a meeting to discuss everything from estate planning, long term care insurance, tax issues, and to consider when you will be comfortable retiring. Most fee-only planners will give you an overview in a meeting without charge. Then if you have a good rapport you can move forward as needed.
When it comes to investments, Fidelity and Vanguard and T. Rowe Price mutual fund companies offer FREE asset allocation (fund choices) advice if you have at least $50,000 invested for them. They will also do “monte carlo” modeling to help you decide not only how to invest, but how much you can withdraw every month in retirement to make sure you money has the best chance of lasting as long as you do!
So you don’t have to turn all your investments over to anyone or pay huge fees to get responsible advice. You’ve done a good job so far. Now, just don’t fall down on the job of managing your money.