Financial Planner
Terry,
Is a Financial Planner worth the cost? And what should I expect to pay? I have a 401k ($500K), pension ($2,500 month at 65), and a roth IRA ($40K). My wife has a 403 ($270k), trust ($125k), roth IRA ($35K), and teacher retirement pension (?). We are 56 and 54. 1 kid in college (529) 1 kid in high school (529). I keep hearing the Tim Streans show, Rick Edleman’s show, and have read about Fisher. What kind of planner would be right for us? Thanks – listen on WGN
Terry Says
Well, you’re doing a great job accumulating assets –but what about future liabilities??
Let me ask you a few questions that will show you how a good financial planner might help you with the future:
Do you have a plan to pay for college for both of your children, and/or will you and they be left paying student loans for years:
Do you have a current estate plan– preferably a revocable living trust (so no probate) –and have you re-titled your assets in the name of the trust (your house, any investments outside your retirement plans, etc)?
Have you checked the beneficiaries on your IRA and other retirement accounts to make sure they are current?
Do you have “enough” life insurance? Will your original 20-year term “run-out” just when you still need it?
Have you considered long term care insurance, perhaps a combo policy so that if you don’t need to use it for care, your beneficiary will get a death benefit.
Have you had a projection done of what your assets might be at age of full retirement, and how long they might last (using Monte Carlo modeling of withdrawal rates)?
Have you considered retirement healthcare costs? Hint: Fidelity says a couple can expect to spend nearly $300,000 — not including long term care! That includes Medicare premiums, supplement costs, uncovered expenses (dental, vision) and more!
And have you made a good estimate of how long you’ll live??? Go to www.living20100.com.
OK, so now what’s all that worth to you to get the advice?!! The REAL issue is finding a FIDUCIARY financial planner — who puts your interests first, and only charges fees, not commissions. You can find one using the link in the top right corner of my website to Wealthramp.com, where all advisors are fee only, fiduciary, and carefully vetted by my friend (and co-podcaster on FriendsTalkMoney.org) Pam Krueger.
