Struggling Financially in Our 50s: Should We Seek Professional Help?

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Question: My spouse and I require assistance. Both of us are in our fifties, currently selling our house, maintaining full-time jobs, and carrying minimal debts aside from student loans. Generally, we manage to settle all our bills every month. Our aim is to make the most out of our resources. In this scenario, how might a financial advisor assist us? Exactly what aspects should we consider when seeking one? (Seeking a new financial advisor as well?) This complimentary resource provided by our partner SmartAsset could assist you in finding an advisor who may suit your requirements. )

Answer: A financial advisor can assist you with matters such as investments, managing funds, tax strategies, preparing for retirement, insurance choices, and philanthropy. Additionally, they can guide you through assessing the outcomes of various courses of action. "Given that you're selling your house, you might be pondering whether to purchase a smaller, more affordable property, refrain from buying immediately, or perhaps lease instead and utilize the revenue from the sale to invest for future expansion, aiming ultimately to optimize your resources," explains certified financial planner Eric Roberge, founder of Beyond Your Hammock. He emphasizes that advisors can provide valuable assistance with such critical decisions.

Encountering problems with your current financial advisor or looking to enlist a new one? Send an email. picks@GudangMovies21 .

Every decision involves compromises, and top advisors assist clients in exploring potential outcomes by examining if-then situations. They clarify how achieving a specific result in one aspect of their finances might affect advancement in another area. However, naturally, you may opt for a do-it-yourself strategy instead of hiring an advisor—if you believe you possess sufficient knowledge about these matters.

What criteria should you use when selecting an advisor?

If you opt for the advisor path, experts recommend seeking out a fee-only certified financial planner. Professionals who hold a Certified Financial Planner (CFP) credential have undergone extensive coursework, gained practical experience, and are obligated to act under fiduciary duty, which means they must prioritize their clients' best interests when making decisions. (Also searching for a new financial advisor?) This complimentary resource provided by our partner SmartAsset could assist you in finding an advisor who may suit your requirements. )

You might consider finding an individual skilled in tackling the challenges you're facing. Determine this by asking directly or examining their site where they outline the specific services offered. Alongside ensuring these align with your needs, inquire whether they've assisted clients with fiscal circumstances akin to yours. Request referrals as well.

For instance, you might benefit from having a financial advisor who specializes in managing student loans. "Given your age and certain loan forgiveness initiatives, it could be feasible for your student debt to become forgiven," explains certified financial planner Scott Vance at Trisuli Financial Advising. Additionally, assistance with investment management will probably be necessary—particularly as you near retirement and seek advice on extracting maximum value efficiently from your accumulated resources to support your lifestyle needs," adds Roberge.

When transitioning to part-time work or consulting during the approach to retirement, it’s wise to think about long-term care planning and possibly incorporating Roth IRA conversions into your retirement strategy, experts suggest. Certified Financial Planner Danna Jacobs from Legacy Care Wealth notes, "It might be beneficial to convert some of your traditional retirement savings to Roth accounts to optimize within specific tax brackets. This is one of several important aspects that an advisor can help navigate as you move forward."

When you start your search for a financial planner, certified financial planner Eric Presogna from One Up Financial suggests talking to several advisors. He emphasizes looking for those who collaborate with you to clarify what "maximizing what we have" entails. This approach indicates their genuine commitment to helping you rather than merely earning an asset-under-management (AUM) fee. Here’s our guide Here are 15 questions to ask any advisor before hiring them.

What could such services potentially cost? Although it's typical for numerous advisors to levy a 1% fee based on the assets they manage, various advisors opt for hourly rates that span between $200 and $500 per hour, or flat-rate consultation charges that range anywhere from $1,000 to $10,000, contingent upon the intricacy of the client’s fiscal circumstances. Keep in mind that these fees can sometimes be negotiated.

Facing problems with your current financial advisor or planning to get a new one? Send an email. picks@GudangMovies21 .

The tale was initially released in 2022. The Advisor questions have been revised for clearer and more concise understanding.

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