I’m a flight attendant, I’m 61 and I want to retire at 70. I’m going to get a $900 pension a month and I’ll get Social Security, but I only have $150,000 in my 401(k). Should I get professional help?

This hostess is looking for financial help from a counselor, but how should she choose the right person?

Getty Images

A question: I think I need a financial advisor. I am 61 years old and plan to retire at 70. I am a flight attendant and will have a pension of just over $900 a month. I have a 401(k) with a balance of just over $150,000, and will receive Social Security when I retire. I’ve never had a financial planner and hope it’s never too late to start with one. My goal is to increase my 401(k) and use common sense in spending. I am single and have no children. Any advice or recommendations on who to contact or how to proceed would be appreciated. (Looking for a new financial advisor, too? This tool can help you match you with a counselor who may meet your needs.)

Answer: We commend you with the hope of increasing your bottom line, and it’s never too late to find a financial planner to help you, should you decide to go down this path. “You’re in what I call the retirement rush, where people who may not have been paying enough attention to savings and investments start running their savings bank,” says Jim Kenny, certified financial planner at Financial Pathways.

On the surface, your needs seem pretty simple and straightforward. If you choose a planner, “I recommend finding a fee-only financial planner, which means that they only work for you and don’t sell you insurance or investment products,” says Kenny. And as the pros say, it also looks like you’ll benefit from an hourly or project-based advisor, who will charge you a flat fee or an hourly fee to give you financial advice, rather than managing your investments for you. (Looking for a new financial advisor, too? This tool can help you match you with a counselor who may meet your needs.)

Some advisors just want to manage money. They won’t want to work with you if most of your savings in a 401(k) goes to your employer. But you can find advisors that don’t require you to invest through the National Association of Personal Financial Advisors (NAPFA) or the Garrett Planning Network — just be sure to make it clear that you’re looking at retirement planning, not investment management,” says Kenny. Fees can vary widely. , but know that they are negotiable – just stress that your life is not complicated and that you only need simple projections and guidelines. over here What you might pay for financial advice.

Do you have a problem with your financial advisor or want a new one? Email picks@marketwatch.com.

The advisor can take a complete look at your income and spending, your tolerance for risk, your asset allocation and long-term goals – and then create a plan for you that will help you achieve your goals.

There are also many issues to address, including when to start Social Security, where you can maximize benefits when you wait until age 70.” You should consider having a taxable investment or savings account in addition to your 401(k) account, which will allow You get cash for reaching age 70 when your pension begins and the ability to delay taking required minimum distributions from your 401(k) until age 72,” says certified financial planner Sheryl Morehauser. In fact, Social Security delays generally provide an 8% increase each year from 62 to 70, says certified financial planner Brian Fry of Safe Landing Financial.

You should also consider the investments that are best suited to your risk tolerance profile to ensure that you survive the volatility of the market as we see it now. “The financial planner can provide strategic advice on turning over a Roth on an annual basis, which exposes taxable income to lower brackets now rather than higher brackets in the future, and can manage exposure to higher income classes when withdrawing from an IRA, while minimizing risk Certified financial planner Jeff Stewart of Lucid Wealth Planning says:

Additionally, the financial planner can assess the benefits, drawbacks, costs, and community of long-term care options; health care insurance assessment; provide ongoing education and support; And implement a disciplined, unemotional, and repeatable rebalancing strategy, which reduces the risk of behavioral errors, Stewart says. (Looking for a new financial advisor, too? This tool can help you match you with a counselor who may meet your needs.)

You want to make sure your money lasts your life, and you’ll need to work with an advisor to “run multiple what-if scenarios when making big decisions,” says certified financial planner DeeDee Baze of Alphemita Financial Services.

And of course you can do it yourself. Consider books like I Will Teach You to Get Rich by Ramit Sethi; The Bogleheads Guide to Investing by Mel Lindauer, Michael LeBeouf, and Taylor Larimor; The Rich Dad Poor Dad by Robert Kiyosaki. Additionally, there are several free online courses available including Finance for Everyone, How to Save Money: Making Smart Financial Decisions (archived course at UC Berkeley) and Purdue University Planning for a Safe Retirement.

Do you have a problem with your financial advisor or want a new one? Email picks@marketwatch.com.

Edit questions for brevity and clarity.

The tips, recommendations, or ratings in this article are those of MarketWatch Picks, and have not been reviewed or approved by our trading partners.

Leave a Comment