Ep 111: Dropping the Ball Financially

Today's Hack

If your advisor seems to only be interested in discussing investments and growth, it may be time to take a step back and make sure all of your retirement pieces are being addressed. On today’s show, we will discuss 5 areas advisors can drop the ball and how you can stay vigilant in protecting your retirement plan.

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Show Notes For This Episode

Other Retirement Facts:

Advisors that seem to only be focusing on your investments and growth may be dropping the ball (financially). That may be a harsh way of putting it, but you need to make sure your advisor is discussing all the facets of retirement with you. They should be discussing the big picture and the small pieces. Social Security planning, tax planning, and legacy planning are all facets your advisor should be discussing with you as well. Today, we will be discussing a few ways advisors may drop the ball and what you can do to make sure your financial future is protected.

Not Reviewing Taxes

Taxes are one of the most important parts of your retirement plan. If you aren’t planning for them, they can really mess up your long-term goals. Your advisors should be reviewing your taxes from a retirement standpoint. It can be common for advisors to recommend you see a “tax advisor” if they are not a CPA themselves. But if your current advisor isn’t mentioning tax planning at all that may be a warning sign.

Fees and Costs in Investments 

Sometimes advisors can hyper-focus on investments and neglect to inform their clients of all of the fees and costs. Make sure you are working with a fiduciary. You need to understand the fees associated with certain products and whether you want low fees with minimal management or more fees with more management. These fees do have an effect on your overall plan and can add up when investing.

Income Planning 

Even if you are younger than 50 it’s a good idea to think about your overall income plan. If your advisor isn’t focusing on this it may be time to have a conversation with them. You need to understand where your assets are going and how they play into your future income. If your advisor is only focusing on accumulation and not income planning, they may be dropping the ball.

Investments and Products 

These are tools for your overall plan, you can’t look at one piece of the puzzle. Your advisor should tell you how your money is going to work for you. It’s about the bigger picture as much as it’s about the smaller details. Emphasis on 401(k)s has left a lot of retirees frustrated with their taxes. You want to stay diversified and don’t want an advisor that is “stuck” on certain products or investments.

Legacy Planning 

While not everyone wants a legacy plan, your advisor should still ask you about it. They should be having the “What if…” discussion. Legacy planning is important for many people and can prevent a lot of lost money in taxes. Overall, you want to make sure your advisor is talking about all the pieces, not just investments and growth.

Listen to the entire episode or skip ahead using the timestamps below. 

[0:35 –] Looking forward to Thanksgiving

[1:04]Reviewing tax returns

[5:09 ] Fees and costs in investments

[7:31] Income needs

[9:23 ] Clarifying the job of your money

[11:47 ] Discussing your legacy

A Quotable Moment:

The decisions you make today need to be viewed through the lens of the future.

-Phil Putney

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