It’s not your father’s retirement any more! Generally speaking, gone are the days you worked for the same company a long period of time, got the gold watch, and collected a pension during your retirement years. Today many things are different, particularly for baby boomers in or nearing their sixties.
The good news is boomers are enjoying at least 5 more years of life expectancy than their parents did at age 65. However they are not significantly delaying their retirement. In addition we are more on our own than ever with the advent of 401 (k) plans versus traditional pension plans described earlier.
A recent AARP study found that 44% of boomers believe their standard of living will decline compared to the previous generation. In addition over half of respondents (56%) are very or somewhat anxious when thinking about their finances in the future. As we wrote recently, 71% do not have a written retirement plan.
With the backdrop of living longer, not wanting to delay retirement age, responsibility being shifted from employers to individuals, and ever increasing complexity, it’s no wonder financial confidence is so low. This also has a direct impact on well being.
You may think hiring a financial planner is something only for the “1 – percent,” but there are a number of reasons to consider working with a Certified Financial Planner™. A CFP® can look at your cash flow, debt, insurance needs and overall asset allocation to develop a strategy to meet your goals. A professional who keeps current with changes in financial products, markets and tax law can help you avoid costly mistakes. They also act as an impartial sounding board when you are dealing with life’s challenges.
A good financial planner will do much more than help you balance your retirement portfolio. Planners take a look at all the way money touches your life, says Sheryl Garrett, founder of The Garrett Planning Network, a nationwide network of independent financial advisors and planners who offer hourly, as-needed financial planning. That includes insurance, estate planning and even shopping for a house. “The job of a financial planner is helping individuals sort through as many ‘what ifs’ as possible,” Garrett says. “You don’t know what you don’t know.”
Working with a CFP® professional can secure your financial well-being, give you peace of mind and help you reach financial planning success.