4 Reasons Seniors Need a Financial Advisor
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Aging brings a whole host of new challenges and changes, and one of the biggest comes in the form of your finances. Whether you’ve been saving up for a few years, have a retirement account, or are just now thinking about your golden years, the reality is your finances will seriously impact you as a senior.
And if you have no idea where to start, a financial advisor can help you out. Here are four reasons seniors need to consider getting a financial advisor.
1. Financial Advisors Are Trained to Deal with Challenges
If you’re worried about money as a senior, you aren’t alone – and a financial advisor won’t be surprised. Financial advisors are specifically trained to handle any kind of financial situation, from wealth to limited income, and they know that there are special financial hurdles facing seniors.
So, a financial advisor is able to handle whatever you throw their way. Are you struggling to find funds now that you’re retired? Are you worried you didn’t save enough? Do you suddenly have a lot of medical bills and health expenses? A financial advisor will be your best source of advice for handling these new challenges.
As GoMedico explains, certified financial advisors are trained to deal with seniors’ specific challenges: they know how to help you plan to live on a fixed income, budget for short- and long-term healthcare costs, find smart investments, manage retirement accounts, and do estate planning, to name just a few¹. A financial advisor can help you face every one of these challenges, make a plan, and be more financially confident in your golden years.
2. A Financial Advisor Can Build a Plan Based on Your Needs
In addition to getting your challenges appropriately handled, a financial advisor can help you create a solid plan for your financial needs. Financial advisors create custom plans, from investing to saving to adjusting income, that are meant to meet every one of your needs as a senior.
If you’re worried about how you’ll afford to live on a fixed income or how you can afford rising costs as you age, you simply need a financial planner’s advice to face these needs confidently. A financial advisor will listen to you, take a look at your financial state, and note your concerns or needs. From there, they’ll be able to structure a plan that maximizes your money to work for you.
And a financial advisor handles the hard work for you. A financial advisor helps you find the right financial products that will suit you, helping you grow your money if needed, keeping things stable if you’re already in a good place, or even planning ahead for big changes.
3. A Financial Expert Can Prepare You for Future Expenses
One of the most pressing concerns seniors face is their financial future. When you retire, you’re living on a fixed income – one that comes from your own savings. And everyday costs of things like medical bills and groceries continue to rise even though your income doesn’t.
A financial advisor can help you plan ahead for these expenses. They know seniors live on limited funds and that costs can increase significantly as you age. And financial advisors welcome the opportunity to discuss and plan for those big expenses and costs.
As Andy Smith, the Executive VP of Investments at the Mutual Fund Store and a CFP, tells A Place for Mom², the longer you wait to discuss your finances and senior needs, the more difficult – and expensive – it will become. Working with a financial advisor as soon as possible can help you avoid costly mistakes by anticipating your needs ahead of time.
Smith also notes that retirements costs tend to be far higher than most seniors anticipate³. Over time, rising costs and expenses can affect your quality of life, and you could mistakenly underestimate how much money you’ll need. A financial advisor can help you save more, appropriately budget for your future, and put yourself in greater financial security.
4. Financial Advisors Can Prevent Seniors from Being Exploited
There’s another big concern that seniors face: exploitation. As you get older, more and more people will try to use your age to take advantage of you and scam you out of money that you need.
The AARP reports that seniors – or anyone over age 50 – are prime targets for financial scammers because they hold nearly 70 percent of all U.S. bank deposits⁴. And as you age, your health challenges may bring about diminished cognitive capacity, loneliness and social isolation, and vulnerability. All of these factors are appealing to scammers who want to get their hands on your money.
But a financial advisor who’s certified and trustworthy can prevent these scams from happening, keeping you and your money safe and secure. As GoMedico explains, financial advisors are often the first line of defense against financial exploitation⁵.
Financial advisors keep your money safe. They discuss moves and any changes to your finances with you first, and they put together plans to keep you protected on any financial level. With a financial advisor on your side, there won’t be any way for scammers to exploit you or gain access to your money.
Find a Financial Advisor Today
If you’re ready to enlist the help of a financial advisor, there’s just one step to take: you need to do your research. Taking the time to search for different financial advisors will lead you to the very best option for you and your money, and it’s the only way to find a trusted advisor who’s on your side.
Make sure to search online for reputable financial advisors. This will allow you to see if they’re certified and qualified, vet their experience levels, and check out others’ recommendations and reviews. You want to choose a financial advisor who meets your needs and is highly recommended – and you can find what you’re looking for with an online search.