Many individuals may call themselves “financial planners” or “retirement advisers”, but there is a lack of consistent definitions and professional requirements for these terms. This can cause confusion for those seeking guidance on their retirement planning. Investing is often mistaken for retirement planning, although there are other critical decisions to be made that go beyond investments.
Before choosing a retirement adviser, it is important to identify the specific areas in which you need assistance, such as determining when to retire, when to claim Social Security, and how to manage your savings for retirement income. Look for advisers with relevant training and credentials in these key areas. There are various professional designations, such as Certified Financial Planner (CFP) and Chartered Retirement Planning Counselor (CRPC), that indicate a foundational knowledge of financial planning and retirement.
It is essential to distinguish between credentials that require extensive study and ongoing education, and those that simply allow an individual to sell insurance or investment products. Be cautious of meaningless credentials or titles that may not hold any real significance. Checking FINRA’s database can provide information on an adviser’s credentials and whether they have any disciplinary actions against them.
When considering a potential adviser, inquire about their experience working with individuals in situations similar to yours. Request references from clients with similar circumstances. Other factors to consider when selecting a retirement adviser include how they are compensated and whether they act as a fiduciary on your behalf. Thorough research is crucial before making this important financial decision.
Avoid relying solely on recommendations from friends or acquaintances when choosing a retirement adviser. Take the time to do your own research and ensure the adviser you select is qualified and reputable. Hiring the right adviser can make a significant impact on your retirement security, so it is important to make an informed decision based on thorough investigation.
