So, you have sorted out a workplace pension and will also receive a state pension when you retire. Perhaps you even have a private retirement annuity or savings plan. You are all set for retirement, or are you missing a key piece? A financial advisor can help bridge that gap.

Do you know exactly what your income will be at retirement? Will you be able to maintain the same standard of living as you do now? You might have a company pension and a private savings plan, but will it be enough to live comfortably in retirement? Remember that people are living longer due to better medical and lifestyle innovations. A retirement that could last around 20 years could now last as long as 30 years or even longer. Will you have enough?

What does a financial advisor do?

A financial advisor is an investment professional who takes a personalised approach. They assist in creating a financial plan tailored to your unique circumstances and goals. This plan could include retirement planning, education planning, wealth building and investments, or even education planning. 

They use their knowledge and expertise to construct an individual plan of action to grow your money. This means you can maintain the same quality of life at retirement as you currently experience. They will help create an image of what you envision for your retirement to better understand your retirement needs.

The financial advisor will look at your current retirement savings, for example, and make projections to determine how much more you will need to retire with the desired lifestyle you choose, and provide savings and investment solutions to achieve this. They will also constantly review your financial portfolio and make any adjustments as your financial circumstances change. Lets say, an inheritance or receiving a significant salary increase. These all affect your portfolio. 

Your financial advisor will accompany you on your wealth-building journey. From the start of your career through the financial burdens of middle age into retirement and beyond.

Benefits of having a financial advisor

Having a financial advisor certainly has many benefits over managing your financial portfolio yourself.

Tax-efficiency – A financial advisor provides solutions to make your financial portfolio as tax-efficient as possible, like placing your investments in the right investment vehicle that offers specific tax benefits. This could mean less taxation at retirement, less taxation on inheritance and estate tax, and also receiving specific savings tax-free. 

Comprehensive retirement planning – An advisor takes a holistic approach to planning your retirement. They consider factors like lifestyle, financial needs, and longevity. 

Insurance cover – Will your family survive financially if you are no longer around to support them? Will they have to adjust their lifestyle? Insurance will also provide life coverage so that your loved ones are taken care of if you are no longer around to support them.

Actively manage portfolio – A financial advisor has the knowledge to actively manage your financial portfolio. This means they constantly monitor your portfolio and make adjustments, such as buying and selling stocks, bonds, and funds, to ensure they deliver optimum interest. 

Constantly reviewing your portfolio – They will regularly review the performance of your investment portfolio and make any adjustments to maintain optimum returns. They will also adjust your risk profile to protect and preserve capital as you approach retirement. 

What is comprehensive retirement planning?

Your financial advisor takes a holistic approach to retirement, which includes retirement savings planning, determining time horisons and risk profiles, post-retirement planning and taxation, and estate and inheritance planning. These factors will all determine the savings solutions you choose to build wealth for retirement. 

They will emphasise the importance of compounding interest on a portfolio – meaning the longer the savings term, the higher the interest earned – and, of course, diversification of a portfolio to spread risk. 

Using the services of a financial advisor could definitely benefit your investment portfolio by making it more tax-efficient, actively managing its performance, and, of course, having a solid savings plan of action in place to achieve your desired retirement goals. 

Please note, the above is for educational purposes only and does not constitute advice. You should always contact your advisor for a personal consultation.

* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.