Typically, a professional that calls themselves a retirement financial advisor helps you prepare for retirement and may not be much value to you if you are already retired (yes, there are big difference in managing assets and providing advice for someone still working as opposed to an investor now living off their assets). Their clientele will typically be age 45 to 65 and their focus will be on growth of assets and portfolio management. The services and advice provided by retirement investment advisors comprise:
*Investment design and management using stocks, bonds, mutual funds, exchange-traded funds, real estate investment trusts, certificates of deposits and many other possible choices. Most retirement advisors make money by managing your investments. Typically, they are fee-based advisors and charge 1% of the portfolio value annually for making specific investment choices, monitoring the portfolio and making changes when needed.
*Insurance planning using annuities, disability insurance, life insurance, long term care insurance and health insurance. The other side of financial security is making sure that your risks don't destroy your assets so having the right insurance and protection is critical. Most retirement advisors have training and experience in risk management tools or will refer you to a colleague who is a specialist.
*Tax planning is the focus on minimizing taxes and advice will usually focus on maximizing the use of 401ks or other tax sheltered ways to grow you assets.
*Financial planning is the activity that encompasses all of the above and it typically an analysis of your current a and provides a road map, a financial plan, or activities that will help you get to your financial destination. In preparing your plan, a fair amount of analysis is done and retirement financial advisors will typically make use of various software such as fixed annuity calculators, retirement income calculators, IRA distribution projections and portfolio allocation software.
In other sections of the site, we cover how to select a retirement consultants for those who are already retired.