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Here are 4 tools that work best for retirees
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There’s a lot of advice out there on how to prepare and save for retirement; but once you have your nest egg and are ready for the next phase, what then?
You can’t just ignore your finances and put your bills on autopilot. Carefully managing your personal expenses and knowing how to properly manage your finances in retirement are equally important.
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Fortunately, there are many ways to track your bills and investments, monitor your spending, and implement sustainable budgeting strategies.
Whether you are about to retire, retiring early, or already enjoying your retirement, here are some ways to track your financesaccording to financial experts.
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Flat fee consultant
Financial advisors can charge hefty fees that add up, but Mike Dion of F9 Finance suggested a way around this.
“For those seeking another set of eyes,” he said, “I highly recommend a flat-fee advisor to review your finances annually or quarterly.
“Unlike traditional advisors who receive a percentage of your assets, fixed-fee advisors are fiduciaries who are obligated to give you the best advice. Plus, as your money grows, your fees don’t grow.”
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401(k) Manager
Eric Mangold, founder and wealth manager at Argosy Wealth Management, said your 401(k) is a good place to start.
“There are a lot of great planning tools for investors to use,” he said. “If you have a 401(k), a good place to check is to look at the company that administers your 401(k).
“When you log into your 401(k) account, a lot of these providers have retirement calculators, and a lot of those calculators are a pretty basic way to get started. Some will give you a grade or score showing the path you are taking to retirement. I think these calculators are a good start to understanding your retirement preparation.”
Qualified financial professional
While Mangold suggested using retirement calculators, he also stressed the importance of finding a professional for guidance. “Retirement is not a do-it-yourself project,” he emphasized.
“You’ll want to know exactly how much money you’ll need in retirement and what events could pose a threat to derail your retirement — such as a long-term care event, caring for an aging parent, poor market performance, etc.”
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He continued: “This is unique to each person as everyone’s financial situation is different. You’ll want to meet with a qualified financial professional and have a detailed, personalized retirement projection built for you. It will show you the money coming in from your investments, pensions, social security and other sources of income.
“And it will also show the money going out in expenses and – don’t forget this – in taxes! Typically, the calculators I use with clients are a little more advanced and detailed than what is available.”
Investment Tracker
For those who prefer to manage their finances on their own, portfolio tracking websites or apps can be very helpful.
Dion recommended Empower — “a user-friendly system that connects all your assets across different brokerages into one dashboard. It has excellent tools for planning retirement spending and withdrawals, and provides insights into fees you may not be aware of paying. The best part is that Empower is completely free to use for tracking.”
Other sites or apps to consider include Morningstar, Sharesight, and Yahoo Finance.
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This article was originally published in GOBankingRates.com: I’m a Financial Planning Expert: Here Are 4 Tools That Work Best for Retirees