I am 60 years old with ‘seven numbers’ saved. Should I find a financial advisor?

Question: I am 60 years old, single and have no children. I know seven figures with retirement savings, made up of three 401(k), two mutual funds, and a $350,000 pension. My only debt is HELOC $60,000. I have no mortgage, credit card debt or car loans. I am not interested in leaving a legacy after death. I want to retire at 62 and get Social Security. My question is, do I need to keep a financial advisor for a 1% fee or can I navigate my finances in retirement with just an accountant? (You can use this tool from SmartAsset in conjunction with a financial advisor that can meet your needs.)

Answer: First, understand the difference in what an accountant can do for you and what a financial advisor can. “An accountant can help with taxes, but is unlikely to be able to deal with anything else,” says Julia Kramer, certified public accountant and financial behavior expert at Signature Financial Planning. Meanwhile, a financial planner will deal with issues like how to handle your investments as you move towards retirement, how much you can withdraw each year in retirement, how to Smartly schedule social security time and pay for potential long-term care needs. You can read our guide to hiring a certified financial planner here.

Do you have questions about dealing with your financial advisor or hiring someone new?
Email [email protected].

You can handle this on your own, depending on how comfortable you are with handling these financial issues, as well as how much time and energy you can devote to doing so. “It is important to realize the extent of your decision [facing], if you choose not to hire a financial advisor, so you can make clear decisions about where you want to spend your time and energy in retirement,” said Michael E. Kitces, financial planning team lead principal at Kitces.com said. (You can use this tool from SmartAsset in conjunction with an advisor who can meet your needs.)

You should also consider whether you feel an advisor is worth the money. Ask yourself: “Is it worth spending 1% of the traditional consulting fee per year… and getting help with the financial and other retirement issues that come with retirement,” says Kitces.

Consider, says Kramer, whether you’re interested in keeping up with the economy, markets, and investments. “In my case, from 20 to 40 years old, I enjoyed handling my investments. In my 40s, I found that I wasn’t enjoying myself very much and wanted to spend my time on other personal and professional goals, so outsourcing my finances was a good option,” said Kramer, now is hiring a financial advisor.

Another thing Kramer recommends thinking about is whether you can withstand the ups and downs of the market without making emotional changes to your portfolio. “If so and you say yes to enjoy keeping up with the market, you may not need a financial advisor. Otherwise, having a mentor is a great option to help navigate the inevitable ups and downs,” Kramer says.

Also know that you don’t need to hire advisors constantly if you want to just dip your feet in to give it a try. “This can be an hourly plan if you don’t want to commit to setting up,” says Karla McAvoy, certified financial planner and president of the National Association of Personal Financial Advisors (NAPFA). continuity plan from the start.