Why Have a Financial Planner Handle Retirement Money?

Financial stability is critical to a successful retirement.

Retired gentleman in park image by Scrivener from Fotolia.com

Retirement investments, accounts and holdings are a crucial element in ensuring that you have enough money to live on after you stop working. The financial stability that comes with properly managed and monitored retirement money can help you have enough money to afford the lifestyle you desire. The use of a financial planner can be essential in the years leading up to retirement for those who seek to have a better handle on retirement savings.


The structure of your retirement needs to be devised and maintained ahead of time to achieve the goals you have set. One of the ways a financial planner can assist you in achieving those goals is to help you better understand what is reasonable in terms of retirement expectations. The majority of people believe that high-yield investments and diversification will allow them to grow a retirement nest egg that's suitable for their future needs. The reality is that a financial planner can guide you through how your retirement should be structured based on various factors including macroeconomic trends, traditional yield rates and historical reference through their years of experience.

Consolidation of Accounts

Retirement money tends to be divided among various accounts such as employer-sponsored 401(k) plans, IRAs, stock investments, bonds, traditional savings accounts and even real estate. A financial planner can help you get a better idea of the true worth and value of your holdings by consolidating some accounts and keeping all information in one location that the financial planner can oversee and monitor. For example, having 401(k) accounts from previous employers as well as one with the company you're working for is a scenario in which consolidating all accounts into one can give better control over investments. Good financial planners are skilled in knowing what accounts to bring together for better manageability.

Routine and Regimentation

One way a financial planner can help assist you in reaching your retirement goals is by giving you the guidance and support you need to keep up with consistent investing. The best way for your retirement money to grow to the level you need for a comfortable retirement is through adding funds to retirement accounts on a regular basis. You may find that your life gets busy and planning for retirement may slip your mind or take a back seat at times; a financial planner will help keep your eye on your goals.

Tax and Recordkeeping Easement

The tax implications involved in retirement saving and investing represent one area in which the use of a financial planner can come in handy. At tax time, you will be able to get all the required data and figures from a financial planner for use in preparing your income taxes. You may have taken early withdrawals from some accounts or you may have made maximum contributions to others -- all of which will impact how your final adjusted gross income and tax liability or refund is calculated. Financial planners will be able to give you all information required so you can take all the deductions you're eligible to take and make sure all income and interest that needs to be reported as income is accounted for and properly recorded.