Retirement Savings: Transitioning from Growth to Income and the Need for Professional Advice
Financial Advisor Tim Hayes
Securities Licensed in MA, RI, NH, NY, NJ, CT, ME, & FL
I am an Investment Adviser Representative at Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser (RIA) based in Fairfield, IA. I am also registered with Cambridge Investment Research, Inc., an independent broker-dealer with over 3,000 registered representatives nationwide.
Most clients pay fee-only or an hourly rate. The size and complexity of the client’s wealth management and financial and retirement planning determine that fee.
Some clients pay a commission, mainly those with smaller accounts, i.e., Roth IRAs, some public-school teachers with 403b retirement accounts, or parents or grandparents who set up a 529 college savings plan.
The first introductory and fact-finding appointment can be in-person or by phone. The next meeting where I provide my recommendations should be in-person. (For the time being, telephone, Zoom, and email are replacing some in-person meetings.)
Subsequent meetings during which we monitor your progress and investments can be done in-person or by phone, email, Zoom, or Skype – or, more likely, a combination of these meeting types.
Are you approaching retirement and feeling unsure about your current retirement savings? It's time to transition from growth to income, but where to start? Contact Tim for a comprehensive overview and guidance on maximizing your retirement security.
Overview of Retirement Savings
You have retirement accounts in a few different places, and so does your spouse. Now that you are retired or thinking of retiring, you are closer to using the money. But you haven’t changed the allocation or risk level of any of those accounts. Moreover, you haven’t met with a financial advisor to discuss your retirement savings goals or accounts.
Need for Transitioning from Growth to Income
Along with great careers, you’ve built up substantial 401k balances. It took a while, but you got the hang of investing in equities — never comfortable with the ups and downs but always focusing on long-term growth.
But now you need income, not growth. Over the years, you owned some bonds with mixed success. But unlike your foray into equity investing, you cannot afford on-the-job training this time. You need the income now. Plus, you have less time to recover from any mistakes.
Challenges of Planning for Retirement
- Understanding interest rates, bonds, annuities, and dividend stock investing, along with other transition products, can be challenging and confusing.
- As with most things in life, the first step is often difficult, but securing sound financial advice should not be left until it’s too late.
- Finding a licensed and knowledgeable resource will help you get the best financial advice.
Tim is a Retirement Advisor
- with a keen understanding of interest rates and the bond market.
- with the knowledge that is imperative when one talks about retirement income.
- with access to the products necessary to help you transition from growth to income.
- who will research your retirement plan and let you know if leaving it with your 401k or 403b is a good option or if you should roll it over.
- who will work to keep your costs low – because in a low-yield world, the less you pay to someone else, the more you keep for yourself.
Retirement Planning Benefits
- Measure how well your investments match up with your risk tolerance and goals and income needs.
- Design a strategy for minimizing your tax burden.
- Recommend investments based on an explicit balance of growth vs. security.
- Figure out whether you should keep your 401k or 403b with your previous employer or roll it into an IRA, where Tim will build you a new portfolio.
- Build that portfolio using your risk tolerance to create enough retirement income, but so that you will not outlive your money.
- Look over any pension options you may be eligible for and review any Social Security and Medicare questions you may have.
- Examine any group life policies you may want to convert to an individual policy.
Please be sure to speak to your advisor to consider the differences between your company retirement account and investment in an IRA. These factors include, but are not limited to, changes to the availability of funds, withdrawals, fund expenses, fees, and IRA-required minimum distributions.
Do I Need to Roll Over My Retirement Plan for You to Provide Advice?
No. You don’t need to roll over your retirement account to get advice. I offer flexible payment options for clients. For example, I can have you pay a quarterly fee if it costs you more to roll it over.
One of the reasons the Department of Labor created the Fiduciary Rule is their concern that financial professionals and advisors are recommending clients roll their 401k and 403b when it would cost them less to keep their money in their previous employer’s plan.
My advice is ongoing as we meet and adjust your retirement accounts, getting you the income and security you need.
These are the opinions of Financial Advisor Tim Hayes and not necessarily those of Cambridge Investment Research. They are for informational purposes only and should not be construed or acted upon as individualized investment advice.
Are You Ready to Retire?
I mean, ready – financially ready? Use this worksheet to help determine how your current retirement savings efforts compare with your retirement spending needs
