This generation is the first in recent memory to face retirement without the
prospect of a pension from their employer and with substantially diminished Social
Security benefits. Society has changed and economics have changed to the point where
you can’t depend on someone else to provide for your future; you must help yourself
if you want to have financial security in your retirement years.
As you have worked on inner self-improvement, your confidence has likely grown
and you now actively take responsibility for the choices you make each day. This
is a great time, then, to seek advice and information about financial planning for
retirement. But how do you know which consultant, which guide, which strategy is
best for you? The answer is to research, gather information, and use common sense.
Most experts agree that a good place to start is with a financial calculator
to help you determine just how much money you will need for retirement. There are
many such calculators available free for your use on the internet; in fact, nearly
every financial services web site has one. They are easy to use and can be very
helpful as a starting point to get some idea of how much you need to save to have
the retirement income you want.
While an online calculator can get you started, you need to do some much more
detailed planning as well. You may choose a software tool to help you do this on
your own, you may consult a professional financial planner for advice, or you may
do a combination of both. It can be very satisfying to do your own financial planning
and then watch your nest egg grow. However, unless you are a financial planning
professional yourself it is very difficult to stay current on tax laws and other
issues that can have a substantial impact.
Choosing a Financial Planner
You should consider consulting an expert at least periodically to update and
adjust your strategy if necessary.
It is also a good idea to consult with one or more investment managers or financial
planners so you get recommendations and costs. As a rule of thumb, a good mix of
investments is a smart idea. Find out about rates and fees. Get references. Ask
your friends and family members that are doing well what consultants they have worked
with. Ask them to share their experiences.
Do remember that when you work with a consultant they earn their living from
the commissions received when you purchase one of their financial products. Different
products come with different commission rates, so when the consultant makes a recommendation
about which products to purchase ask him or her to disclose their potential commission.
Start Saving Today
Financial planning for retirement can be very intimidating. It can be
one of those things that are perpetually put off “until later” when it will (supposedly)
be more convenient to pursue. This is the biggest mistake you can make. When it
comes to securing your financial future, don’t wait and allow yourself to be intimidated
by the process. You can successfully prepare for the future if you are diligent
and gather the information needed to put together a solid plan.
It has become very simple to 
