Yahoo Finance Retirement Planning: Did Our Grandparents Have It Better?
Mobile technology and digital innovation have simplified many aspects of modern life, with things like grocery shopping, vacation planning, and even banking and investing now managed directly from a smartphone or desktop -- no travel, phone call or human interaction necessary.
But when it comes to retirement planning, despite technology's advancements in making the markets more accessible and transparent, many Americans feel they're at a disadvantage today compared to previous generations.
In fact, Capital One Investing's Financial Freedom Survey found more than three-quarters (76 percent) of Americans believe saving for retirement is more challenging now than it was for their grandparents' generation. Sixty-five percent say it's grown more complex and confusing, with many attributing struggles to uncertainty about Social Security (62 percent), distrust of the financial industry and markets (58 percent), and fewer pension plans (54 percent).
[See: 20 Awesome Dividend Stocks for Guaranteed Income.]
The good news is there are newer industry players committed to helping everyday investors build a retirement plan by offering accessible "hybrid" investing experiences that leverage digital investing technology while also offering affordable access to a financial advisor.
And while many Americans believe financial advisors are out of reach if they aren't established, high-net worth investors, there are advisor tools and resources available to help investors of all levels create a holistic financial plan, no matter how much you have to work with. Here we'll discuss the benefits of using a financial advisor, and how they can help you prepare for retirement so you can enjoy your golden years, just like Grandma did.
An advisor makes sure you don't have to go it alone. Whereas generations past relied on pensions and Social Security, most 21st century investors don't have these luxuries. Today's investors are fully responsible for ensuring they'll have enough saved to retire comfortably, and they're living longer (requiring them to plan for more years of retirement). That's a pretty scary thought for many of us, but a seasoned financial advisor may help you build a long-term plan to reach your goals and get on the road toward financial freedom.
There's no right age to take advantage of a relationship with a financial advisor. The earlier you begin discussing your long-term goals with an advisor, the better equipped you'll be to tackle any financial roadblocks that may pop up in the future.
If you're concerned you can't afford financial advice, look for an advisor who prioritizes transparency and communication who'll clearly walk you through pricing. Most investors are looking for an advisor who'll charge a consistent, low fee for their unbiased advice (meaning they don't get paid differently for investing your assets in certain products). Also ask about low-cost index exchange-traded funds that can help keep investment expenses low so the majority of your dollars can go toward growing your nest egg.
[See: 10 ETFs That Pay Sky-High Dividends.]
An advisor can help you keep a cool head during turbulent times. From major life events that change our financial needs to market events that create volatility, it can be easy to feel overwhelmed about your investment choices.
Given today's round-the-clock exposure to news and market activity, it's often more difficult to tune out short-term swings and focus on end goals than it was for our grandparents, but a financial advisor can help you navigate through changes and keep you on course. In fact, Capital One Investing's survey found three-quarters of investors want to hear from their advisor during times of market volatility. Don't underestimate the positive impact hearing from an expert you trust can have on helping you understand what's driving markets.
An advisor can help you learn about digital investing options. Remember to take advantage of what our grandparents didn't have. While financial planning may have seemed simpler way back when, today there are a great selection of tools and products aimed at making investing transparent, straightforward and accessible -- but the challenge is finding the right tools that work for you.
Leverage your advisor's professional insights to determine which digital tools can help you get a handle on retirement planning. Set aside time to customize your tools and resources so they reflect your personal risk tolerance and long-term goals.
[See: 10 Long-Term Investing Strategies That Work.]
Investing today may be more complex and come with a different set of challenges than what previous generations faced, but a trusted professional can help you think holistically about your future, offer advice and perspective, and help you leverage cutting-edge tools to establish and follow-through on your plan.
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