22 Questions to Ask Your Retirement Planner

Planning for retirement can feel exhausting, especially if you don't know what to expect. A good retirement planner makes the process easier. But to get the best advice, you need to ask the right questions.

This guide covers the best questions to ask your retirement planner. These questions will help you to get a better understanding of your financial future, manage risks, and plan for a comfortable retirement. Take charge of your retirement by starting the conversation.

Determine Your Retirement Planner’s Expertise

Perhaps the most important step to retirement planning is finding the most suitable planner for you. You should start by learning about their background and approach to retirement. These questions to ask a retirement financial planner will help you evaluate their expertise:

1. Are you a fiduciary, and how do you ensure you give objective advice? A fiduciary is legally required to act in your best interest. That's how they ensure their recommendations focus on your needs, not their profits.
2. What is your experience with retirement planning? Your retirement planner should be upfront and comfortable discussing their past work. Experience can give insight into how well they understand different financial situations.
3. Do you have certified retirement planners at your firm? Look for certifications like CFP (Certified Financial Planner) or CFA (Chartered Financial Analyst). You want to work with professionals who have specialized training and knowledge.
4. What kind of clients do you typically work with? You should know if they have experience working with clients like you. Do they have a similar net worth? Are they businessowners or employees? They should have the relevant experience to overcome your specific challenges.

Get to Know Their Approach to Working with Clients

A retirement planner has your future in their hands. You want to know what working with them in the long term will be like. These are key questions to ask your retirement planner about how they operate:

1. How do you get paid? Ask them directly how they get compensated. Do you pay them a flat fee, or do they get a percentage? You should know if they get paid by commissions from the products they sell.
2. How often will we review and adjust my retirement plan?Retirement plans aren’t static or set in stone. Ask how frequently they meet with you to check progress and make changes.
3. How will we communicate? You should have a retirement planner that can communicate with you the way you want to. Some planners can only be reached via email while others will answer your call whenever you have a question. You should know what they expect from clients and if you’re comfortable with how they choose to communicate.
4. What services do you provide to your clients? Not all retirement planners provide comprehensive services. Some don’t handle taxes, estate planning, or plan for long-term care. Ask them exactly what services they provide.
5. Do you hold my funds and investments for me? This is a common misconception as some believe your retirement planner holds your money for you. This isn’t—and shouldn’t—be the case. A custodian should be the one to hold your assets.
6. What happens to my money if you are unavailable or if something happens to you? Life happens and you should be prepared if something happens to your retirement planner (e.g. they retire, leave the firm, pass away, etc.) They should have a backup plan like having another person take over.

Analyze Your Financial Needs and Goals

Normally, retirement planners are the ones who ask questions about your goals and needs. However, that doesn’t mean you can’t be proactive! These are some questions to ask a financial planner about retirement to get the ball rolling:

1. How do you help clients determine their retirement needs and required income? Find out how they estimate your retirement expenses. This ensures your savings will match your lifestyle.
2. How do you account for unexpected expenses and emergencies? Emergencies can disrupt your finances. Make sure your planner includes a safety net for these situations.

How They Prepare for Multiple Sources of Income

A solid retirement plan usually includes multiple income sources. Your planner should know how to make the most of them. These retirement questions to ask your financial planner will help you to understand their approach:

1. How do you plan for income from Social Security? Social Security is a key part of retirement income. Ask how they determine the best time for you to start collecting your benefits.
2. What is your approach to managing withdrawals from retirement accounts? Learn how they help you take money out without running out of savings. A smart withdrawal plan keeps your finances steady.
3. How do you incorporate pensions, annuities, or other income sources into the plan? If you have multiple sources of income, find out how they fit into the bigger picture. It’s important to make everything work together.

Understand How They Handle Taxes and Retirement

Taxes can take a big chunk out of your retirement income. A good planner knows how to reduce this impact. These are the best questions to ask a retirement planner to understand their tax strategies:

1. How do you reduce taxes on retirement income? Find out how they lower taxes on Social Security, withdrawals, and other income. Tax-saving strategies can make a big difference.
2. What are the benefits of Roth IRAs vs. traditional IRAs for your financial situation? Roth IRAs grow tax-free, but traditional IRAs lower your taxes now. Ask which one works best for you.
3. Are there specific strategies to reduce tax liability during retirement? Learn how they handle capital gains, required withdrawals, and other taxable events.

Healthcare and Estate Planning Considerations

Healthcare and long-term care costs can add up in retirement. When you’re in the later stages of your life, health and your legacy are something you should take seriously. Retirement planning isn’t just about your lifetime. These questions to ask your retirement planner will prepare you for these situations:

1. How do you help clients plan for healthcare costs in retirement? Find out if they include costs like premiums, copays, and medications in their plans. This ensures that their savings can handle these expenses.
2. What is your approach to preparing for long-term care expenses? Ask how they help you plan for nursing homes, in-home care, or assisted living.
3. How can I ensure my estate plan aligns with my retirement goals? Ask how they work with estate attorneys to ensure your plans are complete. This includes wills, trusts, and beneficiary designations.
4. How can I leave a financial legacy for my heirs? Learn how they help you pass on wealth. This could include setting up trusts, reducing estate taxes, and avoiding probate.

Take Control of Your Financial Future

Your retirement shouldn’t give you a headache. Asset Preservation Wealth and Tax is a fiduciary firm with a holistic approach to retirement planning. You get a 360-approach to planning for your financial future.

Work with the right team today!

Stewart Willis is the founder and president of Asset Preservation Wealth & Tax, a financial planning firm in Phoenix, Arizona. Investment advisory services offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser.

A Roth conversion may not be suitable for your situation. The primary goal in converting retirement assets into a Roth IRA is to reduce the future tax liability on the distributions you take in retirement, or on the distributions of your beneficiaries. The information provided is to help you determine whether or not a Roth IRA conversion may be appropriate for your particular circumstances. Please review your retirement savings, tax, and legacy planning strategies with your legal/tax advisor to be sure a Roth IRA conversion fits into your planning strategies.

The commentary on this blog reflects the personal opinions, viewpoints and analyses of the author, Stewart Willis, providing such comments, and should not be regarded as a description of advisory services provided by Foundations Investment Advisors, LLC (“Foundations”), an SEC registered investment adviser or performance returns of any Foundations client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment, legal or tax advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Personal investment advice can only be rendered after the engagement of Foundations for services, execution of required documentation, including receipt of required disclosures. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Foundations manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Any statistical data or information obtained from or prepared by third party sources that Foundations deems reliable but in no way does Foundations guarantee the accuracy or completeness. Investments in securities involve the risk of loss. Any past performance is no guarantee of future results. Advisory services are only offered to clients or prospective clients where Foundations and its advisors are properly licensed or exempted. For more information, please go to https://adviserinfo.sec.gov and search by our firm name or by our CRD # 175083.

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