By 360 Financial, Big Picture Planning and Wealth Management in Minnesota, MN
You need either a financial advisor or a financial planner for retirement planning.
Planning for retirement is one of the most significant financial decisions you will face, and unless you’re a hard-core personal finance nerd, going it alone may be unwise.
A thoughtful approach, guided by a professional financial advisor or planner, can provide clarity, confidence, and actionable strategies to plan your future. Below, we dive into everything you need to know about working with a financial advisor for retirement planning.
We'll explore your concerns and provide insights to help you determine if partnering with a financial advisor, planner, or wealth advisor is the right choice for you.
Table of Contents
Financial Advisors vs Planners vs. Wealth Advisors
If you have $1M or more in investable assets, working with a financial advisor, wealth advisor, or wealth management firm is recommended.
When you have substantial assets, it's important to safeguard what you've worked hard to build. There are plenty of tax and investing pitfalls you can fall into if you're not careful. There's a lot at stake, so working with a financial advisor makes sense.
If you have investable assets of $250,000 or less, then working with a financial planner may be a better choice. They can create a financial plan for you and offer guidance that may help you as you manage your investments independently. You can work with a financial planner for a one-time fee.
If your investable assets are between $250k and $1M, then who to work with depends on the complexity of your financial situation and how comfortable you are with investing. Working with a financial advisor is the best choice if you don’t feel comfortable creating a balanced portfolio and managing your investments.
Finally, if your investable assets exceed $2M, then you should work with a holistic wealth management firm that can help you with tax planning and estate planning as you head toward retirement. The greater your assets, the greater the complexity and the more value you'll get from working with a wealth management firm.
In sum, you should work with a financial advisor or wealth management firm if you have $1M or more in investable assets.
Take the Quiz to Find Out If You Need a Financial Advisor
How to Choose a Financial Advisor for Retirement Planning
Finding the right financial advisor begins with defining your needs.
Do you need help managing investments, planning retirement income, or creating a tax-efficient withdrawal strategy? Look for an advisor with experience in retirement planning, designations such as CFP® (Certified Financial Planner), and a transparent fee structure.
A good fit isn’t just about credentials—it’s about compatibility. Choose an advisor who communicates clearly, listens carefully, and prioritizes your goals.
In addition, make sure your financial advisor will help you manage the tax liability of your retirement accounts and plan your withdrawals to minimize tax.
Finally, there is a wide variety of financial professionals who can help with retirement planning. However, they don't all have the same experience and education. Be sure you work with someone who has experience helping people with situations similar to yours. In addition, we recommend you work with a fiduciary as they are legally obligated to act in your best interest at all times.
When to Start Working with a Financial Advisor
Timing matters when it comes to retirement planning.
Ideally, you should start working with a financial advisor as early as possible. However, even if you’re in your 50s or 60s, it’s not too late to benefit from professional guidance. If your investable assets exceed $1M, then you should certainly be looking for professional guidance.
In addition, if you’re 3-5 years from retirement, you should seek the assistance of a financial advisor or financial planner who can help you with your retirement planning.
A financial advisor can help you assess your current savings, identify any gaps, and develop a strategy that seeks to maximize your retirement income while managing risks.
In short, a financial advisor can help you plan and prepare for retirement.
Their services typically include investment management and financial planning. If you want to have sufficient retirement income to feel confident and maintain your current lifestyle, then working with either a financial advisor or planner is a smart move.
What Is the Benefit of a Financial Advisor for Retirement Planning?
Retirement advisors specialize in creating customized strategies that seek to ensure you are confident in your financial future.
Their role often includes:
Assessing your financial situation and retirement goals.
Designing an investment portfolio suited to your timeline and risk tolerance.
Developing withdrawal strategies that aim to minimize taxes and maximize income.
Providing insights into healthcare costs, long-term care, and estate planning.
With a retirement advisor, you gain access to expertise and tools that can make navigating this critical life stage less daunting.
Questions to Ask a Potential Retirement Advisor
Asking the right questions helps you gauge expertise and compatibility.
Here are essential questions to consider:
What is your experience with retirement planning?
Are you a fiduciary? (They are required to prioritize your best interests.)
What certifications or designations do you hold?
How do you charge for your services (fee-only, commission, or a combination)?
Can you help me develop a strategy for planning retirement income?
How do you approach risk management and tax efficiency?
What other services do you offer?
Will you help me with my estate planning?
Do you have expertise in helping business owners?
These questions help clarify whether the advisor’s approach aligns with your needs.
Common Retirement Planning Pitfalls
Neglecting proper planning can lead to long-term financial consequences.
Common mistakes include:
Underestimating healthcare expenses.
Failing to account for inflation’s impact on purchasing power, i.e., not saving enough.
Drawing down savings too quickly or without a tax-efficient strategy.
Relying solely on Social Security as a primary income source.
Avoiding these pitfalls requires careful preparation and the guidance of an experienced advisor. It's particularly important to have a financial advisor who can help you with tax planning as this is one of the biggest expenses that high-income earners have.
Cost of Working with a Financial Advisor
Understanding how costs work is essential for making an informed choice.
Financial advisors typically charge in one of three ways:
AUM Fees: A percentage of assets under management (commonly 0.65%-1.5%).
Hourly Rates: Charged for specific consultations or projects.
Flat Fees: A fixed annual or monthly rate. (This is not that common.)
While fees may seem high at first, they often pale in comparison to the cost of catastrophic financial errors, which can decimate a portfolio and set back one's retirement plan for years.
In addition, if you have a complex financial situation with multiple 401(k)s or more than one property, working with a wealth management team is a smart choice.
Your wealth management team will help you with tax planning, estate planning, and retirement planning. If you're a business owner, your wealth management team may be able to help you with succession planning or exit planning.
Cost of NOT Working with a Financial Advisor
The absence of professional guidance can be expensive.
Without a solid retirement plan, you risk running out of savings, incurring excessive taxes, or delaying retirement altogether. Missteps in investment strategy or improper estate planning can also create unnecessary stress for you and your loved ones.
An advisor can safeguard your financial future and help you answer critical questions such as:
Do I have enough retirement savings?
When can I afford to retire?
How can I create a comfortable retirement lifestyle?
You Don't Need Millions to Work with an Advisor
Retirement planning isn’t reserved for the ultra-wealthy.
Whether you’re building modest savings or managing a significant portfolio, an advisor can tailor solutions to your specific needs. They can help with creating tax-efficient retirement accounts, managing income streams, and safeguarding against potential pitfalls like market volatility or unforeseen expenses.
This table is a general guide. Who you should work with depends on your exact circumstances.
Investable Assets | Who to Work With | Why Work with Them |
|---|---|---|
0 to $250,000 | Financial Planner | They will help you create a saving and investing plan as you head toward retirement. You can pay a one-time fee to get a financial plan that reflects your current financial situation. |
$250,000 to $1,000,000 | Financial Advisor | They will manage your investment portfolio and seek to ensure you don't overpay your taxes or make any risky financial moves. Make sure you find a fiduciary financial advisor. |
$1,000,000+ | Wealth Management Firm | A wealth management firm will typically have multiple specialists in-house who can help you with tax planning and advanced tax strategies, estate planning, investment management, exit planning, succession planning, and retirement planning. For more complex financial situations, a wealth management firm may be your best choice. |
360's Financial Advisory Services
At 360 Financial, we aim to take care of every single client like they’re our family. Our services include:
Investment management and asset allocation
Retirement planning
Comprehensive and long-range wealth management services
Big picture financial planning services
Education planning and funding (college planning)
Estate planning
Estate tax planning
Generational wealth
Investment management
Investment advice
Philanthropic planning
Charitable giving
Risk management
Specialist referrals
Tax planning
Tax strategies
At 360 Financial, we provide holistic wealth management services that take into account your specific needs and goals using our proprietary LifeWealth Process.
Common Questions
What is the difference between a financial advisor and a retirement planner?
A financial advisor offers a broad range of services, while a retirement planner focuses specifically on helping you prepare for life after work.
What is a Chartered Retirement Planning Counselor?
This certification indicates expertise in planning retirement income, navigating Social Security, and managing long-term retirement strategies.
What is a Certified Financial Planner?
Certified Financial Planners (CFPs) are professionals with rigorous training in financial planning, covering areas such as taxes, investments, and retirement income planning.
What does it cost to have a retirement planner?
Costs vary but generally range from hourly rates of $150–$400 to annual fees based on assets under management.
What are the steps to prepare for retirement?
Key steps include setting goals, estimating expenses, building savings, diversifying investments, and creating a withdrawal strategy.
How can a retirement planning advisor assist me in preparing for retirement?
They analyze your finances, design a custom plan, and provide ongoing support aimed at helping you meet your goals.
When is the best time to start working with a retirement advisor?
The earlier, the better. Starting in your 30s or 40s allows time to maximize growth, but it’s never too late to seek help.
How do I choose the right retirement advisor for my needs?
Focus on credentials, experience, communication style, and whether they act as a fiduciary. Check that their approach aligns with your specific goals.
What is a retirement financial advisor?
The term "retirement financial advisor" is not an official designation. Essentially, it refers to a financial advisor who specializes in helping individuals plan for and navigate retirement.
Final Thoughts
Wisely managing your retirement money is essential to ensuring your retirement plans align with the lifestyle you envision.
Working with a financial advisor can help you enter retirement with confidence. Ideally, you'll know your numbers, when to take your social security benefits, and how to withdraw money in the most tax-efficient manner.
A financial advisor should be your guide today and in the future. They should be your long-term partner as you work toward a fulfilling and financially stable retirement. So, as you seek the right person, look for someone you can trust. Make sure you feel comfortable speaking with them about your most important financial goals and dreams.
Other Articles and Guides
About 360 Financial
360 Financial is an independent wealth management firm with a team of specialized financial advisors and financial planners. As fiduciaries, 360 Financial’s advisors provide services to business owners, entrepreneurs, and professionals. We help investors with sudden wealth, retirement planning, tax planning, estate planning, and business financial planning.
Headquartered in Minnesota, we serve investors across the US with online and in-person wealth management and financial planning services.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk
