What do you fear about retirement?

Aug 3, 2010

You Do NOT Need a Financial Advisor to Retire Comfortably


This is a comment that I placed on US News in regards to their story Understanding the Psychology of Retirement Planning:


    I have worked less than half of my adult life and I didn't start saving for my retirement until I was in my forties. Even so, I will be okay in retirement with an adequate retirement income.
    I have never profited from any house appreciation because I rented for over 40 years. Moreover, I have never profited from stock investments because the majority of my savings are in safe investments. The key is to save 40 to 50 percent of your income once you start making a decent income so that you can enjoy being retired and experience 1001 Ways to Enjoy Your Retirement.

    I disagree with the author that you need a financial advisor. I have never used a financial advisor and I don't ever intend to use one.

    In fact, I would recommend to people that they stay away from financial advisors, regardless of whether they are fee-only or work on a commission basis. I don't place any credibility on whether they are accredited with any so-called financial association. These associations tend to be self-serving, trying to exclude others from the particular area of work.

    With so many baby boomers not having saved enough for retirement, what percentage of the baby boomers working as financial planners haven't saved enough for retirement themselves.

    Did these financial advisors see the housing bust coming and tell their clients to get out of housing? I bet over 95 percent of the financial advisors took a beating on their houses and investments because they were also the same ones advocating that a house is a great investment and that stocks were a great investment. If these people were so wrong, why would you place any trust in them? If they themselves haven't saved as much as they should have, they have no credibility with me and they should have absolutely no credibility with anyone else.

    If I ever considered hiring a financial planner, I would ask him or her to provide proof in the way of their own investments and assets over the last 10 to 20 years to convince me that they followed their own advice and that this advice paid off big-time for them.

    Incidentally, Larry Winget in his book You're Broke Because You Want to Be advocates similar advice in regards to hiring a financial advisor.

    In short, once you have a sizeable amount saved, consider hiring a financial person to help you invest your money but only if the person can prove that he or she has at least 10 to 20 times as much money as you have. If the financial advisor can’t prove to you with certified accounting documentation that he or she has saved a big amount of money using their own techniques, don’t hire him or her. Why would you want to pay someone to manage your money if he or she is broke or close to it? Trust me, you are liable to wind up broke yourself.

    Ernie Zelinski
    Author of How to Retire Happy, Wild, and Free
    (Over 125,000 copies sold and published in 9 languages)
    and the forthcoming How NOT to Retire Broke: Prosperity Principles to Help Your Create $500,000 or Much More for Your Retirement

Here are some retirement quotes and retirement sayings to help you with your retirement planning so that you retire rich and die broke:

    If you have debt and you are going into retirement,
    I don't think you are ready for retirement,"
    — Gary Gilgen,
    Director of the financial planning department at Rehmann Financial in Troy, Mich

    The biggest trouble maker you will ever meet watches you shave or
    put makeup on your face in the mirror every morning.
    — Unknown Wise Person

    Bill Hagen, work is now past you
    Allow me these words to say
    You are now free as a bird,
    Today is your retirement day.
    — Dave Erhard

    Early to Retire
    Late to Rise
    Leaves a man happy,
    less wealthy, and
    wife pondering,
    was it wise?
    Retirement T-Shirt for Sale on Zazzle

    The Ideal Retirement Plan: "Marry an old rich broad and wait for her to die."
    — Ivan Wilson (commenting on an online article about retirment.)

    I used to have dreams that I died at my desk.
    Now that I've retired, I don't have those dreams anymore.
    — Haselback (commenting on an online article about retirment.)

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