Do I Need A Financial Advisor For Retirement Planning?

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Do I need a financial advisor for retirement planning
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Do I Need a Financial Advisor for Retirement Planning?

Retirement planning is an important step every individual must take to provide financial cover for post-retirement. Many components make up a good retirement plan and you may not be able to cover all which is why you may need a financial advisor. In preparing a retirement plan, you need a budget, and investment knowledge, you have to consider inflation, come up with a debt payment strategy, and many other things to do. This may be overwhelming for your, especially if you are not a financial expert. A financial advisor will put everything in perspective for you, cover all angles and make sure your retirement saving plan is in good health. A bonus advantage is that not only do you get advice on retirement planning, but you also get pieces of financial advice that may help your current financial status

Do You Need A Financial Planner? 10 Questions To Ask Yourself

1. Do You Not Know Where To Start With Your Finances?

Finance can be a tricky subject, especially to a novice mind. There are so many things to consider, different calculations to make, and different permutations, especially when projecting a future financial need. If you are confused about getting a financial advisor for your retirement plan, you can ask yourself this question. Do you know where to start with your finance? This will include your income and expenses. How do you come up with a budget that weans out unnecessary expenses to provide for your retirement plan and still get to pay your debts with the income? This is quite essential, especially if your income is on the low side. It is the job of a financial advisor to make everything work, even with limited resources. So, if you cant answer this question, then you need a financial planner.

2. Are You Uninterested In Your Personal Finances?

You will agree that to be successful in anything you do, there must be a conscious effort to be interested in such things. The same goes for finance. Some people find it difficult to pay much attention to their finances for different reasons. For some, they just want to live life without bothering about the future, for some, their weakness for calculus makes them disinterested in financial planning. If you are one of these, or for some other reason, not interested in your finances, then you need a financial planner. A financial planner will put your books in order and make sure you make provisions for your post-retirement lifestyle. Having one will also help rein in some unnecessary expenses which can be diverted towards some more important financial plans like savings and investments for your future. So, take a look at yourself, if you are in this category, then you need a financial planner.

3. Are You Too Busy To Do It Properly?

If you are the busy type. Always on a trip or some project, you may need a financial planner. Financial planning requires a cool head to gather all details and come up with a plan that suits your financial status. If you are the busy type, you may not have the luxury of sitting down to come up with a financial plan with a cool head. Having a financial plan will leave that out of your worry and it becomes the problem of an expert to figure out a workable retirement plan. All you have to do is provide the financial planner with relevant financial documents that will give him a clear picture of your finances. You will also need to answer a few questions on your investment preference and risk appetite. His job will be to marry all these information to give you the best financial plan. You can continue with your busy life, your future is covered.

4. Do You Have A High Income?

This is a tricky advantage that may end up being a waterloo if not planned properly. Having a high income means that you have extra cash to save and invest in a good retirement plan. However, if you do not have the financial discipline to save the extra cash. You may need a financial plan. There will always be a temptation to spend the extra cash on yourself to enjoy the good things life has to offer. While this in itself is not a bad thing, it should not be at the expense of your future. There are so many things you can do with extra cash from a high income. Pay your debts on time, create a trust fund for your loved ones, and create a retirement plan that will be enough for the kind of lifestyle you dream of post-retirement. Your best bet is to have a financial planner that will help you take advantage of your high income.

5. Might There Be A Big Inheritance Coming Your Way?

If you are a beneficiary of a Will or Trust fund, you may be tempted to squander it since it is a gift. If you know you do not have the financial discipline to make good use of your inheritance, you may need a financial advisor. A financial advisor will present you with various options on how to utilize your inheritance other than squandering it. Even if you do not intend to squander it, you can still get important tax tips from a financial advisor which will allow you to maximize the inheritance.

6. Are You On The Path For Growth In Your Company And Big Raises?

The potential of having an increase in your income can be tempting. You may have a waiting list of financial obligations you plan to divert this additional income into. It will be better to have a plan for this. Are you confused about what to use your big raise or increase in revenue for your company for? A financial planner will help put things in perspective for you. Like they always say, there are a million and one things to use the money for, why not let your financial planner determine how best to use these funds. It can be used to increase the savings in your retirement funds, for new investment portfolios with a higher risk but more return, or to offset inflation of the cost of living in your retirement fund. Having the extra cash is not a big payday for the now, it is an opportunity to protect your future.

7. Does Your Spouse Have Different Financial Goals?

There is nothing wrong with having a different financial goal from that of your spouse. Yes, it is commonly said that it is good for couples to be on the same page when it comes to finances. Certainly, there will be some common goals that you can go ahead to achieve together, but where you have a different financial goal, it might be good to bring in a financial advisor to help you with your personal goals. A financial planner will come up with ideas that will help you plan on how to achieve your financial goal in a way that does not affect the joint goals you may have with your spouse. A financial planner will ensure you stay committed to all the joint goals while working towards yours also. This will also go a long way in preserving the relationship with your spouse if you are able to stay committed to the joint goals.

8. Are You Going Through A Divorce?

Divorce is an ugly business that can put you off-balance if you do not get a grip or have a good support system. It is even more sensitive when it comes to finances because in one way, your support system is gone and for some, they also get to lose part of their savings and investment in the final divorce settlement. If you are in this kind of situation, a financial planner may be needed to help you settle your finances. Early involvement of a financial planner will help you define the divorce settlement. They assist you in making the best decisions, reorganizing and taking control of your financial destiny, and appreciating the worth of money in your particular situation. A financial planner will help you understand the financial implication of every decision pre and post-divorce.

9. Do You Know How To Set Yourself Up For Retirement Stability?

This is an important aspect of financial planning because it has to do with providing for your future. We all have the post-retirement lifestyle of our dreams and we have to save now to be able to achieve that. For a more sustainable retirement plan, you need a financial advisor who is an expert in budget, tax, and inflation calculations that will give your retirement plan the stability it needs to grow and be sufficient for your post-retirement lifestyle. There are different calculations involved that will set you up for good in retirement. You may not see all the angles but a financial advisor will.

10. Do You Do Your Taxes Every Year With No Problems?

Tax is an inevitable technical obligation that every individual must fulfill. Taxes are quite easy for some more than others. If you fall in the category of the others, you will need a financial planner to put your books straight. The question is, do you even know all the taxes you are supposed to pay or the tax credit you are supposed to enjoy. The truth is there are so many tax laws in Canada and only a financial expert who is familiar with relevant taxes can help you fulfill all your tax obligations and maximize tax credits.


A financial advisor helps with retirement planning by helping you plan the lifestyle you want in retirement. This involves finding out how much money you’ll need in retirement, and how much you’ll need to save from now until retirement age. 

The three biggest pitfalls to retirement planning are not knowing what kind of lifestyle you want in retirement, not knowing how much you need to save for retirement, and not having enough money in retirement. 

The best person to talk to about retirement is a certified financial planner, or CFP. They have the knowledge and skills to help you plan and predict what your life will be like once you retire. 

You need a financial advisor if you want to have a more secured financial plan and future. A financial advisor helps you keep track of your financial goals, and finds you the best ways to get there. 

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Written by:

Jim Pan, CFP, MFA-P

Jim is a dedicated, fee and advice only independent Certified Financial Planner with a focus on supporting healthcare business owners during their crucial growth phase. His expertise lies in offering comprehensive solutions to minimize taxes while embracing a holistic approach. With a career spanning back to 2010, Jim has established a strong presence in the financial industry. He proudly holds a range of designations, including Certified Financial Planner (CFP), and Master Financial Advisor - Philanthropy (MFA-P). He is currently pursuing additional designations and qualifications to better serve his clients and community. Beyond his qualifications, Jim is a member and an esteemed participant in the Million Dollar Round Table (MDRT), an exclusive global association comprising the top 1% of financial advisors. Jim's commitment extends to the community, where he spearheads numerous charitable fundraising events and plays an active role in enhancing the well-being of others. Additionally, he has contributed significantly by serving on the board of the Canadian Mental Health Association in Vancouver. Currently, he volunteers with Junior Achievement of British Columbia (JABC) to present personal finance topics to youths.

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