Managing finances in retirement can be challenging, but working with a financial advisor can help.
- Retirees need to navigate required minimum distributions, Social Security benefits, Medicare, taxes on retirement income, and planning for their money after they die.
- Financial advisors can help retirees strategize their withdrawals so their savings last for as long as they need them to.
A good financial advisor for retirees should be readily available, have experience handling specific needs of retirees, and offer relevant services.
FINANCIAL ADVISORS—Several financial advisor companies are well-suited for retirees, offering services such as retirement income management, estate planning, and tax optimization.
Top Financial Advisor Companies for Retirees
Retirable: A dedicated advisor for retirement income management
Retirable was created specifically to help current and soon-to-be retirees manage their retirement income. The company offers a custom spending plan and a monthly ‘paycheck’ with a debit card. This can be particularly helpful for retirees who struggle with determining how much they can safely withdraw from their retirement savings each month without jeopardizing their financial future. Retirable’s dedicated advisors work with clients to create a personalized spending plan that guides them throughout retirement. For a fee, retirees can receive a monthly ‘paycheck’ and access to a debit card that allows for easy fund access. In-person meetings are not available, but advisors are accessible via call, text, or email for questions or video calls. The company offers an advice-only subscription for $500, but for full advantage of the spending plan services and portfolio management, clients must roll their retirement savings into an IRA with Retirable and pay a 1% AUM fee, up to an annual $10,000 cap.
Benefits of Working with Retirable
Working with Retirable can provide retirees with peace of mind knowing that their retirement income is being managed effectively. The company’s dedicated advisors can help retirees navigate complex financial decisions and create a sustainable income stream throughout retirement. According to Chuck Henrich, president and owner of Southwest Michigan Financial, LLC, ‘The No. 1 priority of a financial advisor for retirees is to generate lifetime income out of someone’s nest egg, so they’re always going to have income along with their Social Security or pension.’ Retirable’s services align with this priority, providing retirees with a reliable source of income.
Retirable’s Fees
Retirable’s fees are structured to accommodate different levels of service. The advice-only subscription is $500 annually, providing access to a dedicated advisor for retirement income planning. For clients who require more comprehensive services, including portfolio management, Retirable charges a 1% AUM fee, capped at $10,000 per year. This fee structure can be beneficial for retirees who need ongoing management of their retirement savings.
Other Top Contenders
Other financial advisor companies that are well-suited for retirees include Facet, Creative Planning, Mercer Advisors, and Aspiriant. Each of these companies offers a range of services that can help retirees manage their finances effectively.
Facet: A Flat-Fee Advisory Option
Facet charges a flat fee for comprehensive financial planning
Facet offers a flat-fee advisory, which varies depending on the membership level. The fees range from $2,600 a year for its Core tier to $8,700 for its Complete tier. This can be a good option for those with higher balances, as the flat fee structure means that clients won’t pay more as their wealth grows. However, for those with lower net worth, a fee-only advisor who charges an AUM fee might be more cost-effective. Facet provides comprehensive planning services, including estate planning, tax optimization, and investment management. Clients can choose to have Facet manage their investments or advise on outside accounts that they manage themselves.
Facet’s Services
Facet’s services include:
- Comprehensive financial planning
- Estate planning
- Tax preparation services (for Plus and Complete tiers)
- Estate document creation (for Complete tier)
Facet’s flat-fee structure can provide clients with a clear understanding of their costs and help them budget for financial planning services.
Facet’s Benefits
Working with Facet can provide retirees with access to a range of financial planning services. The firm’s flat-fee structure can be attractive to those with higher balances, as it provides a predictable cost for financial planning services. Additionally, Facet’s comprehensive planning services can help retirees address various aspects of their financial lives, from investment management to estate planning.
Facet Membership Fees
Source: Facet
Creative Planning: A full suite of financial planning services
Creative Planning offers tiered AUM fees
Creative Planning charges a tiered AUM fee that starts at 1.20% for the first $500,000 managed and then gradually goes down for higher asset levels. For example, the fee drops to 0.9% for assets between $500,000 and $1 million, and 0.6% for assets over $1 million. To receive comprehensive financial planning services, clients need at least $500,000 in assets managed by the firm. Creative Planning’s in-house professionals can guide retirees through complex topics like estate planning and generational wealth transfer. The firm also advises on legacy planning for high-net-worth clients.
Benefits of Working with Creative Planning
Working with Creative Planning can provide retirees with access to a full suite of financial planning services. The firm’s tiered AUM fee structure can be cost-effective for clients with higher asset levels. According to Chuck Henrich, ‘A comprehensive plan should also include components that address the unexpected.’ Creative Planning’s services align with this priority, providing retirees with a comprehensive plan that addresses their financial needs.
Creative Planning’s Services
Creative Planning offers a range of services, including:
- Comprehensive financial planning
- Estate planning
- Generational wealth transfer
- Legacy planning
These services can help retirees manage their finances effectively and achieve their long-term goals.
Creative Planning Fees
Source: Creative Planning
Mercer Advisors: A Wealth Management Firm
Mercer Advisors aims to meet all clients’ financial needs under one roof
Mercer Advisors offers a range of financial planning services, including investment management, estate planning, and tax preparation. The firm matches clients with dedicated advisors who can coordinate with specialists in various areas as needed. This can be particularly helpful for wealthy retirees who have complex financial needs. Mercer Advisors charges a tiered AUM fee that varies depending on the service level and asset level. The firm also has minimum fees for different service levels, ranging from $1,200 for Guided Investing to $150,000 for Regis.
Benefits of Working with Mercer Advisors
Working with Mercer Advisors can provide retirees with access to a comprehensive range of financial planning services. The firm’s dedicated advisors can help retirees navigate complex financial decisions and create a sustainable income stream throughout retirement.
Mercer Advisors’ Services
Mercer Advisors offers a range of services, including:
- Investment management
- Estate planning
- Tax preparation
- Insurance planning
Aspiriant: A Cost-Effective Option for Large Accounts
Aspiriant could be a cost-effective option for retirees with larger accounts
Aspiriant charges a relatively low AUM fee ranging from 0.2% to 0.85%, with a $14,000 minimum annual fee. This can be a good option for retirees with larger accounts, as the firm’s fees are lower compared to other firms. However, Aspiriant also charges a separate retainer fee for its wealth planning services, which typically ranges from $5,000 to $50,000. The firm has a minimum asset requirement of $1.5 million or more.
Benefits of Working with Aspiriant
Working with Aspiriant can provide retirees with access to cost-effective financial planning services. The firm’s low AUM fee structure can be attractive to retirees with larger accounts.
Aspiriant’s Services
Aspiriant offers a range of services, including:
- Comprehensive financial planning
- Wealth planning
- Investment management
Frequently Asked Questions
Q: What services do financial advisors offer for retirees?
Financial advisors offer services such as retirement income management, estate planning, tax optimization, and investment management to help retirees manage their finances effectively.
Q: How do I choose a financial advisor for retirement?
When choosing a financial advisor for retirement, consider factors such as their experience working with retirees, fee structure, credentials, and services offered.
Q: What is a fiduciary financial advisor?
A fiduciary financial advisor is required to put the client’s best interests ahead of their own and provide advice that is in the client’s best interests.
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