401(k) Consulting & Strategies
The goal of any financial advisor when it comes to evaluating your 401k investment should always be to offer insight and/or manage assets in such a way that you will be able to retire safely and securely.
- Do you need a financial advisor for your 401k?
- Does your company give you access to an independent financial advisor?
- How do you know if your plan is working for you?
- How do you know if your employer is meeting those challenges?
While your company may provide for an advisor as part of your company’s benefit plan, you should consider hiring a retirement plan advisor who can assist you in getting the most out of your retirement plan.
Does A Financial Advisor Help With 401k’s?
While most financial advisors are not enlisted to help with a client’s 401k, they are typically able to. Although a bulk of most people’s savings can be found inside a 401k, they often receive little to no advice from financial advisors on how to invest it. In most cases, an advisor has no access to that money and therefore little ability to effectively advise them on how to manage their investments inside employer-sponsored retirement plans. As a result, many people loathe changing their 401k investment strategies themselves which can lead to underperformance and ultimately lead to less money saved for their retirement.
Do I need a Financial Advisor to Manage my 401k?
Without hiring someone such as a financial advisor for professional advice, you may fall prey to the suggestions of your plan’s provider. However, most plan providers are not in a situation to evaluate all of the current and future needs of the individual and can only provide generic information for what the investor can and cannot do inside their plan.
Questions to ask a financial advisor about your 401k Investment?
How does Social Security and RMD’s affect my retirement?
These are two important concerns that need to be factored into your retirement planning. Questions you should be asking are: When should I start taking Social Security? How will I deal with taking Required Minimum Distributions (RMD)s?
How often will you contact me?
You will want to know how often you will meet with your financial advisor to ensure that your retirement is on the right track and your plan is going accordingly. Additionally, you should also be aware of whether they will be available for phone calls and emails outside of your regular appointments.
Whether you want us to contact you quarterly, monthly, or yearly is all up to you. We typically recommend meeting with us on a quarterly basis to ensure that your financial plan and investments are working for you and not against you.
How are you compensated?
Advisors typically get paid in a variety of ways. The two main ways of being a fee-only structure or a fee-based structure. A fee-only structure means that the advisor may either charge a flat fee for services, an hourly fee or simply charge a percentage of the assets that they manage for you. However, while a fee-based advisor may charge similar fees for services, they can also receive compensation from the commissions of financial products sold to clients.
Florida Financial Advisors are compensated on a fee-based basis. However, we offer the flexibility to interact with us on a fee-only basis, charging only a flat fee for the development of a financial plan tailored to meet your current and future needs. Please note that this flat fee varies and depends on the size and the amount of time that we will need to dedicate to such a plan.
Does the company you work for sell investment products/funds?
Sometimes, an advisor selling you their company’s branded products/funds can be the best option for you and your situation. However, an advisor who works for a bank, brokerage firm, or insurance company is typically first and foremost required to sell you their employer’s products/funds whether they are the best choice for you or not.
Florida Financial Advisors is an independent advisory firm that does not manufacture or sell any Florida Financial Advisors branded products or funds.
Roth 401(k) is one of the 401K investment options that put you in control of your retirement plan contributions. Learn more about Roth 401K plan and determine if it is right for you with our FREE Guide to Your Roth 401(k).
Download your Free Roth 401K GuideYou may also book a 401k consulting discussion with one of our advisors
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Helpful Resources:
- Whiter paper:
What is a 401K Plan - Guidebook:
Envisioning your Retirement - Calculator: Retirement Cost Calculator
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