Key Retirement Questions to Ask Your Advisor

August 11, 2023

Key Retirement Questions to Ask Your Advisor

August 11, 2023

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Making your money last for 20+ years in retirement can seem like a tall task. As a wealth advisory firm, two questions we are often asked are: Am I ready to retire? And, once I retire, how can I set myself up for success and ensure I don’t run out of money?

Preparing for retirement is a crucial part of your life journey, and having a trustworthy and knowledgeable advisor can make the process significantly smoother. When choosing your advisor, you want a relationship that serves you and helps equip you financially for the long haul—all the way through your retirement. To ensure that you’re on the right track, here are some of the key retirement questions to ask your advisor.

Understanding Your Financial Goals

The first step towards successful retirement planning involves understanding your financial goals. What kind of retirement lifestyle do you aspire to? Do you plan to travel, pursue hobbies, or perhaps even start a small business? Each of these choices will influence the kind of retirement fund you need to build. To get a clear picture, consider asking your advisor:

1. What kind of retirement income will I need to sustain my desired lifestyle?
To sustain your lifestyle during retirement, your advisor should help you estimate your annual expenses. This will include everything from basic living costs to leisure activities, healthcare, and unexpected emergencies.

2. How can I create a diversified income stream for my retirement?
Your advisor should help you identify various income streams for your retirement, such as Social Security benefits, pension, annuities, retirement accounts like 401(k)s or IRAs, and investment income. The goal is to have a mix of reliable and variable income to cushion against risk. Learn more about diversifying your portfolio here.

Planning Your Retirement Investments

To fund your retirement, you’ll likely need to make strategic investments throughout your working years. However, investing can be complicated, and risks need to be effectively managed. Key questions to ask your advisor in this area are:

1. What type of investments should I consider for a balanced retirement portfolio?
Depending on your risk tolerance, investment timeline, and income needs, your advisor should guide you towards a balanced mix of stocks, bonds, mutual funds, ETFs, and potentially alternative investments.

2. How can I protect my retirement savings from market volatility?
Investment diversification and appropriate asset allocation are key strategies to mitigate market volatility. Your advisor may also recommend safer investments as you near retirement.

3. How should I adjust my investment strategy as I approach retirement?
As you approach retirement, it’s typically advised to move towards more conservative investments to reduce risk. However, your advisor will customize this shift based on your personal financial circumstances and risk tolerance.

Ensuring Adequate Healthcare Coverage

Healthcare can become a major expense as you age, making it an essential part of your retirement planning. Therefore, when talking to your advisor, you should ask:

1. What strategies can I use to prepare for healthcare costs in retirement?
Your advisor should discuss options like Medicare, Medigap, long-term care insurance, health savings accounts (HSAs), and potentially earmarking specific funds in your portfolio for healthcare costs.

2. Should I consider long-term care insurance?
Long-term care insurance can be a significant component of retirement planning. Your advisor should help you assess your risk of requiring long-term care and evaluate the cost and benefits of such insurance. They will also likely be able to help you purchase this insurance should it suit your needs.

Estate Planning and Legacy

Estate planning ensures your wealth is protected as much as possible and transferred according to your wishes after your passing. To understand how this fits into your retirement planning, ask:

1. How can I ensure my estate is passed on as efficiently as possible?
Estate planning involves wills, trusts, beneficiary designations, and tax strategies. Your advisor should guide you through the process to ensure your estate is passed on according to your wishes.

2. How can I use life insurance as a tool for estate planning?
Your advisor can guide you on using life insurance for legacy planning, paying estate taxes, or creating an inheritance. This will depend on your personal and family circumstances.

Understanding Social Security Benefits

As a retiree, you may be entitled to certain government benefits. However, the rules surrounding these can be complex, so ask your advisor:

1. When should I (and/or my spouse/partner) start taking Social Security benefits?
Deciding when to take Social Security is complex and personalized. Your advisor should guide you based on factors like your health, life expectancy, need for income, and the impact on your spouse.

2. How can I maximize my Social Security income?
Your advisor should discuss strategies for maximizing Social Security benefits, such as delaying benefits, coordinating benefits with your spouse, and considering the impact of taxes.

Preparing for Unexpected Events

Life is unpredictable, and unexpected events can derail your retirement plans—so it’s important to be as prepared as possible. Hence, it’s crucial to ask:

3. How can I protect my retirement savings from unforeseen events like disability or job loss?
Insurance products like disability insurance, life insurance, or annuities, and having an emergency fund can help protect your retirement savings. Your advisor can guide you on the best options for your situation.

4. What kind of emergency fund should I have in place for retirement?
A rule of thumb is to have 3–6 months of expenses in an easily accessible liquid account. However, your emergency fund’s size will depend on your personal circumstances, and your advisor should provide a tailored recommendation.

Adapting to Life Changes

Your retirement plan should adapt to major life changes such as marriage, children, or relocation. Ask your advisor:

1. How will life events like marriage, having children, or moving to a different state affect my retirement plan?
Life events can significantly impact your retirement plan. Your advisor should help you adjust your plan based on changes to your income, expenses, taxes, and retirement goals.

2. How often should I review and adjust my retirement plan?
Regular reviews of your retirement plan are crucial. Your advisor should recommend a review frequency that suits your needs and your preferences, but annual or semi-annual reviews are common.

Implementing Tax-Efficient Strategies

Taxes can significantly reduce your retirement savings if not properly planned for. Therefore, you should ask:

1. What strategies can I use to minimize taxes on my retirement income?
There are several strategies to minimize taxes in retirement, such as tax-efficient withdrawal strategies, utilizing tax-advantaged accounts, and possibly relocating to a tax-friendly state.

2. How can I use tax-deferred or tax-free investment accounts for retirement savings?
Your advisor should explain the benefits and potential pitfalls of tax-deferred accounts like a 401(k) and IRA, or tax-free accounts like Roth IRAs and HSAs, and how they can fit into your retirement plan.

Your advisor should provide clear and concise answers to all these questions. They should be able to demonstrate how their advice aligns with your financial goals, risk tolerance, and lifestyle aspirations. Remember, the key to successful retirement planning is not just about accumulating wealth but also about creating a financial safety net that can give you peace of mind during your golden years.

The retirement landscape can be quite complex and daunting to navigate, and retirement planning is a dynamic, ongoing process that should adjust to your evolving financial needs and goals. It requires careful and deliberate thought, informed by thoughtful and insightful advice. Your advisor should be more than just a guide. They should be a partner in shaping your future, helping you navigate and prepare for whatever lies ahead.

At our firm, we pride ourselves on providing personalized advice that aligns with your unique retirement goals. So, when you’re ready to take the next step in planning your retirement, please reach out. We’re here to help you build the retirement you envision.


Standard Disclosure

This blog expresses the author’s views as of the date indicated, are subject to change without notice, and may not be updated. The information contained within is believed to be from reliable sources. However, its accurateness, completeness, and the opinions based thereon by the author are not guaranteed – no responsibility is assumed for omissions or errors.  This blog aims to expose you to ideas and financial vehicles that may help you work towards your financial goals. No promises or guarantees are made that you will accomplish such goals.

Past performance is no guarantee of future results, and any expected returns or hypothetical projections may not reflect actual future performance or outcomes. All investments involve risk and may lose money. Nothing in this document should be construed as investment, tax, financial, accounting, or legal advice. Each prospective investor must evaluate and investigate any investments considered or any investment strategies or recommendations described herein (including the risks and merits thereof), seek professional advice for their particular circumstances, and inform themselves about the tax or other consequences of any investments or services considered.

Investment advisory services are offered through Liberty Wealth Management, LLC (“LWM”), DBA Liberty Group, an SEC-registered investment adviser.  For additional information on LWM or its investment professionals, please visit  or contact us directly at 411 30th Street, 2nd Floor, Oakland, CA  94609, T: 510-658-1880, F: 510-658-1886, Registration with the U.S. Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.