Investors Embrace Comprehensive Retirement Planning
On: 7th June, 2016 // By: admin
Retirement Planning is Becoming More Intentional
The best investment portfolios, no matter their size, are carefully assembled with diversified assets and a comprehensive plan that reflects the plans and desires of the individual. For many retirees, though, retirement planning has been less intentional, resulting in a portfolio cobbled together without the help of an advisor.
Results from a new survey conducted by The American College of Financial Services and Greenwald & Associates reveals that investors are becoming more likely to pursue a well-planned portfolio. Retirement planning is often naturally brushed aside during the busy years when people are building their careers and growing their families, but the survey indicates that for many investors, the focus on their assets is prioritized.
Much of the survey’s focus was the actual behavior of investors surrounding their decisions about rollover plans. The survey found that 62 percent of those with substantial assets in a defined contribution plan decided to move their assets out of that plan upon retiring. Of those, approximately 80 percent completed the rollover with the assistance of a wealth advisor.
Reasons for moving the wealth out of the original plan were somewhat varied, but the majority cited improved performance and the goal of consolidating assets as their main reasons for the change. Among those that preferred to leave their money in the plan, nearly half said that it was simply easier to leave their assets in the current plan. About two-thirds said that they liked the investment options in the plan.
Those conducting the survey noted that many investors seem to be carefully considering the rollover decision, prioritizing their wealth management and working with an advisor. However, for those that chose not to do a rollover, it was common for the investor to have spent less time on retirement planning. They generally were not working with an advisor or creating a comprehensive plan.
Investors that had worked with a wealth advisor to do a rollover were more likely to have a comprehensive financial plan that included investment strategies intended to grow and protect wealth for retirement. Those that worked with an advisor to develop a financial plan reported that part of their plan includes an estimate for the amount of income they can expect to realize each year in retirement, a plan for where their income will come from in retirement and how many years their income will need to cover for their retirement.
Retirees that work with an advisor pointed out a key benefit to this relationship: they said that having an advisor gave them another set of eyes on their investment plans and the advisor could point out anything that’s been missed or identify an opportunity the investor may not have considered.
If you need help navigating the complexities of a diversified investment portfolio, make an appointment with Aura Wealth Advisors. From rollover decisions to estimating annual income in retirement, Aura Wealth Advisors has the expertise to help you make decisions that build and protect your assets.