A Fee-Only Financial Planner Can Help an Educator Nearing Retirement!

Updated: Dec 22, 2019

(Hello, friend! Did you know there's an audio version of this post? Well, now you do! Go ahead and check it out!)

What can a fee-only financial advisor do for you?

In a previous blog, I wrote about how a fee-only financial planner can work with someone who is a new teacher or already in mid-career.

We saw that a true fiduciary can help you navigate setting up targets, choosing benefits, investigating housing options, and making sure your finances are on target for a comfortable retirement.

Now, keeping in mind that a fiduciary is a professional planner who is required to put your interests ahead of their own.

In today’s blog, I’d like to address issues that pertain to those educators who are approaching retirement.

Let’s see what a fee-only financial planner can do for you!


What are your options?

The answer to this question depends on how much time you have to work on the answer.

The sooner you begin working with a fee-only financial planner, the better it is for your financial future.

It takes time to clean up mistakes and for you to save your money effectively.

When you cut that planning time short, there are far fewer options. So start now, even if that is two to five years out.

If you've never worked with a fee-only financial planner, the last thing we want is to let fear or embarrassment hold you back.

The sooner you find out your true situation the better!

Important Matters

What are the major points that we review?

One of the important matters would be the pension projections. We would take you through an in-depth review of your pension for each year.

A good fee-only financial planner can show you where your bonuses and breakpoints will be. We look at how working (or not working) another year (or more) will affect your pension.

How much would working another year increase your pension? How much would retiring early make to your financial stability?

That leads us to examine your social security prospects. Did you switch careers at some point? Were there years that you paid into social security and others that you didn’t?

How will your pension and social security be paid to you?

It makes a difference. Our goal is to minimize taxes by carefully working on your retirement structure. This takes looking at your retirement income over a period of years.

What does your plan for retirement health care look like?

A fee-only financial planner can help you see how health care fits into your overall plan.

What will you do with your 403 (b) plan?

A fee-only financial planner can look at the bigger picture and advise you regarding leaving it as a 403 (b) or rolling it into an IRA.

Is your estate plan in place? What will happen to your money when you die?

This is another dreaded topic where people tend to procrastinate. They’ll think because they have a will and trust, their estate plan is in place.

However, the will and trust don’t apply to the following accounts:

  • Life Insurance Policies

  • Annuities

  • Pensions

  • 403 (b)

  • Roth

  • 457

  • IRA

The beneficiary must be named on those accounts with the specific providers.

There is a caveat. That’s when you name your trust as the beneficiary, but that’s a topic for another day!

Retirement Fears

What are your plans for retirement?

There are many people who want to retire but fear their purpose will be lost. They wonder if they’ll no longer be needed! They worry about using their money for their dream vacation.

I’d like to address the psychological aspect of preparing for retirement so that you can look forward to your new adventure.

How do you cross the barrier that prevents you from embracing retirement?

A fee-only financial planner can help you relax into your retirement by showing you by example. She can show you how your choices can affect your retirement life using probabilities. We can walk you through the financing of your dream vacation. You’ll see how it impacts (or doesn’t impact) your finances and your life.

For the truly reluctant, I’ll slowly start having conversations about a special trip or event, nudging just a little bit. I want them to see they have options.

Bumpy Roads

Are you scared to plan for your financial future?

I’ll admit--it can be intimidating. That is especially true when teachers are under the impression that taking care of your 403 (b) equates to financial planning. In this case, your insurance agent may be compensated for the work they're actually unfit to do!

The fee-based planner or insurance agent is selling indexed annuities to teachers, they are able to funnel the money through avenues within the product where you can’t see the true cost. If you take time to look at the numbers, you can see the cost is the same, and possibly less!

As a fee-only financial planner, we’re trying to do the right thing. We show you the cost of our services upfront. Our work and fees are transparent.

We’ve even signed an oath--with a declared code of ethics!

Do you have more questions about how fee-only financial planners operate? Leave them in the comments below!

OK, quick check-in!

How did you like this blog? If you've found it helpful and enlightening, please share your thoughts in the One Million Apples Facebook Community!

Or... if you find yourself in need of someone who can help you navigate your way through your financial plan, check me out at Wealth of Confidence!

I'd love to help you.

OH! And did you know you can leave me a voicemail? Share your story with me, let me know what you like about the show. Tell me about your budget. And, if you do, you just might be featured in the next show! Here's what to do... Leave a Voicemail here.

And don't worry. We'll edit out any ums, ahs, or slip-ups. Just please be in a quiet place to record. 

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