Your retirement questions, answered
Retirement planning comes with a lot of questions, and we are here to help. Our CERTIFIED FINANCIAL PLANNER® professionals address some of the questions we hear most, so you can feel more informed, more confident and more prepared for what is ahead.
About Retirement Investment Advisors
I have never worked with a financial advisor before. What is the process and what does that long term engagement look like?
The process of finding a financial advisor is straightforward. Enjoy an open conversation with one of our CFP® professionals regarding your financial scenario and your goals for the future. We will share our investment philosophy and go over our services along with the costs associated with them.
If you decide to move further, another meeting will be scheduled to discuss your detailed individual plan. After reviewing your plan and deciding to move forward, we will schedule an additional meeting to complete account opening paperwork.
Should you feel that we are not right for you, rest assured there are no fees for these consultations, and we wish you all the best.
What is your investment philosophy?
How are you compensated?
Finding the Right Advisor
How do I find a trustworthy financial advisor?
Retirement Investment Advisors, Inc. appreciates your desire to find a financial advisor to assist you along the path to retirement. As we hope to foster a long-term relationship with you, we would like to share some tips for interviewing potential advisors for this significant role in your life and your family’s future.
Fiduciary Responsibility: Your financial advisor should act as a fiduciary, prioritizing your interests above their own.
Compensation Structure: Ensure that your advisor is compensated directly by you rather than through the sale of products. A fee-only structure helps to minimize conflicts of interest and ensures that recommendations are based on what is best for you, rather than any potential commissions.
Active Listening: Your financial advisor should take the time to understand your goals, your family’s needs and your unique financial situation before suggesting asset allocations or payment.
What is a fiduciary and are you one?
According to the amended Investment Advisors Act of 1940, a fiduciary duty is comprised of both a duty of care and a duty of loyalty and applies to the entire relationship between the investment adviser and the client. The duty of care includes:
- The duty to provide advice that is in the best interest of the client,
- The duty to seek best execution of a client’s transactions and
- The duty to provide advice and monitoring over the course of the relationship.
The duty of loyalty requires advisers not to place their own interests ahead of the interests of their clients, and to make full and fair disclosure of all material facts and conflicts of interest.
According to Title I of the Employee Retirement Income Security Act (ERISA) we must:
- Meet a professional standard of care when making investment recommendations (give prudent advice)
- Never put our financial interests ahead of yours when making recommendations (give loyal advice)
- Avoid misleading statements about conflicts of interest, fees, and investments
- Follow policies and procedures designed to ensure that we give advice that is in your best interest
- Charge no more than is reasonable for our services
- Give you basic information about conflicts of interest
Retirement Investment Advisors, Inc., the advisors and staff, are fiduciaries.
Beginning to Plan for Retirement
How should I invest for my retirement?
What are your retirement goals? If your aim is to invest your savings to weather financial storms, it is essential to diversify across different asset classes, such as large-cap growth, small-cap value, core bonds and more.
Are there ways to pay less in taxes while I am working? What about when I retire?
Throughout your employment, we recommend prioritizing contributions to your employer- sponsored retirement plans, such as 401(k), 403(b), or 457 plans. By consistently contributing to these types of accounts, investors can potentially save thousands of dollars in taxes each year.
As you transition into retirement, it is essential to evaluate your income before implementing an effective strategy. The planning process should include retirement distributions, possible pension income, Social Security claiming strategies and various other items.
What is the best way to save for college for my children and/or grandchildren?
A college education is expensive, but enrolling in a 529 College Savings Plan offers a fantastic way to save. If you are a resident of Oklahoma, you will receive an Oklahoma tax deduction on the money you contribute to the plan. Additionally, any growth in the account is tax-free, as are the distributions used for qualified education expenses.
The individual who establishes the account is the account owner, while the student is the designated beneficiary. Importantly, there is no limit to the number of accounts held by you for the benefit of your students. Once one student has completed their education, any remaining funds can be transferred to another one of your other 529 plans to benefit the next student.
What is a Roth Conversion, and how do I know if it is right for my situation?
A Roth Conversion occurs when an investor withdraws a taxable distribution from their Traditional IRA and rolls the proceeds into their Roth IRA. Investors often consider Roth Conversions when they find themselves in a lower tax bracket but anticipate higher tax brackets in the future.
The best way to determine if a Roth Conversion is suitable for you is to consult with a highly qualified professional who can navigate the specifics of your individual circumstances.
I have just inherited a large amount of money. How do I decide what to do with it?
Inheriting money can solve many financial worries, but what steps should you take first?
Give yourself time to grieve – Hold on to the funds for about six months, allowing for emotional healing and minimizing buyer’s remorse.
Create or increase your emergency fund – Keep three to six months’ worth of living expenses readily available for unexpected situations.
Pay off debt – Focus on paying off the highest interest rate debt first, or consider the debt snowball method, which tackles the smallest balances first.
Consult a financial advisor – Discuss your goals, tax situation and overall financial outlook.
Legacy Planning
What should I do with my retirement account from my previous employer?
Leaving a job is an important time to sit down with a financial advisor and explore the four options available:
- If the previous employer approves, you can leave the account with them.
- If your new employer approves, you can roll the assets from the previous plan into your new one.
- You can take a full distribution and cash out the account. Important: There may be significant tax implications and penalties.
- You can roll the assets into a traditional Individual Retirement Account (IRA).
How will you arrange my retirement investments so I can enjoy retirement now and the rest of my life?
Creating a retirement plan requires a holistic view of an individual’s entire life. It is far better to have financial resources at the end of one’s life than to outlive those resources.
By developing an all-weather retirement portfolio, you can effectively navigate market fluctuations, distributions, inflation and taxes. This balanced approach helps to ensure your long-term financial goals.
Market Expertise
How does inflation impact my retirement plan?
It is essential to create a retirement portfolio that has been specifically designed to withstand inflation. Inflation will increase over time, raising the cost of goods and services and without proper planning, the impact of inflation to your retirement could be substantial.
The “experts” on TV say the markets are going down, what should I do?
The market will go up and it will go down. Various media outlets, including television, radio and social media, will often voice their opinions. Some will even provide specific advice on how to navigate the market, suggesting whether to buy or sell. However, it is essential to remember that acting on such advice requires you to be right when exiting and re-entering the market. A more effective strategy is to adhere to your long-term plan that you created with your personal financial advisor. Your plan has been tailored to weather economic storms, and staying committed to it will provide you with the maximum chance of success.
Our team of CERTIFIED FINANCIAL PLANNER® professionals will help you chart a course tailored to you and your goals, so you can move forward with clarity and peace of mind.