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Here are 4 tools that work best for retirees
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There’s a lot of advice out there on how to prepare and save for retirement; But once you have your nest egg and are ready for the next phase, what happens?
You can’t just ignore your finances and put your bills on autopilot. Carefully managing your personal expenses and knowing how to properly manage your finances in retirement are equally important.
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Fortunately, there are many ways to take control of your accounts and investments, monitor your spending, and implement sustainable budgeting strategies.
Whether you are about to retire, retiring early, or already enjoying your retirement, here are some ways to track your financesaccording to financial experts.
Rich people know the best financial secrets. Learn to copy them.
Fixed Fee Consultant
Financial advisors can charge hefty fees that add up, but Mike Dion of F9 Finance suggested a way around this.
“For those seeking another set of eyes,” he said, “I highly recommend a flat-fee advisor to review your finances annually or quarterly.
“Unlike traditional advisors who take a percentage of your assets, flat-fee advisors are fiduciaries who are obligated to give you the best advice. Plus, as your money grows, their fees don’t increase.”
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401(k) Manager
Eric Mangold, founder and wealth manager of Argosy Wealth Management, said your 401(k) is a good place to start.
“There are many great planning tools for investors to use,” he said. “If you have a 401(k), a good place to check is to look at the company that administers your 401(k).
“When you log into your 401(k) account, many of these providers have retirement calculators, and many of these calculators are a pretty basic way to get started. Some will give you a grade or score that shows you what path you’re on to retirement. I think these calculators are a good place to start to understand your retirement readiness.”
Qualified financial professional
While Mangold suggested using retirement calculators, he also stressed the importance of finding a professional for guidance. “Retirement is not a do-it-yourself project,” he emphasized.
“You’ll want to know exactly how much money you’ll need in retirement and what events could pose a threat to derail your retirement — such as a long-term care event, caring for an elderly parent, poor market performance, etc.”
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He continued, “This is so unique for everyone as everyone’s financial situation is different. You’ll want to meet with a qualified financial professional and have a detailed, personalized retirement projection built for you. It will show the money coming in the door from your investments, pension, Social Security and other sources of income.
“And it will also show you the money going out the door in expenses and — don’t neglect this — taxes! Typically, the calculators I use with clients are a bit more advanced and detailed compared to the ones readily available.”
Investment Tracker
For those who prefer to manage their finances on their own, portfolio tracking websites or apps can be very helpful.
Dion recommended Empower – “an easy-to-use system that connects all your assets from different brokers into a single dashboard. It has excellent tools for planning retirement spending and withdrawals, and provides information about fees you may not know you’re paying. The best part is that Empower is completely free to track.”
Other sites or apps to consider include Morningstar, Sharesight, and Yahoo Finance.
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This article originally appeared in GOBankingRates.com: I’m a financial planning expert: here are 4 tools that work best for retirees