For many of us, retirement on the horizon means tightening our belts and cutting back on expenses. But before you start pinching pennies like there’s no tomorrow, some experts say you might want to pump the brakes.
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GOBankingRates chatted with financial gurus to uncover how a financial advisor could be your secret weapon in the battle against unnecessary retirement expenses.
Here are eight ways they could help you save smart, not hard.
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Budget Mastery
The plain and simple truth is you need to know where your cash is actually going.
Michael Santiago, chartered retirement planning counselor and senior financial editor for Annuity.org, said it’s crucial to “carefully assess your finances, including tracking your income and spending.”
Think of it as a financial treasure hunt: You might be surprised at the hidden gems (or money pits) you uncover.
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Debt Demolition
Got a pile of bills giving you nightmares? Welcome to the (horrible) club! Santiago said many people nearing retirement are juggling some kind of debt.
Here’s where your advisor becomes your new best friend. The person can help you “look at your debt holistically and determine the best way to tackle it all at once,” Santiago said.
Mortgage Makeover
Is your mortgage eating up a chunk of your income? Time to put it on a diet.
Santiago said advisors can help you find a loan with lower interest and more reasonable payments – something many people need, especially in a fluctuating market.
Transportation Transformation
Your wheels might be costing you more than you think. Santiago said a big slice of a retiree’s budget pie often goes to transportation costs.
Here’s where an advisor can come in, helping you figure out how to make your transportation costs shrink. Whether it’s a new set of wheels or transitioning out of owning a car, an advisor can help.
Expense-Tracking Ninja Skills
Remember that budget we talked about earlier? It’s not a “set it and forget it” deal. Santiago said an advisor can help you manage day-to-day expenses and trim costs that you just don’t need anymore.
It might be time to bid farewell to that gym membership you haven’t used since 2019.
Investment Wizardry
Your retirement savings shouldn’t just sit there looking pretty. Tyler Meyer, founder of Retire to Abundance, said an advisor can help optimize your portfolio to boost your retirement income.
“By optimizing your investment portfolio, a financial advisor can help increase your retirement income,” he said. “They can suggest reallocation or diversification strategies to maximize returns and mitigate risks.”
Tax-Slashing Strategies
Taxes in retirement? Yep, unfortunately they’re still a thing. But Meyer has good news: “[Advisors] can help you take advantage of tax deductions and credits, optimize your withdrawal strategies from retirement accounts, and reduce your overall tax burden.”
Less money for Uncle Sam means more for your retirement adventures.
Personalized Game Plan
Every retiree’s journey is unique, and Aaron Cirksena, founder and CEO of MDRN Capital, said it’s all about personalizing the plan to you.
“[An advisor] can help you decide things like whether or not annuities are a good fit for you,” he said. “Or the best way to balance risk. If you are looking to cut expenses, they can help with income strategies to maximize your retirement income.”
That includes advice on rollovers, long-term care planning and asset preservation.
Final Thought
Cutting expenses for retirement doesn’t have to mean living on ramen noodles and giving up your daily latte. A good financial advisor can help you trim the fat without sacrificing the flavor of your retirement years.
So, before you start wielding those budget-cutting scissors with wild abandon, consider enlisting a financial advisor as your money-saving sidekick. Your future self (and your wallet) will thank you.
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This article originally appeared on GOBankingRates.com: Cutting Expenses for Retirement? 8 Ways a Financial Advisor Could Help
