You can only get so far on your own with retirement planning!
When faced with an obstacle, it is very natural to turn to your neighbour for help. No one seems to have the monopoly on progress and if one person happens to extend help to another, they are sure to need some for themselves before very long. From the earliest “farmers’ markets” to the international exchange of goods foreseen by Adam Smith in the Wealth of Nations this cooperation has procured great benefits for society.
Therefore, a topic beyond your field of expertise and ability may put you off starting the task in hand at all. If something is out of your comfort zone, it can be more difficult to judge whether the help being offered is actually what you need.
This is no truer than with financial tasks, such as planning for your retirement. Any knowledge gaps you may have around investment or taxation together with a lack of experience, are in fact what push you to seek professional help. But in an area with such important consequences, what can you do to ensure you engage an adviser who will suit your own style and needs?
A general rule is to observe their behaviours, so as to identify whether the adviser you want to help you build wealth, isn’t trying to just help themself to yours. One of the first things you can test early on in a relationship with a professional adviser is the amount of space you are being given. In an area as complex as financial services people need diverse amounts of time to come to conclusions, due to different levels of understanding and experience,. Invariably, the needs of individual investors do not fit comfortably with an industry led ‘sales-cycle’. So, if you feel yourself being whizzed along to decide, at any speed which makes you the least bit giddy, ask the adviser for more time and see what they make of that. If they have your best interests at heart, they will have already addressed it; other advisers will either pressure you to act early or wane in their desire to help you, both of which are sure signs you could find a better fit elsewhere.
Another important area is patience. Owing to the nature of inflation, investment returns and level of product complexity, you may find yourself ‘understanding’ matters when explained to you in person, but then be unable to explain to someone else, what you have just heard. Without rushing ahead, your adviser should be prepared to explain something as many times as it takes for you to feel comfortable, rather than moving swiftly on. At times, this may seem contrary, slowing down your progress towards identifying or implementing a solution. But ultimately it offers greater value in the long term by helping you make better investment decisions without the unnecessary jumble of emotions you hear many others describe in the wake of stock market gyrations.
Taking time to concentrate on the areas you can control, whilst acknowledging some may be beyond you, will help in dispelling the fog often experienced in planning for retirement. More speed and less haste will be of greater value, as will the helpful advice offered by an adviser with your best interests at heart.