Starting your retirement planning early and seeking professional guidance is crucial to ensuring a smooth and successful retirement. However, with the abundance of experts, advisors, and salespeople out there, finding the right person for such an important task can be challenging. Zynergy Retirement Planning will break down everything you need to know about financial planners and provide you with all the essential information to make an informed choice when selecting a retirement planning professional in Mercer County, NJ.

When Should You Start Planning for Retirement?

In simple terms, you should begin planning for retirement as soon as possible. The ideal time to start saving is in your 20s, right after leaving school and beginning to earn a paycheck. This is because the earlier you begin saving, the more time your money has to grow. The gains you earn each year can compound, meaning they can generate additional earnings in subsequent years. This compounding effect makes starting early a key factor in building wealth for retirement.

For helpful tips and answers to your important retirement questions, check out our blog, including topics such as:

• How much should I contribute to my 401k?
• How much is enough for my emergency savings?
• What is a Roth IRA Conversion and when should I consider it?
• How can I supplement my income in retirement?

Types of Retirement Planning Professionals

The next important decision is which type of Mercer County retirement planning professional to hire. Within Certified Financial Planners, the highest industry standard, there are three common compensation models that can influence the kind of experience you’ll have:

• Commission-Based Financial Planner: This planner’s compensation is entirely commission-based, meaning they earn money from selling financial products. Their main goal is to sell you a product, not necessarily to offer sound financial advice. Think of it like a car salesman who pushes you to buy an expensive sports car when you really need a budget-friendly family car that suits your needs. This creates a frustrating experience because their interests don’t align with yours.
• Fee-Based Financial Planner: This planner earns a small fee from clients in addition to commission-based sales. While this model aims to make the planner more invested in your success, the planner’s compensation is still largely based on product sales, leading to potential conflicts of interest. Imagine a car salesman who steers you toward the family car you need but continues to push unnecessary expensive add-ons.
• Fee-Only Financial Planner: This planner earns 100% of their income from clients and does not receive commissions for any products they recommend. This eliminates most conflicts of interest, as their sole focus is on your financial success. In the car dealership analogy, a fee-only financial planner would show you exactly what you need, recommend the right features, and help you get the best deal, without any ulterior motives.

Why Choose a Fee-Only Financial Planner?

A Fee-Only Certified Financial Planner (CFP®) is qualified, and importantly, they have your best interests in mind. Here are three major reasons why selecting a fee-only financial planner in Mercer County is the best choice:

• Fewer conflicts of interest: A fee-only planner has no incentive to recommend products that benefit them more than you. While fee-based planners can still provide good service, their compensation model may create questionable conflicts. A fee-only planner eliminates these concerns, ensuring that their advice is truly objective.
• The focus is on financial advice: Fee-only planners prioritize giving you sound financial advice over selling financial products. Their advice is aimed at helping you, which will ultimately benefit them as well, creating a win-win scenario.
• Percentage-based payment model: Most fee-only financial planners charge a percentage of the assets they manage. This creates a mutual incentive for the planner to be efficient with your money, as they also benefit from your returns.

Ensure Your Retirement Planner is a Fiduciary

Choosing a fee-only financial planner is a great first step, but it’s also crucial to ensure that your financial advisor is a fiduciary. A fiduciary is legally and ethically required to act in your best interests. This means they must put your needs first when handling your wealth management, avoiding any conflicts of interest that could undermine your financial goals. With a fiduciary, you can trust that the advice you receive is objective, tailored to your unique needs, and always focused on your best interest.

When Do People Typically Retire?

Retirement should be a personal decision that reflects your individual desires, values, and financial situation. Learning about the average retirement age might be interesting, but it won’t necessarily help you determine the right time for your retirement.

While many people retire between ages 62 and 70, everyone’s circumstances are different. To determine when the right time to retire is for you, consider these questions:

• When can I afford to leave my job, whether for semi-retirement or full retirement?
• Am I physically able to continue working?
• Do I still find work fulfilling?
• How will I spend my time once I retire?
• Would I rather work longer for a more comfortable retirement or retire earlier and live a simpler life?

Answering these questions will help you develop a retirement timeline that works for you. Remember, retirement isn’t about when others retire; it’s about making the decision that aligns with your personal, financial, and emotional circumstances.

Get in Touch with a Retirement Planning Professional Today

If you’re in or near retirement and live in Mercer County, NJ, it’s important to find a Certified Financial Planner you can trust. Zynergy Retirement offers retirement planning services for Mercer County residents. As a fee-only CFP® and fiduciary, we build long-term relationships with clients based on unbiased, objective financial advice. Reach out to Zynergy Retirement Planning today to learn more!