While older workers are finding some organizations open to hiring all-aged workers, many employee cultures remain focused on young talent to the exclusion of more experienced workers. One of the consequences of systemic ageism is that older workers may not have what they need to retire. Moreover, many people nearing retirement age (or newly retired) have not received financial advise on how to manage what they do have.
What should one do? This question is best answered by a qualified financial advisor.
But wait... aren’t financial advisors only for the wealthy? Not at all. Qualified financial advisors can be found for people with smaller retirement portfolios–even those just starting out.
How does one find the right financial advisor?
Experts recommend middle-class investors search carefully for a financial advisor. Ask family or friends for referrals. Even online searches can be worthwhile, so long as you ensure ethical practice by checking that no regulatory or disciplinary actions have been recorded at sites like investor.com.
One company that is focused on making financial management more accessible for pre-retirees and retirees is Retirable. Unlike other retirement management companies, Retirable does not have a required minimum investment so clients can come with what they have and know they will get the financial support they need.
Co-founded by CEO Tyler End, the concept for Retirable came after End saw his mother struggle with managing her investments.
“I started my career working in decumulation, a unique problem where hands-on advice can go a long way towards improving outcomes and giving people peace of mind. I mostly worked with high-net-worth individuals, but when I saw my mom looking for someone to trust when she retired, I realized this best-practice advice wasn’t available to everyone.”
The Retirable platform offers digital tools and one-on-one consultation at a competitive price. Retirable portfolios are created using proprietary technology and, along with planning and spending platforms, clients receive the kind of retirement support typically reserved for the wealthy.
“We try to meet our clients where they are,” said End. “Everyone has pressing questions on Social Security, Medicare, tax efficiency and how much can they can spend. We look to be everywhere people need us to be when searching for answers.”
Retirable is built for the 50 million Americans approaching retirement in the next decade who lack a formal retirement plan. Traditional retirement advisors overlook millions of people that don’t meet asset minimums but still need clear and confident retirement solutions. Retirable supports middle-class Americans who haven’t had the opportunity to receive personalized, professional advice for their retirement planning journey.
The biggest challenge End sees his clients struggling with is accumulating enough to retire.
“As a society, we generally associate retirement with travels abroad or purchasing a vacation home. We found that Retirable clients are simply looking to maintain their current lifestyle for as long as possible without financial worry,” said End.
Q & A With Retirable CEO, Tyler End
In a recent email exchange, End provided the following suggestions for accumulating and managing retirement funds.
What’s the one piece of advice you give to anyone, regardless of age, when it comes to financial management?
I firmly believe is that it is never too late to start making the right financial decisions! Many people procrastinate or have shame and don’t take proactive steps, but there are always adjustments you can make to improve your long term outlook. It’s not always the most fun, but there’s no better time to start than now. For everyone still working, this may seem obvious, but my advice is to live below your means—spend less than you make, and things will fall into place.
What's Retirable's investment philosophy for clients with cash?
There is no right answer for everyone—it all starts with building a plan to understand individual goals and the best use of funds. Our advisors are fiduciaries, so they build a plan before making a recommendation. Having said that, holding cash is great for creating a safety net in retirement, but with inflation, you are losing purchasing power. Make sure you are at least getting into a high-interest savings account if you want to hold the cash. For people jumping into the market, our advisors often rely on dollar cost averaging, given the volatility in the market.
What's the most crucial advice you give clients when the market is down?
Don't panic! Market corrections are normal. Although it's tough to put blinders on to the headlines, if you have correctly built your portfolio with the correct amount of risk, you can wait for the market to bounce back.
What asset allocation do you recommend for those about to retire versus those already retired?
Asset allocation needs to be reviewed consistently while working and throughout retirement. It is essential to include your capacity for risk (how much you can take to meet your goals) and your preferences. As people get closer to retirement, we build buckets to insulate some of their savings that will be liquidated in retirement from market risk. But again, there is no one answer for everyone.
What investment benchmarks do you use?
We tend to focus more on retirement income outcomes. Investment performance is just one piece of the puzzle, but we track our portfolios to the underlying benchmarks for each client’s asset allocation.
Every Age, Every Stage
While Retirable's mission is to create financial stability for every retiree, the right financial guidance early in life can significantly impact future financial stability. Good money management is foundational for anyone of any age or career stage. For financial peace of mind–now and in the future–consider working with a qualified, ethical financial advisor.
For younger investors, search for a fee-only advisor so you don't lose money paying people who rely on commissions to sell you assets that might not serve you best. In 2015, the White House Council of Economic Advisers calculated the annual cost of conflicted investment advice was about $17 billion yearly. That means clients pay $17B in commissions to advisors pushing funds that rewarded them–not necessarily the client.
Sound financial advice is always beneficial. When given early, it can result in having what you need when you need it–whether buying your first house or taking a sabbatical to volunteer or travel the world.
Sheila Callaham