How to Save Money on Financial Advisor Fees in Retirement

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Understanding Financial Advisor Fees

Financial advisors typically charge 1% to 4% for managing your account. Additional fees may apply for specific accounts and services. These fees can significantly reduce your retirement savings.

Alternative Strategies to Minimize Fees

  1. Opt for Fixed Indexed Annuities with GLWB: Choose a fixed-indexed annuity that offers a Guaranteed Lifetime Withdrawal Benefit (GLWB). This option provides a steady income stream in retirement and is usually procured from an annuity broker. Brokers earn commissions from insurance companies, not from your pocket.
  2. Timely Retirement Planning: Plan your retirement so that your Social Security benefits and GLWB payouts equal at least 75% of your pre-retirement income. GLWB payouts often exceed typical advisor withdrawal strategies and guarantee income without market fluctuations.
  3. Incorporate Life Insurance: Protect your surviving spouse through a life insurance policy. This step is crucial for comprehensive financial planning in retirement.
  4. Consider long-term care insurance: Investing in long-term care insurance can safeguard against future healthcare expenses, a significant concern for many retirees.
  5. Invest in No-Frills Annuities: If additional funds are available, consider investing in a fixed-indexed annuity without extra features. This investment ties your gains to a stock market index, locks in profits, and offers full protection from market losses.
Saving On Financial Advisor Fees In Retirement

Benefits of These Strategies

  • Reduced Dependency on Financial Advisors: By adopting these strategies, you can lower your reliance on financial advisors, potentially reducing your overall advisor fees to around 1.5%.
  • Market Crash Protection: These strategies offer protection against stock market downturns, ensuring your retirement funds are secure.
  • Control Over Personal Finances: You gain more control over your retirement finances, leading to potentially better financial outcomes.

Conclusion

By considering alternative financial products like fixed indexed annuities with GLWB and incorporating insurance policies, you can significantly reduce financial advisor fees and enhance the security of your retirement savings. These steps ensure a more controlled and stable financial future in retirement. Contact us today for a free quote.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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