Using a Financial Planner Can Increase Retirement Income By 23%, With Adam Moeller, Denver, Colorado
A new Morningstar analysis finds that those working with a financial planner see 23% more in their retirement income. There really hasn't been a way to "value" what financial planners do for people until now and David Blanchett, head of Retirement Research for Morningstar, came up with five different planning techniques for financial planners to use and see what type of value it produces.
Of these five techniques, total asset allocation, a dynamic withdrawal strategy, annuity allocation, tax planning and lialibity-related optimization, the top two were dynamic withdrawal strategy and asset allocation. Adam Moeller, a financial planner out of Denver, Colorado, says that those top two factors are important to look at when trying to get that extra 23% of income.
With those two techniques, Moeller says you'd have to be working with someone who understands those concepts in trying to attain that extra 23%. The withdrawal strategy accounts for 9% of that 23%, so Moeller says that working with an advisor who knows how to successfully take out more income is important and is something a lot of advisors don't know how to do. He adds that there's a big difference between the asset growing phase and distribution phase and it's the distribution phase that Moeller focuses on with his clients.
The analysis also looks at the costs associated with working with financial advisors, many of whom will charge at least 1%. Moeller says that working with an independent advisor, like himself, who receives payment from the company he works for instead of from the client, is a huge benefit for the client.
Adam Moeller can be reached at 720-974-4800 or at myajmfinancial.com. He spoke with Retirement News Today, providing online retirement video news content. Retirement News Today is a featured network of Sequence Media Group.