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6 Reasons to Work With a Financial Advisor in Retirement

By U.S. News & World Report

Financial advisors have a bad reputation in many circles, because some of these professionals are simply interested in taking your money. Yet, a competent manager can be worth many times the cost. Here’s how a financial advisor can help you throughout your retirement years.

Crisis management. Transitioning the day to day management of your financial portfolio to your spouse or heirs will be seamless if you already have a financial adviser. I love thinking about my portfolio, and I believe no one can manage our family’s assets more efficiently than I can. But our finances will be managed haphazardly if I suddenly fall ill and cannot manage our portfolio. My wife has absolutely no interest in figuring out all the jargon on her own, so it’s better for us if I find someone who can competently carry out our investment strategy while I’m still able to just in case something happens to me.

Someone else to crunch the numbers. You probably want to focus on something else in retirement than thinking about the numbers all day. Retirement can be fun when you get to spend all of your energy on something that makes you happy. If portfolio management doesn’t excite you, then getting someone else to think about it for you is a good idea. You can outsource a job that doesn’t interest you, just as you might hire a house cleaner or gardener. The convenience can really enhance your quality of life.

Guard against cognitive declines. Even if you are a wealth building expert, you may not be able to properly manage your portfolio one day in the future. You could experience cognitive or physical declines or other health problems that render you unable to properly manage your money. You may think it’s too early to find a third party to take care of your assets now, but it may be too late once you realize something is definitely wrong.

A second opinion on your spending plan. The accumulation phase of retirement planning is straight forward for many people: Save aggressively, have a solid investment plan and stay the course. But spending down assets is an art as much as a science. Many people have trouble spending down their portfolio in retirement and end up skimping on their lifestyle because they fear running out of money. A well trained financial advisor can bring much needed comfort, because he can help coach you on how best to deal with seeing a smaller portfolio balance on a continuous basis.

A voice of reason. A financial advisor can help to keep you from selling low in a panic once you no longer earn a salary. It’s one thing to hold onto stocks during a financial crisis when you have a stable job, but it’s an entirely different scenario if stocks plunge 60 percent with no end in sight when you are retired and need that portfolio to hold up to a few decades of withdrawals. Far too many retirees bail out of stocks in every bear market. If a financial advisor is able to convince you to stay the course next time the markets drop, then she would have earned her pay many times over.

Financial networking. A financial advisor can refer you to other financial professionals. You might need a lawyer to discuss how much liability you need to insure against, a certified public accountant to work on your taxes and an estate planner to update your trust documents. Finding the right person to handle your needs can be a tedious process. Your financial advisor, who already knows your situation well, can save you time by referring you to someone who already deals with clients who have similar levels of assets and concerns as you.

David Ning is the founder of MoneyNing.com .

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6 Reasons to Work With a Financial Advisor in Retirement originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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