IN THE PRESS:

The year just started, but that doesn't mean you aren't already making simple financial mistakes that could drastically affect your retirement.

Are you properly contributing to your retirement accounts and making sound investment choices? Many people think they can make these decisions on their own.

However, a 2019 Northwestern Mutual study found that U.S. adults who work with a financial advisor report “substantially greater financial security, confidence and clarity than those who go it alone.”

The value of working with a financial advisor varies by person and advisors are legally prohibited from promising returns, but research suggests average additional investment returns can range from 1.5% to 4% more each year. 

SmartAsset’s new tool makes it easy to find the right financial advisor near you in just a few minutes. Our exclusive, no-cost tool matches you with up to three local fiduciary financial advisors that have passed a rigorous screening process. We confirm each is registered with the U.S. Securities and Exchange Commission (SEC) or the appropriate state regulator, possess the proper licenses and have no pending or valid regulatory disclosures within the past 10 years.

Here are five critical retirement planning mistakes you're already making this year and how to fix them.

1. You aren't working with a fiduciary.

When looking for the right financial advisor to accomplish your financial goals and plan for retirement, it’s important to make sure you find one that puts your best interests first -- a fiduciary.

By definition, a fiduciary is ethically bound to act in another person’s best interest. This eliminates conflict of interest concerns and makes an advisor’s advice more trustworthy.

All of the financial advisors on SmartAsset's platform are fiduciaries, so you'll always be matched with advisors who will work in your best interest.

2. You're neglecting interest rates.

The national average interest rate for a savings account is just 0.06%, according to the Federal Deposit Insurance Corporation (FDIC).

But you can easily find savings rates as high as 2.00%. Moving liquid assets to a savings or checking account with higher interest is one of the simplest ways to save extra money.














3. You're neglecting your company's retirement plan.

The retirement savings option most often overlooked is the most common: your 401(k). Regardless of your target retirement date, you should contribute as much as possible to your tax-deferred retirement account, especially if there is a company match.

These work-sponsored options will also lower your taxable income. You can contribute up to $19,000 in 2019.

4. You're neglecting your health.

Healthcare will be one of your biggest retirement expenses: Fidelity estimates 65-year-olds retiring this year will spend over $275,000 on healthcare costs. What's worse: Medicare may not cover all associated expenses.

Of older adults, 80% have at least one chronic disease and 77% have two or more, according to the National Council on Aging. Another sobering statistic: 90% of Americans ages 55 and over are at risk for high blood pressure, a disease preventable through basic lifestyle choices. 

5. You're still planning for retirement by yourself.

Financial advisors can help you effectively plan how best to allocate your savings, where to invest and how to avoid paying unnecessary fees and taxes along the way.

The value of working with a financial advisor varies by person and advisors are legally prohibited from promising returns, but research suggests average additional investment returns can range from 1.5% to 4% more each year

This no-cost tool makes it easy to find the right financial advisor for you. Now you can get matched with up to three local fiduciary investment advisors that have been rigorously screened for regulatory disclosures and to confirm their licenses. The entire matching process takes just a few minutes.

Follow These Steps to Get Matched With the Right Advisor for You

1. Simply enter your ZIP code below.

2. After you enter your ZIP code and answer questions about your financial goals, you can compare up to three top advisors local to you and decide which to work with.

3. Enjoy a better financial future!

Get Smart with Your Assets

Investing involves risk and no situation is the same. This is in no way intended as a personal recommendation and investment decisions are solely those of the reader.

5 Critical Retirement Mistakes You've Already Made This Year

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SmartAsset is a personal finance technology company that features a financial advisor matching service. Financial Advisors who appear on SmartAsset are from companies with which SmartAsset receives compensation. SmartAsset takes into consideration wealth and location to determine how to match users with advisors. SmartAsset doesn't include the entire universe of Financial Advisors.

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