IRA & Retirement Planning Mistakes: Don't Fall Victim To Bad IRA And Retirement Plan Advice

By Megan R. Grayson

Clint Eastwood playing "Dirty Harry" warns, "A man's got to know his limitations." This advice is particularly appropriate for financial planners and advisors who are giving advice beyond their expertise. Though I am biased because I have over 27 years of technical expertise in the IRA and retirement plan area, the lack of knowledge in this area can cost clients hundreds of thousands or even millions of dollars.

There are a few things to consider when you are planning for old age. You have to reach a decision with regard to the income you will need in order to live a comfortable life as a retiree. You should take into account the medical expenses and vacations that you will have while reducing costs such as your child's education and rental fees if you own a house at the same time. You should also determine the amount you need to regularly save at this very moment in order to reach your goal. In case you do not have enough yet, you can start small with what you have at the moment. It will also benefit you to select the plan that will help you achieve your requirements. Also, it is advisable for you to invest a certain amount of money on a monthly basis in order to enjoy a healthy life as a retiree. Lastly, start saving money now. This will be one of the best suggestions that you will ever get in your life.

Planning early will come in useful in the latter part of your life and it will also help you minimize the burdens that you will have financially during your life as a retiree. You can also benefit from the services from the financial planners. These experts will be able to guide you on how to find the right methods that will help you reach your requirements.Cooperation is the key to successful retirement planning for couples. Many couples get themselves into trouble because one spouse or partner handles all of the investments and retirement planning. This is a terrible mistake because at some point that individual may not be available to take care of those chores.

All these things would look and sound challenging but there are financial planners that could assist you in achieving your plans. These professionals can prepare financial planning for folks covering various features of personal finance. It is indeed hard to manage all these things by ourselves since we are also busy working and dealing with other concerns in our lives. Good thing that there are experts that can show us the pros and cons within our plans and make adjustments to fit our needs. They determine all our financial goals by listening to our priorities and purposes in life as well as the other essential factors of our personal lives to aid us in obtaining what we desire in the future.

Retirement Planning is a Family Affair.Even if one spouse normally takes care of the retirement investments both need to be in a position to take charge of them. This means both spouses need basic information that can let them take over the investments and funds at a moments' notice. This information includes:The names and contact information for all of the professionals used including retirement planners, financial advisors, insurance agents, brokers, accountants, tax preparers and attorneys.

The basic information for all your bank, brokerage, retirement and other financial and investment accounts. This includes the name of the institution, the institution's contact information, the account numbers, passwords and user names for online account access and the addresses of any websites used to access or monitor the accounts.The location of all paperwork related to retirement planning including wills, legal documents, insurance policies, annuity policies, prospectuses, checkbooks, etc.How to access all of the investment and bank accounts. If you have an IRA, 401k, money market account, brokerage account or CD both spouses should know how to access it and withdraw money. If you have a life insurance policy with cash value both spouses should know how to access it and borrow money.

Is amazing how many questions a retirement planning consultant, or financial planner must ask these days to comply with all the federal and state requirements. There are what they call; "know your customer laws," and therefore the practitioner must ask all the questions and fill out all the forms. Then there are the questions that the retirement customer asks. Sometimes they are silly things such as; "should I be buying gold?"Another challenge that retirement planners and financial consultants must deal with is that they generally work for a larger firm that also has rules to stay out of hot water with the SEC and consumer protection agencies. Often this can get in the way of asset allocation when a given client wants to play it safe for their retirement, and then gets some wild hair up their rear end to go and make a silly and non-prudent financial investment decision on their own.

Both of you should have the legal right to access the accounts. Read all of the documentation and make sure this is the case. If not get it changed so it will not be a hassle later on.If you are not married you should check with an attorney to see what your rights are in your state. The law can vary widely from state to state and some states may not recognize some living arrangements. Something to be aware of is that relatives could try to claim they have legal powers over your partner or his money if there is no formal legal marriage. It may pay to get married or set up a legal arrangement such as a domestic partnership to protect your rights.

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