How to Choose the Right Retirement Financial Planner

Financial Planning Tools and Trends | by Jules Buxbaum | Tuesday, February 11, 2025

Retirement financial planner selection can shape your life for decades to come. Yet many people skip critical steps when choosing the right advisor, leaving them exposed to unnecessary fees or poorly matched strategies.

If you’re starting your search and want to avoid common pitfalls, take a look at these common retirement planning mistakes many retirees make. A reliable professional can help you dodge these errors and boost your confidence in the years ahead.

Why the Right Planner Matters

A trusted retirement specialist should do more than just pick stocks and bonds. The goal is to structure your savings, investments, and withdrawal strategy so that you have the retirement lifestyle you envision.

In a 2022 TIAA Institute study, individuals working with financial advisors scored 22% higher on financial literacy tests, indicating real value in getting expert guidance (1). Qualified planners address unique elements of retirement, such as Social Security optimization, long-term care considerations, and estate strategies.

Finding someone who truly focuses on retirement can also help you explore tax-saving opportunities. This additional layer of support is essential once you begin drawing on pensions, IRAs, or Social Security.

2Pi’s Belief on Risk Allocation and the Glide Path Debate

We at 2Pi Financial hold a nuanced view that many investors do not take enough equity risk during their retirement journey. A low-risk approach may work well if you’ve accumulated significant wealth. But the typical person often needs stronger growth potential to sustain a satisfying lifestyle.

Traditional wisdom recommends reducing risk with age, commonly referred to as a "glide path." Yet our team sees this as overly simplistic. Factors such as future earning ability, current wealth, and personal goals are more important than age alone. For instance, if you’re 65 with an ongoing consultancy, your risk tolerance might differ from someone who’s fully retired at 60 without additional income.

Historical data has consistently shown that equities deliver greater returns over long periods. The Equity Risk Premium (ERP) is well-studied, and many economists see no fundamental basis for it to disappear. We integrate that evidence into strategies that align with each person’s financial circumstances, ensuring you’re not missing out on equity growth when it’s needed most.

Qualifications, Fiduciary Standards, and Compensation

When you’re comparing professionals, it helps to know the major certifications. A Certified Financial Planner (CFP) must complete rigorous exams, adhere to ethical guidelines, and complete ongoing education. Some advisors also hold designations like Retirement Income Certified Professional (RICP) or Chartered Financial Analyst (CFA).

Credentials matter, but so does fiduciary status. Fiduciary advisors must act in your best interest rather than just offering "suitable" solutions. That distinction reduces the chance you’ll end up with products that benefit the advisor more than you.

Additionally, fee structures can vary. Fee-only planners typically charge based on assets under management or a flat project fee, which may limit conflicts of interest. Commission-based advisors earn money through product sales, so be sure you understand any possible incentives they might have. Ultimately, choose a structure you’re comfortable with—one that fosters transparent advice.

Real-World Tools & Technology

Many retirement financial planners use advanced software to simulate multiple outcomes for your nest egg. Monte Carlo simulations, for instance, project how different market conditions might affect your monthly withdrawals. This helps you see whether you can handle unexpected shocks, like a sudden downturn in stock prices.

At 2Pi Financial, we offer a specialized suite of solutions through our proprietary Financial Planning Engine. To see these tools in action, explore our Two Pi Financial Planner. You can input details such as your current age, expected savings rate, and retirement goals, then quickly see how small tweaks might significantly improve your strategy.

Technology also enhances client interactions. Some advisors provide dashboards where you can view your portfolio 24/7, track milestones, and monitor spending. Real-time alerts about tax law changes or investment opportunities can further streamline decisions.

Key Elements to Evaluate Before Committing

Beyond credentials and tools, a personal fit is vital. Ask prospective planners how often they communicate or adjust strategies. Retirement isn’t static—your plan should adapt if you decide to retire earlier than expected or if your healthcare costs rise.

Social Security complexity adds another layer. Not everyone knows spousal benefit rules, restricted applications, or delayed retirement credits. A seasoned retirement advisor will walk you through these nuances, ensuring you collect the maximum benefit you’re entitled to.

Similarly, evaluate how well the planner manages market ups and downs. A 2023 Morningstar study showed that using flexible withdrawal strategies—adapting how much you take out based on market performance—can increase retirement income by over 20% (2). Explore how your advisor might implement these strategies and whether they offer guidance to calm nerves when markets dip.

2Pi’s Perspective on Individual Needs

Your retirement plan should factor in future earnings potential, current assets, and long-term objectives. That’s why we customize allocation strategies rather than relying on one-size-fits-all glide paths. We also pay close attention to your stage of life and how much time you might spend in retirement.

For instance, an older person might have an annuity or part-time work supporting cash flow. That stability could justify keeping a portion of assets in equities to benefit from long-term gains. Meanwhile, a younger person with significant wealth but low future earning potential might need a more balanced approach to avoid unnecessary portfolio volatility.

If you’d like to see how higher or lower equity exposure might look for you, explore specialized modeling tools or talk to a planner who truly personalizes advice. With 2Pi, our emphasis is on understanding each client’s mix of existing assets, future income potential, and overall tolerance for market swings.

Why Credentials Alone Aren’t Enough

Certifications reveal an advisor’s expertise, but the practical application of that knowledge defines their value. Look for evidence that they have helped people with scenarios like yours. A planner with 15 years of experience advising retirees in your profession may bring more relevant insights than a newly minted generalist.

You should also check that your chosen professional stays updated on regulatory shifts. In 2024, for example, the Employee Benefit Research Institute (EBRI) reported that 58% of retirees left the workforce earlier than planned—sometimes for reasons related to company changes or health (3). A proactive planner will inform you how such abrupt decisions might affect your retirement forecast.

Finally, verify an advisor’s disciplinary history. Tools like FINRA BrokerCheck let you quickly see if clients have filed complaints or if any regulatory authority has taken action. This step can save you from unwelcome surprises down the line.

Balancing Risk: Equities vs. Fixed Income

Allocating more to equities may feel scary, especially as you get older. However, 2Pi’s view, backed by decades of market data, is that greater equity exposure can be beneficial for retirees who need portfolio growth. Historically, equities outperformed fixed income over the long haul.

This doesn’t mean reckless investing. Instead, it’s about adjusting risk to match your future income prospects. If you still have earnings, even part-time, it provides a buffer that lets you ride out short-term volatility. If you’re entirely reliant on savings, you might maintain some stable assets to cover immediate expenses while investing the surplus in growth-oriented funds.

Diversification is also critical. A well-structured portfolio can cushion short-run market dips. You might even consider an array of international stocks, smaller domestic companies, and select fixed income instruments with minimal correlation to equities. If you’re curious about strategies to spread out your investments, you can learn how to diversify your retirement investments to limit risk.

Bottom Line

Choosing the right trusted advisor can make the difference between a stress-filled retirement and one filled with financial confidence. Look for someone with strong qualifications, a fiduciary commitment, and a willingness to tailor solutions around your personal circumstances. Ask plenty of questions, especially around risk management and longevity planning.

Finally, if you realize you need to plan catch-up strategies or reassess your timeline, see our tips on how to plan catch-up strategies for late retirement savers. Remember that expert guidance, combined with ongoing education, will help you adapt to changing conditions and preserve your peace of mind.

References

1. TIAA Institute. (2022). “Financial Literacy and Wellness: Results from the 2022 TIAA Study.” Available at: https://www.tiaainstitute.org/publication/financial-literacy-wellness(#)

2. Morningstar. (2023). “The Power of Dynamic Withdrawals in Retirement.” Available at: https://www.morningstar.com/research/dynamic-withdrawals(#)

3. Employee Benefit Research Institute. (2024). “Unexpected Retirements: Factors Driving Early Workforce Exits.” Available at: https://www.ebri.org/retirees/early-exits(#)