Retirement planning can be intimidating for many people. The market goes up one day, and falls the next. Experts and pundits talk about savings plans, investment vehicles, trust funds and more. But a new article suggests that those who seek out advice for their finances tend to fare the best.
According to MarketWatch.com, investors who were classified as “seeking help” in their retirement finances tended to earn about 3% more per year off their investments.
Three percent may sound small, but the article points out how that number can grow over a lifetime. For a 45 year-old looking to invest $10,000, a 3% annual difference could become about $71,000 for someone seeking advice, versus about $42,000 for someone who didn’t seek any help.
“We did have enough data to say that managed accounts ... versus all help together, did slightly better over this time period,” Wei Hu from Financial Engines, told the news source. “But these are fairly imprecise calculations, and these are different forms of help that ultimately serve different people.”
One key message for retirement living seniors and their families is that because anything can happen, and assisted living communities can vary in price, it’s best to learn as much as possible about various investment and savings options, before making any decision.