Meet Brandon Renfro, a financial advisor and columnist with a wealth of knowledge about personal finance. In 2022, after retiring, Brandon experienced a significant loss of 30% of his 401(k) which was invested aggressively. A year later, he saw a gain of approximately 20%. Now, Brandon is at a pivotal point where he’s making decisions about the future of his retirement account. Should he transfer his 401(k) funds to his traditional IRA and let an advisor manage the account, or should he rebalance the stock/bond percentage to a less aggressive allocation?
Bev, the person asking for advice, has a compelling question. With the expertise of Brandon Renfro, a Certified Financial Planner, and SmartAsset columnist, we dive into the complexity of this situation. Rather than focusing solely on returns, Brandon recommends taking a broader and more holistic approach by considering individual financial goals, attitudes, lifestyle preferences, and risk tolerance. By seeking guidance from a financial advisor, Bev will receive personalized assistance in aligning her investments with her retirement goals.
Drawing on his vast financial background, Brandon emphasizes the importance of assessing one’s risk tolerance and investment horizon. A key factor in decision-making lies in understanding personal goals and what the money will be used for. Does it need to support current income, or is it intended as a legacy for heirs? These crucial goals should drive investment decisions, thereby ensuring a thoughtful and intentional approach.
When contemplating whether to roll over her 401(k) into an IRA, investing 100% in equities, and letting an advisor take the reins, Bev should carefully consider her desired outcomes. A financial advisor who also specializes in financial planning will be instrumental in this decision-making process. By utilizing the support of an integrated financial planner, Bev will receive tailored investment guidance that aligns with her financial objectives and future plans.
Brandon’s ultimate advice is this: choices about investment allocation should never be made in isolation. They must be considered within the context of personal situation, attitudes, and goals. Whether opting for a self-directed approach or seeking the assistance of a financial advisor, this thoughtful and comprehensive assessment is vital.
For Bev and many others approaching retirement, finding the right financial advisor doesn’t have to be a daunting task. SmartAsset’s free tool matches individuals with up to three vetted financial advisors, enabling introductory calls to decide on the right fit. This personalized approach ensures a seamless and rewarding journey towards achieving financial goals.
As Brandon Renfro, CFP®, shares his wealth of knowledge, he continues to provide insightful advice and recommendations on aspects of personal finance and tax topics, delivering clarity and brevity in his responses to reader questions. If you’re seeking comprehensive financial guidance and are eager to make informed decisions, reach out to Brandon at [email protected]. Keep your eyes peeled for Brandon’s future columns – your question might just be next!