3 Investment Questions to Ask if You’re Planning for Retirement

Jan 18, 2017 | Blog, Retirement

In retirement, your investments and savings have to last the rest of your life. So maximizing every dollar and making sure you have a sound investment plan matters more than ever at this stage. That’s why retirees should consider the following investment questions to ask themselves or their financial advisor:

Is your advisor a fiduciary?

Unbeknownst to many, there are different legal classifications for financial advisors. Unlike visiting a doctor, not every advisor is required to act in your bests interests at all times. Many advisors are legally brokers; meaning they are legally held to the suitability standard and only have to give advice that is deemed “suitable” for their clients. Specifically, if they have a series 7, that technically makes them a broker, even if they say otherwise. This can entail markups, hidden fees, and advice based on commissions.

Instead, one of the investment questions to ask your current or future advisor is whether they’re a fiduciary. Unlike brokers, fiduciaries are held to a higher legal standard, and are required to act in your best interests at all times. This can ensure your advisor is sitting on the same side of the table as you, rather than working somewhat outside your interests.

Are you conservatively prepared for a long retirement?

Thanks to advances in science and medicine, today’s retirees will live longer than ever. While this is great in nearly every sense, it can pose some financial problems in retirement. It’s no small wonder that many Americans simply aren’t prepared for longer-lasting retirement, and often mistakenly build a nest egg that can last a few years, rather than a few decades.

Instead of risking a nest egg that falls short, consider conservatively planning for a lengthy retirement. I often tell clients to plan like they’ll live to be 100.

Are you prepared to invest for the long-run?

Building an extensive nest egg requires careful long-term investing. This can prove difficult in times of volatility, when you’re tempted to make short-term, knee-jerk reactions instead. The data shows that trying to protect your wealth by timing the markets often results in the exact opposite effect – causing you to buy high and sell low.

That’s why another important investment question to ask is whether you have the proper risk tolerance and asset allocation to invest for the long-run. Wise investors create portfolios that allow them to comfortably ride out ups and downs in the markets to steadily build their wealth for retirement.

Although nobody enjoys drops in the market, the right portfolio is one where you can handle those drops effectively to reach your goals over time. This is a blend of art and science, and it involves adjusting your asset allocation based on your unique investing timeframe.

Learn more about creating a worry-free retirement

At LexION Capital, we help our clients achieve the retirement goals through bespoke portfolio solutions. Our advanced forecasting tools can allow you to pre-experience your retirement in different investing scenarios, and  If you’d like to learn more about how we can help, don’t hesitate to reach out to us today.


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