3 money tasks you shouldn’t tackle on your own
No one cares as much about your money as you do, but never asking for help can be dangerous — and expensive.
In a previous column, I detailed the hazards of trying to do your own estate plan and how problems often aren’t apparent until it’s too late to fix them. The following financial tasks also are more complex than they may seem, and the consequences for ignorance can be severe. Hiring expert help may ultimately save you a bundle.
Deciding when to retire
People have to make a lot of decisions around the time they retire. Many of those choices are irreversible and can have a dramatic impact on future comfort.
If you withdraw too much money from your 401(k) or IRAs, for example, you could run out of cash before you run out of life. Retiring in a bad market is particularly dangerous, since you’re siphoning money from a shrinking pool and the amount you spend won’t be able to benefit from the inevitable upturn.
But you also can make a mistake by hoarding your money, perhaps wasting the precious early years of retirement when your energy and health would allow you to travel or pursue other interests, says Ken Hevert, senior vice president for retirement investing at Fidelity Investments.
Social Security claiming strategies, pension payout options and financing medical care in retirement are other issues that could use an objective second opinion from a fee-only financial planner. You can get referrals from the National Association of Personal Financial Advisors, the Garrett Planning Network and the XY Planning Network.
Handling an IRS audit
Former tax litigator Cari Weston (no relation) remembers listening in horror as a CEO client’s wife started chatting with their IRS auditor. The wife had been told not to volunteer information, but she casually mentioned traveling via private jet to