I know quite a few Herbalife distributors who wish to retire early. But every time I ask them about their retirement plan, they go blank. So I tell them it’s time to hire a retirement planning consultant.
Most Herbalife distributors are self-employed. Others are doing this job as a side hustle. The people I know who wish to retire are either self-employed or employed but wish to just enjoy life.
But there’s always a fear of retirement. It’s especially true if you have not saved enough. Not all Herbalife distributors ended up being rich.
When I had the chance to talk to one of them (self-employed) about retirement, she said she wants to but she was afraid of what was to come. What if her savings isn’t enough?
Enter retirement planning consultant.
What is a Retirement Planning Consultant?
This consultant specializes in retirement planning. It’s beneficial to work with this professional to map out a plan to ensure that retirees will have the resources required to support themselves during retirement.
Unfortunately, this type of consultant isn’t created equal. Hence, if you’re a Herbalife distributor, you will want to do your research to find an advisor whom you feel comfortable working with.
What Kind of Consultant to Hire?
Most consultants are life insurance salespeople. This is sad. They can’t help you because they simply want to sell you a life insurance policy.
If you really wish to build a retirement nest egg, then it’s ideal to hire a certified financial planner.
To find a financial consultant, you should ask the people you trust for recommendations or references. Narrow down your options before interviewing potential candidates.
It’s best to hire a fee-based consultant, instead of an advisor who gets commissions in return for recommending financial products.
You may talk to a bank advisor. However, it’s likely that the person will only recommend his/her bank’s mutual funds. The fees could be high if you choose this route.
What to Expect from a Retirement Advisor?
When you sit down with an advisor, you should expect to have in-depth information about your finances. That’s why before meeting with the consultant, expect that he’ll/she’ll ask for your basic financial information, like your assets, real estate, and resources of value.
The advisor may also inquire about mortgages, credit card debts, student loans, and other loans.
Once you share these pieces of information, he/she will draft a report to provide you with a detailed plan for your retirement. The report will also indicate how much you can withdraw from your account every month once you retire.
Furthermore, the consultant will take you through the tax considerations. For instance, he/she will tell you the ways to minimize the taxes you can pay on your other assets. And if you end up with many assets, the consultant will provide you with some guidelines to curb your estate taxes.
It’s ideal to talk to a consultant who’s also a portfolio manager. This person may give you a portfolio that fits your financial goals.
If that person can’t set up a portfolio, he/she may recommend someone who can.
It’s important to note that you can hire several people to comprise your retirement planning. However, you have to remember that each person will charge a fee.
This is why it’s best to inquire about their fees before hiring one of them.
What are the Fees of a Retirement Planning Advisor?
They can charge hourly. Others will charge as a percentage of assets. You can also find a consultant who’ll charge you a flat rate.
It’s best that you ask about their fees upfront. In that way, you won’t be surprised down the road.
Do You Really Need a Retirement Advisor?
A retirement planner may not be necessary. It still depends on your situation. In that case, if you’re a Herbalife distributor, you may not necessarily need to hire an advisor.
But if you have a complex financial situation, then hiring an advisor is a good option. It doesn’t matter whether or not you have a pension or a retirement income.
You may benefit from hiring a consultant, especially if you have an outstanding debt. If you’re not comfortable managing your own investments, it’s best that you ask for the help of a consultant.
How to Evaluate Whether Or Not You’re Getting Good Advice?
It’s a good idea to work with a retirement planner. But you may wish to take some time in educating yourself.
In that way, you’ll know the right questions to ask before hiring one. It will help you make informed decisions.
It’s also ideal to start learning how to build wealth. Although there’s a significant amount of money in distributing Herbalife products, you may still end up losing money.
While deciding whether or not to hire a retirement planner, you might want to start learning how to build wealth.
Make a Plan
When making a financial plan, identify your goals and strategies to accomplish them. It has to start with a vision and a plan.
Working with a financial advisor is a good idea to help you start making a plan for building wealth. However, as mentioned, advisors work by the hour or with a flat rate. That’s why it’s an expensive option.
Choosing an advisor, however, means that you are paying for the experience.
Create a Budget
Budgeting is a key way to build your wealth. But budgeting will be useless if you don’t stick to it.
If you have a budget and stick to it, you’re likely to carry out your plan and achieve your financial goals.
It also helps you understand where your hard-earned money is going every month. It prevents behaviors that can hamper your goals.
With a budget, you can avoid overspending.
Start an Emergency Fund
When you do retire, you no longer have an income to rely on. When the refrigerator quits working, for instance, where will you get your money to repair or buy a new one?
You may think that credit cards can save you. But it will cause extra fees and costs. Plus, it has high-interest rates.
However, if you can find an appliance center that offers installment options at 0%, then that will be a great deal.
Then again, having an emergency fund is the best way to go. It protects you and your family.
You can also reap the benefits because you get to earn interest while enjoying the peace of mind of knowing that you have funding to cover any surprises that life throws at you.
Manage Your Debt
You are not alone in managing your debt. But not all debt is bad. Mortgage, for one, is good debt. It has a low-interest rate and it has wealth-building potential.
However, if you have high-interest credit card debt, expect your financial goals to be ruined. For that reason, it’s vital to create a plan on how to repay your credit card bills.
Your goal must be debt-free life when you retire.
Increase Your Earnings
Raising your income is also a vital part of building wealth. The more you earn, the more money you have to invest. If you have been earning a lot from distributing Herbalife products, then it is your best chance to start your path to building wealth.
This will give you ample time to pay down your debt, and amp your emergency fund savings before retirement.
You should save half of every income you get to secure your retirement. It enables you to improve your quality of life while ensuring that you can maintain such a life in retirement.
Get Help from a Consultant
If you are having difficulty managing your wealth as a Herbalife distributor, it’s ideal that you talk to a retirement planning consultant today. However, if your financial situation isn’t that complicated, you may skip this part.