Here’s What Retirees Are Asking Their Financial Advisors

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Financial advisor looking at stock market prices on his phone
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If you are retired or thinking about retiring soon, the recent economic volatility might have you concerned about your financial security down the road. Will your investments keep you afloat?

63% of U.S. retirees want advice on an investment strategy to withstand market volatility, according to a new report from Edward Jones Investments.

The report, which was done in conjunction with research firm Age Wave, delves into four areas for living well in retirement: health, family, purpose and finances.

The report includes a survey of 9,000 adults in the U.S. and Canada. Almost 70% of those responding said they’re unsure about what their long-term costs will be in retirement. And many people who expected to retire in the next ten years currently have reservations about walking away from their jobs due to financial security concerns. 

Retiring Soon? Here’s How to Withstand Stock Market Volatility

Money expert Clark Howard says when it comes to whether you should retire now or in the near future, a lot depends on how you plan to pay for your retirement.

“You can’t just go into a tortoiseshell and hide from the market,” Clark says. “But as a general rule, you need to have a certain amount of cash or things that are like cash.”

Clark says the key to withstanding a tough market lies in having a diverse investment portfolio. Clark says those assets could include two or more years of:

  • Cash
  • Low-risk bonds
  • CDs

The point, Clark says, is to have diverse forms of capital “so that you don’t have to sell your investments at a bad time.”

The Edward Jones report also highlights that instead of just investment advice, most people want more holistic financial guidance.

Financial Guidance vs. Investment Advice

The report says, “Among those interested in working with a financial professional, people most commonly say that the ideal role of a financial advisor would be to act as a financial guide, someone who understands their goals and helps to achieve them, as opposed to an investment advisor, who strictly makes recommendations about their financial investments.”

Read the full Edward Jones report here.

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One of the things a lot of people don’t understand is that most people who call themselves financial advisors are not fiduciaries.

“They are not working for you,” Clark says. “They are working for themselves. And they are allowed under the law to sell you things that might make them big money but not work for you. So you only want to hire someone who is a fiduciary, because it is a legal standard where they are only allowed to put you first.”

Final Thought

The bottom line is that you can insulate yourself from a rocky stock market if your investments are spread out.

Clark says the key is to have at least a couple of years of cash on hand or cash equivalents.

If you want to learn more about hiring someone to manage your money, here’s what to know about a fee-only financial advisor,

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