Maybe your financial situation should be more complicated.
As seen in The Oakland Press January 18th, 2026 |
Maybe your financial situation should be more complicated.by Ken Morris During a casual conversation with a friend last fall, he mentioned his approaching retirement. He said his circumstances were “not complicated enough” to warrant hiring a financial advisor. This month, a friend who was also discussing retirement, voiced a similar sentiment. He wasn’t planning to discuss his situation with a financial professional either. His circumstances were also “not complicated.” Both defined “not complicated” as having a sizable balance in their 401(k) and no debt. And both were approaching retirement with confidence. But should they have been? I don’t want to diminish their accomplishments. Over the course of their working careers, they educated their children, lived a comfortable lifestyle and fed their retirement programs year in year out, like hungry teenagers. Anyone who has reached this plateau deserves kudos for a job well done. However, I respectfully disagree with their view that considering their situation uncomplicated does not mean there’s no reason to consult a professional advisor. You may feel that your circumstances are simple and basic. But the reality is that we live in a complex, fast paced world. Very few things in this world are simple. In fact, many “simple” things can be overly complex. Have you ever seen an instant replay during an NFL game? The referees debate, consult the press box and eventually call it an incomplete pass. Instant was hardly the right adjective. Complexity goes way beyond sports. Take Social Security, especially when both spouses had working careers. When is the optimum time for each to begin drawing income? May sound easy, but the answer can be quite complex. Many people that retire or change jobs leave their retirement nest egg right where it is. It’s an easy choice, but is it the best? I believe it’s better to do some research and find out what’s in your best long-term interest. Most advisors are proponents of diversification. A portfolio with the best domestic, global and stock funds, along with a domestic bond fund. But when designing that portfolio, a good advisor would never recommend that individual funds all come from the same financial firm. It’s nearly impossible for one firm to have the best fund in each category. Moving into an IRA often provides multiple invest choices from a menu of multiple fund managers. Proper research can be time consuming, but it’s an advisor’s job to weigh performance, cost and fees and measure risk to seek the optimum outcome. Simple? Not likely. Worth it? Quite possibly. In recent years, most people have been better off taking the standard deduction on their tax returns. Consequently, most households pay little attention to the income tax code. If you’re retired and financially comfortable, is there any reason you shouldn’t tap your 401(k) or IRA before it’s required at age 73? Maybe. A qualified advisor could help you determine if a partial conversion into a Roth IRA might be a smarter move. Again, a complex question even for a simple portfolio. Your financial responsibilities don’t end with retirement. You can take the simple route and only do what Uncle Sam tells you. Or you can take the time to review your circumstances with a financial advisor. We live in a world where attention to detail is critical. And where there’s very little that isn’t complex |
