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Hello Reader,
Today's question is from "Denise age 64”
I worked with a financial advisor for more than 10 years and was told I was on track for retirement. I’ve since discovered that some of the projections may not have been accurate and that retirement assets were placed into annuities I didn’t fully understand. How do you recover financially when you believe you were misled or poorly advised, especially when you’re already close to retirement?
Denise, first, I'm so sorry for the loss of your husband and everything you've had to navigate financially while grieving. Losing someone you love is difficult enough without also having to question financial decisions you trusted someone else to help you make.
I can only imagine how frustrating, overwhelming, and even frightening it must feel to be approaching retirement and suddenly questioning whether the financial security you've worked so hard to build is still there.
But I also want you to know that you don't have to spend your energy blaming yourself for what you wish you'd known or done differently. You sought professional guidance because you wanted to make informed decisions about your future, and there's nothing wrong with that.
Right now, what's most important is getting a clear understanding of where you stand financially, exploring what options may be available to you, and figuring out how to move forward from here.
Here's where I would start.
1. Start by getting a clear picture of your finances
Before making any big decisions, I would start by gathering all your financial documents so you can understand exactly where your money stands today.
This includes your retirement account statements, annuity contracts, insurance policies, investment statements, and any financial projections your advisor provided over the years.
Take time to review what you own, how much you have, what fees you're paying, and whether there are any restrictions on accessing your money.
I know this may feel overwhelming, especially if some of these financial products are unfamiliar to you but you don't have to figure everything out in one sitting.
2. Get an independent second opinion
Since you're questioning the advice you've received, I would strongly recommend getting a second opinion from a qualified fiduciary financial professional who isn't affiliated with your current advisor or their company.
Have them review your retirement accounts, annuities, and previous financial projections to help you understand whether your investments are appropriate for your current circumstances.
In particular, ask them to explain the fees, surrender charges, guarantees, income benefits, and restrictions associated with your annuities.
And please don't rush to cancel or move any investments until you understand the potential financial and tax consequences. The last thing you want is to make an expensive decision while trying to correct another one.
3. Explore your options if you believe you were misled
If you believe financial information was misrepresented, important details weren't properly explained, or investments were recommended that weren't suitable for your circumstances, it's worth exploring whether you have any options for addressing what happened.
Consider speaking with an attorney who specializes in securities or financial services matters. They can help you understand whether there may be grounds for a complaint or legal action.
You can also look into filing a complaint with the appropriate financial regulator, such as FINRA, your state securities regulator, or your state insurance department, depending on the products and professionals involved.
Keep copies of your statements, emails, contracts, projections, and any communication with your advisor. These documents may be important if you decide to pursue the matter further.
There may not be a way to recover every dollar you believe you've lost, but you deserve to understand your rights and what options are available. It's also important not to wait too long to seek guidance, since deadlines may apply.
4. Rebuild your retirement plan using your current numbers
I know this may be especially difficult after spending so many years believing you were on track for retirement, but the next step is to create a realistic plan based on where you are financially today.
Start by reviewing your current retirement savings, Social Security benefits, any pension or annuity income, outstanding debts, and monthly living expenses.
You'll also want to factor in housing, healthcare, insurance and other expenses that may change as you get older.
Once you have those numbers, you can determine how much income you'll realistically need in retirement and whether your existing resources can support that amount.
If there's a gap, you'll have a clearer idea of how much you need to address and can begin exploring your options.
5. Focus on what you can still control
Being close to retirement doesn't mean you have no options left, even if your financial circumstances aren't what you expected.
Depending on your situation, you may want to consider working a little longer, increasing your retirement contributions while you're still employed, reducing certain expenses, or exploring part-time work or other ways to earn additional income.
You might also need to revisit your retirement timeline or make adjustments to some of your financial goals.
Of course, I recognize that working longer or earning additional income isn't always possible, especially when health, caregiving responsibilities, or other circumstances are involved.
The important thing is to explore what is realistic for you rather than feeling pressured to make drastic changes.
And remember, the goal isn't necessarily to replace every dollar you believe you may have lost. It's to create the strongest financial position possible with the resources and opportunities available to you.
6. Simplify your everyday money management
When you're dealing with financial uncertainty, having a simple system for managing your money can make a big difference.
Start by organizing your bills, income, expenses, debts, and financial accounts in one place so you know exactly what needs your attention.
Consider automating essential bills and other regular payments where it makes sense, and create a monthly spending plan that reflects your current financial situation.
You can also set aside a little time each month to review your statements, track your spending, and check in on your financial goals.
The idea isn't to spend hours managing your money every week. It's to create a system that helps you stay informed and organized without adding unnecessary stress to your life.
7. Stay involved in your financial decisions going forward
One thing I want to emphasize, is that you can work with a financial professional and still remain actively involved in your financial decisions.
You don't need to know everything about investing or retirement planning, but you should feel comfortable asking questions and understanding the financial products being recommended to you.
Ask about fees, risks, alternatives, potential penalties and how your advisor is compensated. If something doesn't make sense, ask for an explanation in plain language.
And if you still don't feel comfortable, it's okay to get another opinion before making a decision.
You deserve to work with professionals who take the time to explain your options and help you make informed choices about your money.
One last thing: Be careful about blaming yourself
Please don't let this experience convince you that you've failed financially or that it's too late to make meaningful changes.
You've already been through so much, and having to navigate uncertainty about your retirement on top of losing your husband is a lot to carry.
You don't have to solve everything at once. Start with gathering your documents, getting an independent review, understanding your options, and building a realistic plan for where you are today.
I do believe that having clarity about your finances can help you make more confident decisions about what comes next.
A few resources to help you get organized
Our free Organize Your Finances course can help you get your financial information in order, understand what you have, and create a simple system for staying on top of your money.
And the Clever Girl Finance "My Wealth Plan" Workbook is another great resource if you want to take a closer look at your finances, work through your goals, and create an actionable plan for moving forward.
If you’re looking for more specific accountability, working with a Clever Girl Finance coach can also be a great option.
You can start with what you know, ask for help where you need it, and take things one step at a time.
📺 On YouTube
Check out this YouTube video: You Are Not Behind — The Truth About Building Wealth in Your 30s, 40s, 50s and beyond
Be sure to tune into the Clever Girl Finance YouTube channel for more great videos!
📖 On the blog
🎧 On the podcast
Talk soon ❤️
Bola
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