Retirement: Put Your Broker To Work!

For the millions of Americans who work with stock brokers, financial advisors, life insurance salesmen or CPAs who provide more than just tax-prep, it's time to put your professional to work!I thought about this after meeting this lovely southern belle at the Museum of Natural History. She was worried about her retirement but had not yet asked her advisor to help out.

Ladies and Gentlemen, after being in the advice-giving business for nearly fifteen years, here's what you need to know: part of the reason you pay your money guy/gal is for peace of mind. Yes, performance matters, but lots of professionals can deliver that much. Very few devote the time and energy to keeping you sane.

When you do get those numbers, be sure to ask your pro his/her assumptions in the analysis. Here's what I recommend:

• Inflation assumption = 4.5 percent
• Rate of return before and after retirement: Consider your risk assessment (please tell me that you have taken a risk assessment test!) and err on the side of being conservative. The maximum should use is 6-7 percent before retirement and 4-5% after
• Life Expectancy - if you're younger than 50, use 95, if you're older than 50, use 90

Jill Schlesinger

Jill Schlesinger, CFP® is the Emmy-nominated business analyst for CBS News. She covers the economy, markets, investing and anything else with a dollar sign on TV, radio (including her nationally syndicated radio show), the web and her blog, "Jill on Money." Prior to her second career at CBS, Jill spent 14 years as the co-owner and chief investment officer for an independent investment advisory firm. She began her career as a self-employed options trader on the Commodities Exchange of New York, following her graduation from Brown University.

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