Experts stress debt reduction before retirement
September 16, 2009 by Spencer Cameron
As the value of investment portfolios has shrunk during the financial crisis, many Americans who are nearing their retirement age may benefit from the tips provided by veteran financial advisors.
Scott Hanson and Pat McClain have more than 20 years of experience working with employees of telecommunications and utilities companies, and they say many people are reexamining their priorities these days.
"Some are intentionally choosing to simplify – to live in smaller homes, collect less stuff and drive smaller, more fuel-efficient cars," says Hanson.
"As a financial advisor, I’m pleased to see this trend," he adds.
They further stress the importance of trying to eliminate as much debt as possible, especially when approaching retirement age.
A competent advisor is also important, especially one that can offer a holistic approach to creating a sound financial and investment plan.
"Clients and their financial needs come in all shapes and sizes, and it’s essential that they receive customized advice," says McClain, adding, "one-size-fits-all may be okay for some things, but it’s a seriously flawed approach to financial planning."
The two experts add that the trend towards staying on the job past the retirement age is only partially motivated by financial reasons. Just as important is the growing desire to remain active, productive and contributing members of society.