Investing for retirement for Realtors®

As a Realtor®, planning for retirement can be a challenge.

Mark Fried, president of TFG Wealth Management, LLC and author of Road Rules for Retirement, is an investment advisor representative, a chartered retirement planning counselor and an insurance professional, who is offering some tips on investing for Realtors®.

Fried recommends working with a financial planner to ensure your investments are sound. But be careful who you choose. “When a planner tells you it won’t cost them anything, simple logic dictates this is impossible. Who is paying the salaries, rent, benefits etc. for the planner? There is no free lunch. Don’t be fooled, even if you don’t see the fee or commission, it is coming from your money either through direct costs or reduced benefits.”

“It is very important to keep in mind that there is only so much profit in a financial product that pays a commission. The higher the commission, the less benefits available for the investor. In the end, the investor pays,” Fried added.

But Fried also warned to only pay for what you need. “The more riders or extras put on an investment, the more it costs and typically higher the commission. While higher-rated investments are not necessarily better than others, they typically have lower cost structures and commissions.”

There is also not a “one-size-fits-all” solution for investments. Fried said to be cautious of planners that only have one solution or product. Additionally, all investments have at least one negative aspect, he said make sure you’re aware of the pros and cons of what decisions you’re making. And your planner should be upfront with you.