NEW YORK (MainStreet) – Financial advisers come in all different shapes and sizes, and there’s no shortage of them in the U.S. Truth be told, it’s one of the rare “high growth” careers tracked by the federal government.
Currently there are well over 200,000 financial planners operating in the U.S., according to the Bureau of Labor Statistics. and the financial advisory market is expected to grow 30% by 2018.
Perhaps the most valuable type of financial adviser is the pre-emptive one who plans for unexpected financial costs and factors them into your retirement savings plan. Since such costs can total in the thousands of dollars, you better hope your financial planner accounts for those unforeseen financial events.
A recent MetLife (Stock Quote: MET) study, “The MetLife Study of Thinking About Retirement in Uncertain Times,” warned that while Americans may be preparing for as comfortable a retirement as they can, one thing they’re ignoring (at their peril) is planning for events that can trip up the best laid retirement plans.
The good news is that it’s not too late to adjust your financial plan to accommodate hidden landmines along the path to your golden years, but you might need the right bank or adviser to get the job done.
MetLife gives some examples of unanticipated scenarios:
- Being forced into early retirment due to health issues or losing a job.
- Retiring later for financial reasons.
- Having only tenuous health care coverage and risking high long-term care costs.
- The vagaries of the stock market.
- Unexpected expenses for health care, housing, family support or other emergencies. MetLife estimates that such scenarios can be a one-time or ongoing expense for six months or longer, and may cost anywhere from $6,700 to $8,300 for each occurrence.
It’s kind of tricky, but Met Life encourages investors to actually expect such events.
“We found that actively preparing for the surprises that inevitably come our way is the most successful approach to retirement,” says Sandra Timmermann, director of the MetLife Mature Market Institute. “Knowing you will have guaranteed income sources available and access to emergency funds is key.”