Fact is 85% of Americans don't make it through retirement, i.e. end up on Medicaid according to government statistics because they don't understand fully how inflation, capital gains taxes, COLA adjustments can impact their investments, with increasing costs of standard of living. Second they don't have a full concept of how to properly invest or even how much to invest since most idiots just chase returns, having no real concept of market fluctuations, asset allocation, efficient frontier portfolio theory, dollar cost averaging, etc. Third they don't know which investment vehicles to choose, why they need to choose them, since most Americans believe only they should be the ones being paid at their jobs, yet choose the absolute cheapest internal expense ratio type mutual funds (Janus Funds for one) or investment vehicles not realizing they are buying the hack investment products with fund managers who have little experience because the fund managers aren't being paid. Finally they don't respect that it takes years, perhaps the better part of a decade of dedication, education, and knowledge to form a good financial advisor investment consultant.
I hate the Ameritrade commercials since they cheapen the industry altogether, cheapen the dedication it takes for a financial advisor to truly be formed. Truth is a good financial advisor has probably invested more time in continual education with SEC regulations, tax law changes in regards to investment or estate tax law, NASD regulations, and general market fluctuations than anyone fully realizes on a daily basis. How many people spend nearly a third of their work week learning how to become more efficient at their job. Then again no one cares how much a doctor knows until he is operating on you, so choose your financial consultant wisely it's your future and if you don't care- well you still have to live through it anyway.
My advice- if you think you can do it on your own, well you'll find out later. If you don't have advisor, then get one but not from a bank. Any financial advisor that deals in individual stocks is not an advisor but instead just a broker who does not have your best interest at heart. Finally if are within fifteen years of retirement then I would suggest sitting down with someone and ask them to show you what your portfolio will look like, what your retirement will look like, what is your investment strategy, how much capital gains or inflation impacts your retirement dollars, showing you your actual income at retirement given all these things so that your lifestyle does not change. You better have more than just a pension and a few hundred thousand to hack it out at retirement.
You do the math. Pay a financial advisor $1,000 to $1,500 a year for continual advice to develop comprehensive plans to show you exactly where you stand at retirement given inflation, medical cost increases, capital gains, distribution of investment strategies, or find out at retirement you are $300,000 short of maintaining even a remote standard of living because all you had was a 401K that you only stuck 12% in over the last 20 years or believe somehow a pension will payout enough while not having a full concept of where you need to be.
My advice- pay someone for advice, get a good financial advisor.
Creeper
Sorry I work in the industry- Financial Advisor, Comprehensive Investment Planning Specialist