Financial Advice for an Upcoming Move

Question: “I’m looking for financial advice for a significant transition coming up. As an active-duty military member nearing retirement, I’m currently paying off a mortgage on a rental property and considering selling it, as it seems like a good move. When searching for an advisor, should I focus on someone with expertise in military pensions and the California real estate market? Or can I approach a more general, experienced advisor? Would you be able to help someone in my situation?”

Answer: It’s definitely a good idea to look for a fiduciary financial planner who understands the needs of military personnel and has knowledge of California’s real estate landscape. You’re looking for someone who really gets the specifics. Perhaps you could start by exploring the Military Financial Advisors Association. They focus on providing services to military and veteran families and, importantly, understand the unique benefits tied to military service.

“Finding someone well-versed in military benefits is crucial. Decisions regarding options like Servicemember Group Life Insurance (SGLI) and survivor benefit programs are pivotal,” suggests Mike Hunsberger, a certified financial planner with Next Mission Financial Planning. This specialized knowledge can make a real difference.

It’s also wise to keep certain factors in mind when selecting a professional. Look for someone who charges fees only, avoiding potential conflicts of interest from third-party payments or high-commission products. This is crucial, notes Alonso Rodríguez Segarra, a certified financial planner at Advice Financial.

In terms of specialization, working with a CFP who is focused on retirement can be particularly advantageous. They generally charge based on assets under management, typically around 1%, or they may bill hourly rates between $200 and $500. Project-based fees can range from $1,500 to $7,500. These CFPs should have met rigorous educational and experiential qualifications, which is important for ensuring they can uphold fiduciary responsibilities.

Now, finding someone who ticks all these boxes might not be easy, which is why doing some research is essential. And if you’re selling that rental property, consider collaborating with an accountant. They can help navigate depreciation recovery and tax reporting. Combining insights from financial advisors and accountants can lead to better strategies for reducing tax implications from your property’s sale, according to Mark Humphries of Sentinel Financial Planning.

Note: If you’re having issues with your current financial planner or are considering a new one, reaching out for guidance can be beneficial.

Question has been edited for brevity and clarity. By submitting your question, you agree to have it published anonymously.