Some financial advisors have failed to take advantage of such things as the Age 55 IRS rule. This rule allows holders of qualified plans, such as a 401(k), to take withdrawals at age 55 without a 10 percent penalty if the holder leaves his job at that time. The person does not have to wait until age 59.5 to take withdrawals without penalty.
These are a few of the areas a financial advisor can address when reviewing a client’s investments and insurance, says Kemp. An advisor can learn what to look for by taking classes to earn different certifications; however, some ideas have to be sought out by the advisor.
For instance, a tax expert can help the advisor go through a 1040 tax return form line by line and explore the nuances of each line. Each little issue that saves a client time or money can be of value to client, he says.