Questions to Prepare Before Your First Meeting with a Financial Advisor
When you first meet with a financial advisor, there are several questions that will need to be answered before you turn over the management of your finances. This includes questions to ask yourself as well as those you should ask your potential advisor. Your financial planner will need to know what your financial needs and goals are in order to help you pursue them, so clarity is important for both of you.
Questions to Ask Yourself
Before your first meeting, write down the answers to these questions:
What are my short term financial goals? (Establish an emergency fund, college fund(s), debt paydown)
What are my long term financial goals? (Retirement, pay off mortgage, build wealth)
What is my financial personality? (Play it safe, risk-taker, a little of both)
What are my priorities?
What do I want from my financial advisor?
What does my dream retirement look like?
Do I plan to work in retirement?
Who are my beneficiaries?
Questions to Ask Your Financial Advisor/Wealth Manager
Once you’ve established what your goals are and what you want from your financial advisor, there are several important questions you should ask a potential advisor. Consider your first meeting as an interview, and be prepared to ask the following questions:
Are you a fiduciary?
What professional credentials/ qualifications do you have?
How are you compensated?
What kind of communication can I expect from you, and how often?
What are my all-in costs?
What is your investment philosophy? It’s important to be on the same page here.
How will you measure and evaluate the performance of my investments?
Questions Great Financial Advisors Ask
Just as you will have questions for your financial advisor, he or she will have some for you beyond the obvious one of what you want to achieve financially. There is nothing more personal than our finances, and you should expect to discuss such personal matters as what keeps you up at night, who and what is important to you and why, and what you want to do with the rest of your life. Our finances dictate our lifestyles, so questions surrounding what large purchases you’re thinking of making, what your last and/ or next vacation will be, and what your retirement plans are, are not uncommon when meeting with a financial advisor for the first time. Your advisor needs to get a clear picture of what is important to you, where you are now, if you’re accomplishing your financial goals, and where you want to go next if he or she is to do a good job of helping you work to reach your financial goals and enjoy the journey along the way.
Documentation You Will Need
Once hired, your financial advisor might ask you to bring several pieces of documentation to your initial meeting, as he or she won’t be able to get started or give you detailed information about fees, processes, and expectations without an accurate picture of your financial situation. Some of the documents you may be requested to bring include:
Your budget/ current financial plan
Tax returns for the past two to three years
Details/ statements for any current investments
Insurance policies
List of/ statements for mortgage and any other debt you currently owe
Employer benefits statement
Earnings/ profit and loss statements from any businesses you own
After you settle on who your financial advisor will be, you should have a clear understanding of what was discussed and what your next steps should be. Don’t commit to an individual you’re not comfortable with, or a plan you don’t understand. It’s never too soon or too late to start investing in your future, but it’s important to be comfortable with the person and the plan you choose for your financial management.
Dodds Wealth Management Group team members are available in the Denver and Colorado Springs area to help create a customized financial plan just for you. Contact us today to learn more about our financial planning services and how you can gain confidence about your financial future.
Andrew T. Dodds, CFP ® - Founder and Wealth Advisor
The information provided here is for general information only and should not be considered an individualized recommendation or personalized investment advice.