Best Financial Planning Questions to Ask an Advisor

The financial advisor you choose could determine whether you meet your retirement goals, so you want to know you’re hiring the right person for the job. Even after selecting an advisor you trust, asking questions about how they’re managing your money could lead to greater financial success down the road.

No matter where you are in your client-advisor relationship, here are some key questions you should be asking.

New Client-Advisor Relationships

What credentials do you have?

You’ve probably noticed the long list of acronyms that follow an advisor’s name. While it’s important to take the time to understand them all, look out for the Chartered Financial Analyst® designation, and the CERTIFIED FINANCIAL PLANNER™ certification in particular. These are only awarded to individuals after the most rigorous education and training requirements.

Are you a fiduciary?

A fiduciary is someone who is legally bound to work in your best interest. Non-fiduciaries, on the other hand, may offer suitable products or services, but they may not be the best, most cost-effective solutions for you.

What types of clients do you work with?

Financial advisors often work with specific types of clients, such as high-net-worth individuals or long-term investors. Whatever your financial situation, make sure your financial goals are in line with the firm’s financial planning and investment philosophies.

Click here for a complete list of important questions we believe you should ask any prospective financial advisor.

Ongoing Client-Advisor Relationships

Once you’ve found your financial advisor, you’ll need to meet at least once a year to review the status of your financial plan. Most advisors lead the conversation, but come ready with your own list of questions. The more you ask, the more likely you are to make the best financial decisions.

Is my investment portfolio performing well?

If investments are a key factor in your retirement plan, you want to regularly check in on your portfolio’s performance. If you’re not comfortable with your current risk level or your portfolio’s performance isn’t aligned with your expectations, talk to your advisor about your current strategy.

Am I on track to reach my goals?

The sooner you can resolve problems with your retirement plan, the better your outlook will be, which is why you and your advisor should regularly discuss what progress has been made towards your goals. If you’re not on track, they should be able to identify and correct any issues or weak points.

Do I need to make adjustments based on recent life changes?

From marriages to job changes, life events can have a huge impact on your financial plan. If you’ve experienced or are expecting a significant change, consider whether your goals are different too. Once you have a clear understanding of what you’d like to achieve, your advisor can help you create a plan to get there.

How can I minimize my taxes this year?

Minimizing your tax burden is one of the keys to boosting your retirement savings, and your advisor should be able to give you specific tax-saving strategies that align with your overall financial goals, such as how to disperse your assets across different accounts for maximum tax efficiency.

Could market changes impact my strategy?

A turbulent market can feel concerning, so ask your advisor how recent changes may affect your returns. While short-term hurdles tend to smooth out over time, an advisor is there to reassure you that your asset allocation is still appropriate—and make changes if it’s not.

At Ironwood Wealth Management, we combine our expertise and holistic financial planning to help our clients achieve their goals. Reach out today with any questions about your unique financial situation and discover how we can exceed your needs.