Your annual review with your financial advisor is not just a routine check-up; it’s a strategic deep-dive into your financial well-being and future aspirations. In this blog, we equip you with essential questions to bring to your meeting, ensuring you maximize this opportunity to align your financial plan with your life’s evolving tapestry.
Preparing for Your Meeting
Before your annual review, ensure you’ve gathered all relevant financial documents, including investment statements, retirement savings, debts, and any significant changes to your income. Take some time to reflect on any life changes, such as marriage, children, or career shifts, as these can impact your financial goals and strategies for the coming year.
Key Questions to Ask Your Advisor
In addition to your financial records, come equipped with these important questions to help evaluate the effectiveness of your financial strategy.
How is my portfolio performing?
Begin by understanding the overall performance of your investment accounts. Ask about the return on your portfolio compared to benchmarks and discuss any areas where performance has differed significantly from expectations.
How has my net worth changed?
Understanding the evolution of your net worth over the past year provides crucial insight into your overall financial health. Ask your advisor for a detailed breakdown of your assets and liabilities. This will help you identify growth areas, such as increased investment values or reduced debts, and any areas that might need attention. Discuss strategies for improving your net worth, including ways to enhance asset growth or reduce liabilities.
How well am I protecting my income?
You work hard for your income, so you want to ensure you’re effectively safeguarding it. Discuss strategies for protecting your income sources. This could include reviewing your insurance policies, emergency funds, and any income diversification strategies you’ve employed.
Are we on track to meet my financial goals?
The end of year is a perfect time to assess whether you are on course to meet your short-term and long-term financial objectives, be it retirement planning, saving for a child’s education, or purchasing a home. Ask your advisor to provide a detailed analysis of your progress and discuss any necessary changes to ensure you stay on track.
How are my investments aligned with market changes?
Markets are dynamic, and your portfolio needs to adapt to any changes. Inquire about how recent market trends have affected your investments and if any adjustments are required in order to stay aligned with your goals. To future-proof your investment strategy, explore how market changes are anticipated to evolve and what contingency plans are in place for different market scenarios.
Don’t Forget These Overlooked Areas
Once you’ve covered the fundamentals, dive into some often-neglected yet crucial aspects of your financial plan.
How are new tax laws affecting me?
Tax laws can (and do) change frequently, impacting your investments and overall financial situation. Ask your advisor how recent tax changes affect your portfolio and if there are any new opportunities for tax savings or deferrals. For example, fluctuations in tax rates from year to year can influence your financial planning, particularly regarding retirement distributions and investment income.
How much risk is appropriate for me right now?
Your life circumstances, financial goals, and market conditions constantly evolve, so your risk tolerance will likely change, too. Discuss whether your current risk level is appropriate and if adjustments are needed to stay aligned with your comfort level and objectives.
Are there any other services available to me?
Financial advisors often offer a range of services beyond investment management, such as estate planning, insurance and Medicare assistance, and retirement planning. Inquire about how they can offer support in these areas to take full advantage of their expertise. It’s common for people to focus solely on investments, overlooking other crucial areas where advisors can provide valuable guidance.
Get the answers to all of your questions with our personalized financial planning services. Reach out to us today to schedule your review and begin taking control of your financial future.
