It’s important to remember that although you hire your financial advisor as a professional to perform a specific task, your satisfaction level will be largely based on the relationship you develop. And, as with all relationships, expectations and communication play key roles. Many investors are busy, find in-person meetings burdensome and feel they’ve hired the advisor to do the work and worry for them. Others feel the need to be more involved and, perhaps, reassured with more regular interactions. In addition to striking the appropriate balance for you and your personal situation with your advisor, there are certain times when meetings are essential.
You should meet with your advisor at least once a year to reassess basics like budget, taxes and investment performance. This is the time to discuss whether you feel you are on the right track, and if there is something you could be doing better to increase your net worth in the coming 12 months.
When you’re creating or making a major change to your estate plan, you should meet with your financial advisor to make sure those plans fit in with your strategic financial planning scheme. Of course, your advisor cannot offer legal advice, but they can ensure your estate plan is proceeding in the right direction.
Significant financial event
Whether it’s coming into more money through an inheritance or promotion at work or acquiring a large debt, a significant financial event should trigger a meeting with your financial advisor. Your taxes, strategies and the structure of your portfolio may be impacted.
Major life-changing event
Your short and long-term financial planning can be altered by events such as marriage, birth of a child, divorce, loss of a job and many others.
If you are an investor with a large portfolio, it’s likely to be diversified in ways different than the average investor. If so, a quarterly review may be more appropriate than an annual one to, for example, re-evaluate underperforming assets.
Again, one size does not fit all when it comes to financial advice. One way to provide an overview as to where you are with your investments is to visit our quick reality check for your portfolio. You’ll be glad you did.
The information contained herein is based on internal research derived from various sources and does not purport to be statements of all material facts relating to the securities mentioned. The information contained herein, while not guaranteed as to the accuracy or completeness, has been obtained from sources we believe to be reliable. Opinions expressed herein are subject to change without notice.