Meeting with a financial advisor can be intimidating to many people especially if you feel like youre barely treading water in the current economy. If youre serious about planning your financial future, not just your retirement, its an important part of the process of turning your financial dreams into financial realities for yourself and for your family.
What Should You Bring to Your First Meeting,
Most financial advisors will have a list of items they require. Theyll usually send it to you through email or regular mail when you set up your initial appointment. Among the items you should expect to bring along are the following:
* Past tax returns and W-2 forms. Some advisors will want as many as three years worth of documentation
* Pay stubs
* Monthly household budget and income
* Loan information
* List of assets
* Investment records
* Retirement account information
* Your partner. In order to be successful this must be a team effort
While it may not be requested of the financial advisor youre working with, you should also consider jotting down a list of your short- and long-term financial goals. Having a list in place lets your financial advisor know that you have put a little thought into this, and it helps you to put your goals in writing and to see them in black and white.
What Questions Should You Expect from Your Financial Advisor,
Your financial advisor is going to ask a wide range of questions to try to get a handle on your current and future financial states, your expectations, the plans you have in place, and your goals for the future. He or she will also want to know if everyone is on board with the idea of planning for your financial future and how much support youre going to get in your efforts.
Keep in mind that while not every financial advisor or planner is right for your needs, you may not be right for the way every planner works. Youre not the only doing the assessing in this meeting.
What Questions Should You Ask Your Financial Advisor,
Before you throw your hat in with a specific financial advisor, there are two questions, at the very least, you need to ask them.
1. Are you fiduciary,
This question essentially asks if the financial planner is bound to represent your interests or if he (most are male) is acting on his own behalf instead. The bottom line is that only fiduciary financial planners are obliged to make recommendations that are in your best interests regardless of their own.
2. How are you paid,
Different financial planners and advisors will have different means of generating personal income. Some charge hourly rates, some bill by the project, some work for a percentage of your portfolio, or some combination of these. Others generate income from commissions when they sell you services. Understanding how they get paid helps you understand their motivation (or lack thereof in some cases) to work hard for you.
Knowing what to expect not only takes some of the mystery out of the process, but it also helps to prepare you for what a good experience with a financial advisor is like. The more prepared you are, the faster youll be able to get to work turning plans for your financial future into actions.