Meeting With a Financial Advisor—7 Tips to Help You Prep

Key Takeaways

You’ve taken the step and reached out to a financial advisor. Now, your meeting is on the calendar.

But your work isn’t done. You can help get the most out of your session by prepping ahead. Gathering important information and thinking about your financial goals will help you and your advisor. It will also help you narrow your focus on what really matters and what you want to take away from the session. Below are seven tips to help you prepare.

7 Tips to Help Prepare for the Meeting

Tip 1 – Understand the Importance of the Meeting

Meeting with a financial advisor is an important step for your financial future, and it may help you to think ahead about what you want to achieve in the meeting and for your finances. What do I really want from my investments and what are my goals? These are good questions to ask yourself before you meet with an advisor.

Also, consider making your goals precise—it will help you and the advisor. There’s nothing wrong with socking money away for “someday.” However, sharing a clear and specific goal with your advisor will help them better define a path to success. What does that look like?

Your advisor can help turn your “I’m saving for someday” into “I’m saving to have a steady retirement income after I quit working.” Here are some general goals and examples of how to make them specific to you.

• Retirement: I want to quit working at age 55.

• College savings: My 12-year-old wants to become a doctor.

• New business: I want to be my own boss in five years.

• Estate plan: I want to make sure my family is secure.

Tip 2 – Bring the Right Documents

Be prepared with documents to help your advisor understand your current financial situation. These records include bank statements, investment statements (including for your 401(k) and other retirement accounts) and any insurance policies.

This will help both you and your advisor analyze your current approach and identify where there may be a need for any adjustments.

Your financial situation can often be like a jigsaw puzzle. When you look at each piece individually, the overall picture may be hard to see, but as you start setting the pieces together, then the true picture is revealed.

Tip 3 – Consider Your Portfolio Needs and Wants

Your investments should be closely aligned with specific goals. Think about how you feel about your current portfolio, and if it’s doing the job you think it should. Most people want to know if they’re invested the right way. Your advisor should help you know if your portfolio works for the specific goals you set. Below are questions to discuss with your advisor:

• Is my portfolio aligned with my long-term goals? Am I taking the appropriate amount of risk?

• Does my asset allocation allow me to sleep at night when markets are volatile?

• Is my portfolio built to address my concerns about (inflation, taxes, lasting long enough … you fill in the blank)?

Tip 4 – Discuss Current and Future Life Events

Many people turn to an advisor when something happens—positive or negative—because they realize their money needs have changed. Discussing life events with a financial professional can help you adjust for new circumstances. Even if things are status quo now, it helps to plan for the unexpected. Here are some life events that can impact your money.

• Marriage and divorce

• Family addition (birth or adoption)

• Family member illness or death

• Job change or loss

• Caring for someone else (aging parent, adult child, someone with a disability, grandchildren)

• Nearing retirement

Financial planning is a great tool that can be used to provide concrete strategies for the grey areas that the future might hold and allow you to stay confident as you navigate transitions and life changes.

Tip 5 – Take Stock of Your Plan Progress

Most financial professionals focus on planning. It’s part of their job to help you prepare for both the expected and unexpected. Knowing where you are in the planning process can set the direction for your overall financial plan.

Whatever you do, don’t shy away from this topic—even if you don’t feel good about your current status. It’s important to move forward from wherever you are. Here’s what an advisor may ask you:

• Do you have a budget?

• Do you have an emergency fund?

• How do you feel about your retirement savings progress?

• Do you have a plan for income in retirement (may depend on how far away you are)?

• Do you have a college savings plan (if needed)?

• Do you have an estate plan?

Tip 6 – Have Questions Ready to Ask Your Financial Advisor

Your advisor will ask questions to understand your situation but don’t forget to ask questions of your own.

• How are you paid? Some advisors charge an annual fee that’s a percentage (typically 1%) of how much money they manage for you. Other fee structures include:

  • Fee only – The advisor collects a fixed fee only, which could be an annual charge or an hourly rate.

  • Commission only – They collect a fee based solely on the investments or other products they sell you, such as mutual funds or insurance products.

  • Fee-based – Your advisor collects both a fixed fee and commissions for investments they sell to you.

• What is your approach to financial planning? Different advisors have different areas of expertise. Some advisors can help with investing and retirement planning, while others can help more broadly in areas of estate planning and the impact of taxes on your finances.

• How will you tailor your investment strategies to my risk tolerance? Not all investors are alike when it comes to taking risks with investments. Your advisor should measure and respect your comfort with risk and then build your portfolio accordingly.

• Are you a fiduciary financial advisor? Fiduciary financial advisors are obligated to act in your best interest. For example, a fiduciary advisor must seek the best prices and terms for any investment. Non-fiduciary financial advisors operate under a suitability standard but don’t have the same obligation. All financial consultants in American Century’s Private Client Group advisor services are fiduciaries.

Tip 7 – Set Clear Expectations and Establish Next Steps

After your meeting, it’s important that you walk away understanding your advisor’s role and responsibilities. Some advisors only work with investments, while others take a broader role for clients that includes financial planning, estate planning and helping family members.

Also, establish in the meeting what communication will look like and how frequently you’ll hear from the advisor. Do you prefer to speak by phone or receive email updates? If you have a quick question or concern, can you call directly or do you need to set up an appointment?

Most advisors schedule annual check-ins with clients, but you may want to chat more frequently.

At the end of your first meeting, your advisor should review the information you shared and provide a timeline to present you with a comprehensive financial plan based on your conversation. You should set the timing of your first follow-up meeting. The advisor may also share how you can track your progress on your own, including digital tools and resources through online account access.

Be Ready for a More Productive Meeting

Following these tips can help you realize the things you most want to accomplish during your session with a financial advisor. Write them down and have them handy at your meeting. Even better, complete our Financial Session Guide  and email it to your advisor before your appointment. It will help your consultant prepare for the meeting too.