What to Expect When Working with a Financial Advisor

Working with a financial advisor is a big deal. In the same way a good doctor may know key aspects of your personal health, a good financial advisor will know the crucial aspects of your financial situation–all to help you improve your financial health and retirement longevity. That’s why it’s important to know what to expect when working with a financial advisor and understand where and how your advisor can improve your finances.

Understanding Your Financial Picture

The first step when you meet with most financial advisors is for them to get an accurate picture of your financial life. Before trying to sell you financial products, a good advisor may ask you questions about your asset levels and debts outstanding, future financial obligations, retirement expectations, and income, among many other factors. While they won’t ask about every little detail in the very first meeting, they need to know key factors that play into where your money is going and what your money is doing.

Digesting Your Savings, Investment, and Income Plans or Opportunities

They’ll then probably be interested in getting a sense of how you’ve saved, the retirement investment options you’ve utilized, and what income options you’re thinking about and should consider as well. Not only that, but they’ll likely consider tax implications, expected budgets, and costs along your retirement timeline and consider your estate and wealth transfer plan as a part of your overall financial situation and strategy.

Let’s take investing as an example of one aspect an advisor may focus on with you. They’ll look at how you’re currently invested, how you want to invest, and how you should invest. They may ask: Are you a more careful investor? Are you willing to take big risks? Does your current strategy match what you should be doing, given the financial goals you relayed to the advisor? These questions help them get that picture of where you may need the most guidance and what tools and options may benefit you.

As a part of that, your tax situation is also something that will likely be discussed in relation to many other parts of your financial strategy, including investment strategy. When it comes to financial planning, much like the human body, many aspects of your financial life are interconnected in unique ways.

A Financial Advisor Puts the Pieces Together

Ultimately, all these questions will allow an advisor to understand how the breadth and full scope of your financial timeline can be better strategized to meet your goals. Getting the most out of your savings is the best way to do justice to all that hard work you put in while saving for your golden years.