How to prep for your first financial advisor meeting

By Michael Cherny | Head of Citizens Wealth Management Advisors

As a strategic partner, Michael is responsible for retaining and growing mass affluent and affluent client relationships across the U.S. Michael is a seasoned financial services leader with a proven track record of scaling wealth management organization and helping clients navigate changing circumstances.

A financial advisor can be a helpful partner and resource. They'll listen to your hopes and dreams for the near and distant future, take inventory of your financial situation and help you map out a plan to get you from point A to whatever your point B looks like. But before you begin that relationship, you'll need to have an introductory first meeting with a financial advisor. This is the chance for you to learn more about each other and determine how well you'll work together while planning for your future. So, what will you need to do before and during this first meeting?

Your initial meeting with a financial advisor is an interview opportunity for you to learn what you need to know about them before deciding to work with them. You're trying to determine whether this person offers the services you need and has the background and skills necessary to manage your assets — plus whether you match personality-wise. You're setting the stage for a long-term partnership, so finding the right professional for you is essential. Here are some helpful questions to ask:

What are your experiences and qualifications?

Ask how long they've been in the industry. You can also ask if they have any specialty designations like Certified Financial Planner® or chartered financial analyst. Beyond than just initials after a name, these indicate areas in which they have additional education, such as estate planning or life insurance. More experience is generally a good thing but ensure that their expertise is relevant to your needs.

Have you worked with people like me before?

Advisors may concentrate on serving a type of client, such as young professionals, retirees or single parents. You can often find a more ideal match if they commonly work with clients who are in your age and income range, share similar goals and have the same kinds of financial needs. You may want to ask the advisor if they have any existing clients who can be references to find out what others' experiences have been.

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Do you prepare plans, manage investments or both?

Financial advisors can have a wide variety of skills. Some will help you create a comprehensive financial plan that could cover budgeting, money management, financial security preparations, investment considerations and tax efficiency. Others may specialize more definitively in investment advice, strategy and management. Make sure what you're looking for matches up with the professional services they offer.

What's your approach to investing?

How your money is invested should be personalized to your preferences, risk tolerance, goals and needs. So you'll need to know how the advisor typically operates to ensure their philosophy matches yours. How active a role does the advisor take in determining investment allocations? What specific value are they providing you in return for the fee you're paying? Do they concentrate on specific industries or types of investments? You may want someone who aligns with your style completely, or you may find you want someone who can push you a bit out of your comfort zone and show you different ways to achieve your goals.

How will we be communicating?

Financial advising is an ongoing relationship, but every client differs on how much communication they want with their advisor. Some advisors recommend checking in yearly while others may suggest more frequent visits. Make sure you and the advisor have a plan for how often you'll meet and discuss if you each prefer to meet in person or virtually.

You'll also want to know what kind of access you'll have to the advisor — whether you can call or email versus catching up only at scheduled meetings. It's also helpful to find out if they will handle your account themselves or if others on their team will help with management.

How do you get paid?

Some advisors are compensated with a fee that's calculated as a small percentage of your portfolio while others might charge an hourly fee or a flat fee for the year or per session. You may also find advisors who earn commissions by selling investments. There are advantages and disadvantages to any fee structure, but make sure you understand payment fully before you sign on.

In addition to you getting to know the advisor, the first meeting is a chance for them to get to know you, too. A key topic to be prepared for is what you want most for your future. The best client-advisor relationships are centered around your goals, but that's only possible when those goals are clearly outlined:

• What's the order of priority for your achievements: Paying down debt? Saving for college? A comfortable retirement? Leaving a legacy? And how do you want to manage working toward multiple goals with differing timeframes?
• What specifics can you pinpoint about your goals? Will educational savings need to cover attending community college or graduating from med school? Is your ideal retirement maintaining your everyday life or funding a two-year world cruise?
• When do you want to reach your goals?
• What are your current income and expenses? How much money are you currently saving to reach your goals, and could you put aside more?
• What are your plans for the near and extended future? Do you anticipate changing jobs, getting married, moving out of state or any other major life adjustments?

The more specific you can be, the better. Before your first meeting with a financial advisor, think through your biggest hopes and dreams. Talk it over with your loved ones and consider setting aside some time for deep reflection on what your needs and wishes for the future are. No matter what you come up with, it's a good idea to have a full list of possibilities to discuss with the advisor.

After you share your goals, the financial advisor will want to get a sense of your financial situation to help you figure out how achieving them may be possible.

With that in mind, aim to gather as complete a picture as possible of your finances before the meeting, including:

• Bank account balances, including checking, savings and other deposit accounts
• Details on other investment interests and valuable assets
• Balances for any employer-sponsored retirement plans, including pension information
• Balances for any other retirement savings and products, such as IRAs or annuities
• Estimation of your Social Security benefit
• Amounts of debt, including student, car, home or personal loans
• Insurance policies and benefits, such as life, disability or long-term care
• Any estate planning in place, including wills, trusts and health care or financial proxies

Having every statement or document in hand for the first meeting is not essential, although it certainly doesn't hurt. You'll just need to be able to outline what you have so the financial advisor can have a good understanding of your current financial situation. When you get into serious planning mode at the second meeting, however, you'll want to have all the documentation ready by then.

• Ask friends and family members. Find out if anyone you know is currently working with an advisor and are satisfied with the relationship.
• Get a referral from another professional. If you work with a banker, ask if they have a connection to an advisor. You can also see if your bank offers financial advising services.
• Check with your workplace. Your employer may offer financial planning services through its retirement plan offerings. You may be able to connect with an advisor who is already handling your company benefits.
• Search industry databases and associations. The Certified Financial Planner Board, the National Association of Personal Financial Advisors and the Financial Planning Association have searchable databases of advisors who must meet specific standards to be listed.
• Meet with several advisors before deciding. The first advisor you meet may or may not be the right one. It helps to compare at least two or three to get a feel for who you want involved in your finances.

What can a financial advisor do for me?

A financial advisor can help you set your long-term financial goals, create budget and savings targets to reach these goals and manage your investments. Financial advisors may also check on your insurance coverage, assist with taxes and develop your estate plan for leaving an inheritance after you pass away.

How much money do I need to use a financial advisor?

Some advisors require you to bring a minimum amount of money to invest to use their services. Depending on the advisor, it could range from $20,000 to over $1 million. Others do not have a minimum because they charge by the hour or by the plan. You can usually work with these advisors no matter how much money you have.

When should I get a financial advisor?

Many people find it helpful to meet with a financial advisor in anticipation of or soon after major life events, like getting married, having children, or changing jobs. Your financial situation could change dramatically at those points, and you'll likely need to adjust your plan. You should also get an advisor if you have questions about your finances or simply want to make more progress toward your goals.

Are financial advisors worth it?

Financial advisors are worth it for most people. The typical person struggles with their investment performance and with reaching their long-term financial goals. Overall, most people feel more assured about their future after meeting with an advisor and creating a plan.

If you're confident in your investment and financial management skills, you might not need an ongoing advisor relationship. But it could still be worth checking in with an advisor every few years to ensure you're handling everything properly.

The first meeting with a financial advisor will set the stage for the rest of your working relationship. It should feel like a collaborative session, not one where you sit back and listen the entire time. You should walk away feeling energized and empowered about your future and its potential. If you leave a meeting feeling this way, there's a good chance you found the right fit.

Looking for the right advisor to be your partner? Learn how a Citizens Wealth Advisor can help you reach your financial goals.

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