Financial planning has become a much-discussed topic recently as people have become more aware of its importance. If you want a secure financial future, you will need the help and services of a financial advisor. They can help you make informed decisions regarding your investments, insurance, taxes, estate planning, or anything related to finance.
A common question clients may ask themselves is how often should you meet with your financial advisor? The answer is based on the type of investor you are, your situation, and your goals. Some may need to meet with their advisor regularly or only need an annual checkup.
Take a closer look at how often and when you should meet with your financial advisor.
How Often Should You Meet
Meeting with your financial advisor at least once a year to review your portfolio’s performance and discuss your investment goals is a good rule of thumb. However, it is important to know there are different types of financial planning services, advisors and clients. Depending on the type of advisor and the level of complexity of your financial situation, the frequency of your meetings can vary.
For example, your meetings may be more frequent if you have a retirement account or a comprehensive financial plan. On the other hand, if you have a simple portfolio, you may not need to check in with your advisor as often. It’s important to understand that each financial advisor may have their preferred meeting schedule or follow-up intervals.
You may want to consider meeting with your financial advisor more often if you are an active investor. If you constantly change your investments, have stocks you want to sell or buy, or want to rebalance your portfolio, it is best to consult your advisor regularly. Active investors may choose to meet with investment advisors every quarter or even more frequently, depending on the performance of their investments.
When Should You Meet With Your Financial Advisor or Financial Planner?
Some financial advisors may tell you there are specific instances when you should plan to meet with them so they can help you make informed decisions that align with your financial goals. So, when should you seek an advisor’s financial advice?
Scheduling a first meeting with a financial advisor is the perfect opportunity for you to get to know your advisor and for them to understand your financial situation, goals, and expectations. During this meeting, you can ask your potential advisor questions. Or, if you’re already certain about the financial advisor you’re working with, your advisor will gather all the necessary information about your current economic status, risk tolerance, and investment goals. With this feedback, they can help you create a personalized financial plan that caters to your need or assist you with retirement planning needs.
Meeting with your financial advisor when a major life event or a life change happens is another opportunity to meet with your advisor. These changes may include getting married, starting a family, or switching jobs. Life changes can impact your financial affairs, and it’s vital to keep your advisor informed so that they can adjust your plan accordingly. A financial advisor will be able to review your current plan and make necessary changes to ensure your financial goals align with your changing lifestyle.
Annual Financial Check-ups
As previously stated, meeting with your certified financial planner at least once a year is a great way to review your financial plan and ensure you stay on track with your goals. Your financial advisor can help you evaluate your portfolio and discuss any necessary adjustments. Additionally, they can help to identify any changes in your financial situation or goals and offer recommendations to make the necessary adjustments.
Market volatility can have an enormous impact on your investment portfolio. Meeting with your financial advisor when significant changes occur in the market can have benefits. Most financial advisors will provide investment advice or insights into market trends. A good advisor may recommend adjustments or diversification to ensure your investment portfolio remains strong and mitigate the chances of significant losses.
Before Making Large Purchases
Before making significant purchases, like buying a home or a car, it’s a good idea to consult with your financial advisor. They can help ensure you can afford the large purchase without damaging your financial goals. They can also offer professional financial help and guidance on when to make a large purchase and suggest strategies like saving for a down payment, acquiring a loan, etc.
If you have surplus money, you may consider putting it to work rather than leaving it in a bank account. And while jumping into any opportunity to spend money that presents itself may seem like a solid plan, it can be a costly mistake. Meeting with a financial advisor can help you create a comprehensive investment strategy that aligns with your long-term financial goals while also educating you on options to maximize investment returns. A good wealth manager can also offer investment advice to ensure you take the best steps to maximize your excess dollars.
Nearing Retirement Age
Another great time to schedule is when you are nearing retirement age. This is because your financial goals and priorities may change significantly. A financial professional can guide you through your complicated social security questions, answer investment and tax management questions during retirement, and help create a comprehensive plan to manage your post-retirement income.
The Bottom Line
A face-to-face meeting is one of the best ways to seek advice from your advisor. So if you find yourself asking, how often should I meet with my financial advisor? The answer depends on your financial circumstances and goals, your communication style, and the type of investor you are. There is no “one size fits all” answer to this question.
And while choosing the best wealth management firm for your needs can be intimidating, it’s a good idea to discuss how often your potential advisor or current advisor recommends you meet with them. After all, working with financial advisors or financial planners can be beneficial in many ways. The right advisor can help you with debt and money management, assist with major life events, and assess your retirement plan’s overall health.
Investing in your future starts with finding the right financial advisor. By working closely with them and keeping open communication with financial professionals, you can feel confident your financial needs are being met and that you’re reaching your financial goals.