Meeting with a Financial Advisor: What to Bring and Questions to Ask

If you’re meeting with a financial advisor, you want to make the most of your time – and theirs. That’s why it’s essential to prepare for the meeting in advance by knowing your goals, the right questions to ask, and what to bring to the meeting. One productive meeting with an advisor can really go a long way for your financial well-being!

Keep reading to learn everything you need to know about your first meeting with a financial advisor and how to get prepared before the meeting.

When Do I Need a Financial Advisor?

While anyone and everyone can benefit from consulting a financial advisor, there are some situations in which it is especially important. Some people may only need to meet with an advisor one time to create a strategy, while others may need ongoing financial advice. Here are some of the most common reasons to see a financial advisor.

Major life events

If you just got married, graduated college, or started a family – or are planning to do any of these things – it can be really helpful to consult a financial advisor. These events will cause you to reevaluate your financial situation, and an advisor can help you stay on track, create a plan, and manage your finances during these life events.

Lack of financial experience

If you have no idea how to budget, save, or invest, hiring a professional can go a long way. Financial advisors are there to help educate you on different financial options, the best strategies, and decide which options are right for you – they can also create a personalized financial plan that you can follow moving forward.

Strategy development

For those with big financial goals, like buying a house, saving for retirement, or being financially independent, a financial advisor can help you hone in on these goals and create a plan for achieving them. This can be extremely helpful if you know where you want to go but aren’t exactly sure of the best way to get there.

How To Find a Good Financial Advisor

Doing your research and vetting advisors can help you build confidence before the first meeting. You can start with form ADV by visiting the Investment Advisor Public Disclosure site – advisors use this to register with the SEC, or Securities Exchange Commission.

With this form, you can research more about the advisor’s business – you’ll learn more about their business practices, employees, clients, affiliations, and disciplinary events related to the advisor or employees. You can also get a better understanding of the firm’s services, fees and compensation, and conflicts of interest.

Another way to learn about their business is on their website – check to make sure their website information aligns with the information on the regulatory sites. If you find conflicting information, write down any questions or concerns that arise.

Lastly, check the advisor’s business or personal social media accounts to get an idea of their values, personality, and education. If you know anyone who knows them or has worked with them, reach out and see what their experience was with this person.

What To Expect From Your First Meeting With a Financial Advisor

So, what should you expect the first time you meet with your advisor? The answer is, it depends. Every advisor has a different approach, but the first meeting will likely center around getting to know each other, your goals, and your current financial situation.

Many advisors will have the first meeting in their office, but some may have them over Zoom or another type of video call. Bring your spouse or partner along if you have combined finances or if you will be discussing joint goals.

As soon as you arrive, you can expect the office staff to guide you to the conference room and offer you a beverage – pay attention to how friendly and helpful they are (you’ll be working with them, too!).

Preparing for the Meeting – What to Bring

Before the meeting, you’ll need to gather essential information and financial documents to make the most of your time with the advisor. Here’s what you need to bring with you.

Income statements: Pay stubs, W2s, or 1099 if you are a freelancer.
Federal and state tax returns from recent years.
Debt: This includes your mortgage, student loans, credit cards, and other loans.
Life insurance policies
Financial statements like 401(k) and IRAs, investment accounts, bank statements, CDs, assets, and annuities.
Your monthly budget with typical expenses.
Your plan for the unexpected (if you have one). This includes events like having another child, unemployment, or a chronic illness.
A summary of your investments, major purchases, and financial needs.
Short-term goals: This could include expanding your family, planning a vacation, buying a home or car, starting a business, or going back to school.
Long-term goals: This might include saving for your child’s higher education, upgrading to a larger home, or paying for living expenses for your parents in old age.
Personal life goals: Think about when you want to retire and what you want to do in retirement.

As you can see, this is a lot of information to gather! When you start gathering documents, put all of them in one place like a folder or binder for easy access.

Having all of this information for your advisor will help paint an accurate picture of your current financial situation and long-term goals, helping them serve you better and create a plan that actually works for your current situation and future goals and dreams.

How Should the Advisor Begin the Meeting?

Usually, a financial advisor will begin the first meeting by establishing rapport with their customers. They may ask you about your life, work, and family before moving on to financial topics, and they will also introduce themselves and share a bit about their work process and approach to financial planning.

The first thing they will do after getting to know you is gather more information about your financial goals – why you decided to meet with them, what your goals are in the short term, and where you see yourself far into the future. Once they understand your financial goals, they can start creating a functional plan so you can reach them in a certain amount of time.

In this first meeting, each party needs to set expectations with the other. For example, if you envision your financial advisor taking complete control of your investment portfolio, with you being hands-off, you should share that with them. The advisor should also communicate what they expect from you – which could be to follow their guidance, commit to their plan, and communicate progress frequently.

You should also discuss what success looks like with your advisor. How will you know if their advice is working? Do you have a specific benchmark goal in mind within a certain period of time? Setting goals with your advisor will determine if they are doing their job correctly and if you are using their guidance to your advantage.

Questions to Ask Your Financial Advisor

When first meeting with your financial advisor, you should focus on making sure they are the right fit for you and your goals, that they are knowledgeable, and that they won’t be trying to sell products or services just to get a commission.

Here are some of the key questions to ask:

What is your approach to financial planning? Do you want someone who has the heart of a teacher? Or do you want an advisor to create a strict plan that you can start following immediately? Each financial advisor has a different approach.
How do you get paid? Some advisors work off of a fee-only structure, in which they charge their clients a flat fee or asset-based fee for their services. Others also make commissions off of the products they sell – you want to avoid this type of advisor since there is a conflict of interest. Your advisor should be recommending products based on your needs, not because they are trying to make more money.
Can you help me prioritize my financial goals? You want an advisor who will be honest, but also believe in your goals just as much as you do!

You should also ask questions based on your particular situation and goals. For example, if you want to invest more for retirement, plan to ask questions about different investment options, how much you should be saving for retirement, and other related questions.

If you need help understanding something during the meeting, feel free to speak up! Your advisor’s job is to answer your questions, no matter how trivial.

Your advisor may also have many questions for you – be prepared to discuss the following:

How often do you want to meet?
What’s your tolerance level for risk?
Are there types of investments you are interested in?
Do you prefer a guided approach, or are you more of a hands-on investor?
How often do you like to communicate and how?
How much do you want to be involved in your financial decisions?

What To Do After the Meeting

After your first meeting with the advisor, it’s time to decide whether or not you want to work with this person long-term. Hopefully, they gave you a sense of expertise, trustworthiness, and communication skills during the meeting, and if not, then it may be time to cut ties.

Think about how well they listened to your concerns and addressed them. Did their advice align with your goals and comfort level?

Consider your current financial situation and where you want to be in the future, then think about the action items the advisor recommended. Do they seem doable? Can you commit to the plan? Are there ways to track financial progress?

If you brought your partner or spouse with you to the meeting, ask them how they felt about the advisor’s approach. They may have insight that you wouldn’t have considered otherwise.

You should also consider how to contact your financial advisor if you have questions, if they are readily available, and when they would like to meet with you next. As you consider all of these elements, it will become clear whether you should stick with this person or keep shopping for other options.

It’s Never Too Late To Start

Many people avoid or put off seeing a financial advisor because they feel ashamed of how late they are starting to work on their financial health. However, keep in mind that most people don’t start this process at the perfect moment. Between careers, kids, and unforeseen events, it’s rare to be in perfect financial condition or start at the perfect moment.

However, this is where an advisor comes into play – no matter how late in life you are starting this process, they can help you set goals, make moves, and hold you accountable.

You may also feel unprepared because of a lack of financial literacy, but remember that is the reason you are seeing an advisor! Not only will they help you with your financial situation, but they are also there to teach you the basics.

Now that you are brave enough to make the appointment, stay brave by asking your advisor questions during the meeting if you don’t understand something, even if it’s a basic concept! Keep asking questions until you fully understand the topic – this is why your advisor is getting paid the big bucks!

Conclusion

You might feel a little nervous when meeting with a financial advisor for the first time, but there’s nothing to worry about! It is this person’s job to address your monetary concerns in a judgment-free manner, and remember that you are also interviewing them to make sure they are the right fit long-term.

Preparing for your first meeting with a financial advisor is important – by ensuring you have all the right documents, your list of questions, and your long-term financial goals, you’ll get the most out of your time with them.

Start researching financial advisors today to start your journey of financial planning and well-being – this is the gift that keeps giving!