Regular meetings with your financial advisor are instrumental to reaching the goals you have for your investment portfolio. Catching up annually to get a quick report on the “bottom line” is not enough to ensure your advisor understands your goals and you understand the way your money is being invested. Wealth management – no matter the goals that are meant to be reached – is a collaborative process between you and your team. You’re the coach. If you’re not regularly huddling the team up to address the direction you want to go, it will be hard to get there.
At Insight we recommend quarterly meetings with each client. These meetings are an excellent opportunity to hold your advisor accountable and address any changes necessary in the plan. Here are three questions you should ask in those meetings to confirm you’re on the same page:
- Are we on track with the overall plan?
You and your advisor should have an agreed upon plan. The goals may vary depending upon your current situation (i.e. education, retirement, charitable giving), but the direction should be clear. Use this time to get specific, data-based answers on the progress toward your goals.
- What did/did not work this quarter?
No investment strategy works exactly as planned, 365 days a year. That’s okay. But it’s important to have a solid grasp of what is and isn’t working in your portfolio over time. If you notice a pattern of failure that the advisor doesn’t seem to have a plan to address, it’s your responsibility to insist on changes.
- Are you recommending any changes at this time and why?
Every advisor has different strategies they employ in an attempt to maximize client returns. Some will be more apt to make changes rapidly, while others will be more likely to hold fast as they let a strategy develop. That said, make sure you understand their plan for the next quarter and it is one which makes you comfortable. If you are uncomfortable, be certain to say so and insist adjustments are made.
Before you end your quarterly update, make sure to add one more question to the list: When are we going to meet again? As we said at the beginning, regular communication with your advisor is going to ensure you’re on the same page. Make it a collaborative experience and everyone involved will be much happier!
