Dec 12, 2016
That’s right — even you! From buying your first home to planning for retirement, financial planning can set you on the right course. Make your planning session with your financial professional a success by deciding what you want to accomplish and preparing ahead of time.
Share Your Info
Your advisor will need to know every detail regarding your finances and your investment goals before mapping out a strategy. It is essential to bring all of your important financial data with you when meeting. This includes bank, investment, and retirement account statements; information on loans and other debts; and last year’s income-tax return.
Define Your Risk Tolerance
If you’re designing an investment plan, your financial professional will help you assess your investor type— conservative, moderate, or aggressive. Your ability to handle risk, as well as goals you’ve set for yourself, will serve as a guide for choosing investments that meet your objectives and comfort level. Exposing your portfolio to too much risk may put your savings in jeopardy, while holding too many “safe” investments may prevent you from reaching your goals.
If you’ve already chosen an investment strategy, use the time with your financial professional to review your progress toward your goals. If your investments aren’t performing the way you expected, you may want to make some changes.
Bring Your Spouse
If you’re married, both you and your spouse should attend the meeting and be prepared to discuss your goals and expectations. If you and your spouse have different objectives or risk tolerances, your advisor can help you come up with a plan that addresses your differences. Your session may be more productive if you and your spouse discuss financial issues before the meeting
It’s a Lifelong Process
You can’t simply “set and forget” your financial plan. Over time, your goals and risk tolerance may change. You’ll probably achieve some of your objectives, and new ones may take their place. Even events that are out of your control, such as market volatility and inflation, can affect your plan. Reviewing your strategy periodically with your financial professional can help you stay on track.