Ever wonder exactly how often you should be meeting with your financial advisor? If so, you're not alone; we're often asked if there's a standard time frame that investors should adhere to.
Though we always recommend -- at minimum -- an annual performance review, a few other circumstances necessitate a sit down with your wealth advisor.
Estate Planning Strategies: Schedule a Meeting
Estate planning is an essential component in your comprehensive financial plan. Along with your tax professional and your estate planning attorney, your wealth advisor can help ensure that estate planning fits into your strategic financial planning process.
When you are creating an estate plan or if you've made significant changes to your existing estate plan, schedule a meeting to bring your wealth advisors onboard. While your advisor can't offer legal advice -- for that you'll need to consult with your attorney -- they can offer information that guides your estate planning in the right direction.
More Debt or More Money? Meet with Your Wealth Advisor
Taking on new or major debts, such as buying a house, purchasing a new car, or taking out educational loans for your children, represents a significant change in your financial circumstances. Your advisor may want to discuss the impact that additional debt may have on the structure of your portfolio, your tax burden or other factors -- all with the goal of keeping your portfolio balanced and your investments on track.Similarly, if you receive an inheritance, make an appointment to discuss your new assets. Your advisor can help you identify the best long-term financial strategies to make the best use of your inheritance. Working in collaboration with your tax professional, your wealth advisor will also help you to determine time-sensitive steps associated with the inheritance, such as:
Reviewing your current investment strategies
Reviewing your estate and retirement plans
Major Life Changes: Time for a Sit Down
Schedule a meeting with your advisor when you experience significant life changes, such as:
Birth of a child
Job changes or loss
You should also contact your advisor if your spouse should pass away. Your advisor will walk you through the necessary steps, such as reregistering your investments. All of these factors can impact your short- and long-term financial plans; your advisor will help you sort through the implications of these events and adjust your portfolio if needed.
Regular Meetings with Your Wealth Advisor
While every investors' needs are different, we recommend meeting at least once per year for a portfolio performance review. You'll also want to speak with your advisor regularly about rebalancing your portfolio in order to avoid concentration, manage risk and keep your investments well diversified.
Of course, you should always set up a meeting with your advisor whenever you have a question or concern. Whether over the phone or in a face-to-face setting, your advisor's role is to place your interests first and offer you advice when you require it. You should always feel comfortable contacting your advisor, even if it's not in a formal meeting.