Your financial advisor is an integral part of your team to help you manage your wealth and grow your future. However, you may not be sharing with them everything that you should be. Whether you are not communicating things because you feel they are unimportant or you’re a private person who wishes to keep certain information to yourself, not sharing what you need to with your financial advisor could result in problems with your financial future.
My name is Ryan Burgess, and I help people make more informed financial decisions. I’m a financial planner in Roseville, California, and I run Blue Oaks Financial, a fee-only firm with the mission of helping clients grow their investment income through their retirement years. Based on my almost-20 years of experience working in financial services, here are the 5 things that I think you should always share with your advisor.
1. What Your Goals Are
You can have all types of goals in your life—from charitable giving, to buying a vacation home, to planning for retirement. Whether or not these goals involve finances, it is important that your financial advisor knows them, so that they can provide you with the best advice on how to achieve these goals. You may be concerned about caring for a family member or protecting your family against possible interruptions in income. While these may fall outside of what are considered traditional goals, your advisor may be able to find solutions to help you achieve these goals as well.
2. Your Honest Feelings About Your Financial Situation
You may be under the impression that being confident at all times is necessary to portray strength. But putting on false bravado when you are panicking inside or hiding things from your advisor due to embarrassment will not improve your situation—in fact, it could make it worse. If an investment makes you nervous, or if you have a financial concern that has been worrying you, your financial advisor is there to help you work through it. They also can help explain occurrences in the market and put your mind at ease. There’s no such thing as a stupid question. Remember, it is your advisor’s job to guide you through your wealth journey and handle any and all concerns that may arise.
3. Changes in Your Job or Other Income
Whether it is a big change such as losing a job or switching careers, or even small changes such as adjustments to your benefits, you should alert your financial advisor right away. You might need to adjust your retirement allotment to account for other possible expenses, or you may need additional insurance coverages to fill in the gaps for lowered benefits. If you embark on a side job, you should also consult with your advisor to determine the best ways for tax planning and possible investment opportunities for any surplus of income.
4. Major Changes to Your Personal Life
There are some aspects of your personal life that are crucial to share with your advisor. Such things as separations or impending divorces can greatly affect your finances as well as deciding to get married or have children. Your advisor can help you plan for the loss of assets in your divorce, help you invest properly to plan for your children's college education, or advise you on changes to your life insurance and other assets to protect your family.
5. Data or Identity Breaches
In the event your personal information has been compromised or you suspect your identity has been used by someone else, you should alert your financial advisor immediately, even if it’s as simple as you having lost a credit card. Your financial advisor will have the ability to place additional restrictions on your account and provide added security to protect your financial information and wealth. Your advisor can also provide you with advice on how to protect yourself from future breaches.
Your financial advisor should have the same goals as you: making you more money, growing your wealth, and protecting it. Don’t have an advisor? Or having doubts about your current one? It’s essential to find a financial planner you can trust. This means they should be fee-only and have your best interests in mind. Also, as much as it’s important to find someone who regularly communicates with you, it’s just as important that you keep your financial advisor informed. Remember to treat your advisor as part of your team and trust them with all the changes in your life that can affect your financial future.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.