You've taken an important first step in your financial journey: scheduling a meeting with a financial advisor. Working with an advisor can provide clarity and a strategic direction, whether you're planning for retirement, saving for a home, or simply seeking professional advice on how to grow and manage your wealth.
Before this initial meeting, it is crucial to determine what you want to achieve from the relationship. Are you looking for a comprehensive financial plan, investment strategies, or a second opinion on your current financial situation? Understanding your needs and goals will help guide the conversation and ensure you're aligned from the start.
Asking the right questions will allow you to assess whether the financial advisor is the right fit for your unique financial objectives. Consider asking the following key questions during your first meeting.
Can You Tell Me About Your Experience & Qualifications?
Just as you would ask a doctor about their medical qualifications and their expertise, you should also inquire about your financial advisor's background. Are they a Certified Financial Planner (CFP®)? Do they have experience in specific areas of finance that align with your goals, such as retirement planning, tax strategy, or estate planning? Knowing your advisor's background can ease concerns, build trust, and confirm they are equipped to assist you.
What Services Do You Offer, & How Can They Support My Financial Objectives?
Wealth management firms vary in the services they provide, but most offer a combination of investment management, financial planning, and access to alternative investments. It's essential to make sure that the firm you choose provides the services that best support your needs. Additionally, financial advisors often have specialties, so you should inquire whether they focus on areas such as retirement planning, tax strategies, estate planning, or investment management. Familiarizing yourself with the firm's offerings will help you find the right support to tackle your financial objectives.
Can You Explain Your Investment Philosophy & How You Would Adapt It to My Specific Needs?
Although financial advisors tailor plans to individual clients, there is often an underlying investment philosophy that guides their approach. This philosophy typically reflects the advisor's view on risk, market efficiency, and asset allocation. Some advisors may focus on a conservative, low-risk strategy, while others might take a more aggressive, growth-oriented approach. It's important to understand how their core investment beliefs will be adapted to meet your specific goals. By discussing their philosophy, you can verify it aligns with your risk tolerance, time horizon, and overall financial objectives.
How Will We Work Together to Achieve My Financial Goals?
Client involvement can vary depending on personal preferences. Some clients desire a high level of collaboration, working closely with their advisor to regularly review and adjust their financial plan. Others may prefer a more hands-off approach. Regardless of the level of involvement, you should establish clear expectations from the onset about how you and your advisor will communicate and work together.
Could You Please Explain Your Compensation Structure & Any Fees I Should Be Aware Of?
Understanding how your financial advisor is compensated is crucial for ensuring transparency and avoiding potential conflicts of interest. Some advisors are fee-only, meaning they charge a flat fee or an hourly rate for their services, while others may earn commissions from selling financial products. Additionally, some may use a combination of both methods. It's important to ask about all potential fees—such as management fees, fund expenses, or any additional charges—to understand the full cost of working with the advisor. Clarity on compensation will help you make informed decisions and ensure that their incentives are aligned with your best interests.
Partnering with a financial advisor can provide immense value. By clearly defining your financial objectives and asking the right questions, you lay the groundwork for a productive and mutually rewarding relationship that will guide you toward financial success.
Don't forget to also consider the questions the advisor is asking you. As HORAN Wealth Advisor Kathy Laverde, CLU®, APMA™, puts it, "Find an advisor who asks questions and listens to what's important to you." A strong partnership goes both ways, and an advisor who takes the time to understand your needs is likely to be the right one to help you reach your financial objectives.
HORAN Wealth is here to help you grow, sustain, and safeguard your wealth. We offer a variety of wealth management services, and we have a team of experienced advisors ready to assist you. Visit https://horanwealth.com/contact to contact us today!
HORAN Wealth is the marketing name of HORAN Securities, Inc. (“HSI”) and HORAN Capital Advisors, LLC (“HCA”). Securities offered through HSI, a dually registered investment firm, member FINRA | SIPC. HORAN Wealth Management (“HWM”) is the associated investment advisory firm. HCA is an affiliated investment advisory firm.