Successful Retirement Institute® Blog
This is certainly not an exhaustive list. In my opinion, as a Certified Financial Planner™, you are potentially hurting yourself if you don't share everything we ask for and or need. Your financial advisor is an integral part of your team to help you manage your wealth and grow your future. That said, you may not be sharing with us everything. Whether you are not communicating things because you feel they are unimportant or are a private person who wishes to keep certain information to themselves, not sharing what you need to with your financial advisor could result in problems with your financial future. Below are five things that you should always share with your advisor. Again, not an exhaustive list, but a good start!
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 these goals involve finances or not, 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 is considered traditional goals, your advisor may find certain solutions that can help these goals be obtained as well.
2. Your Honest Feelings About Your Financial Situation. You may be under the impression that being confident and under control at all times is necessary to portray strength. But putting on a bravado that you feel everything is ok when you are panicking inside will not improve your situation, and could make it worse. If an investment makes you nervous, or 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 that can put your mind at ease. Remember it is their job to guide you through your wealth journey and handle any 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 need additional insurance coverage to fill in the gaps for lowered benefits. If you embark on a side job, you should also consult with them 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 prudent 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 having children. Your advisor can help you plan for the loss of assets in your divorce, help you invest properly to plan for 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 comprised, or you suspect your identity has been used by someone else, you should alert your financial advisor immediately, even if it is as simple as you have 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.
You and your financial advisor will both have the same goal in mind, which is making you more money, growing your wealth, and protecting it. Remember to treat your advisor as part of your team and trust them with all the changes in your life 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.
Roy Larsen is a Certified Financial Planner™ practitioner and Fee Only Wealth Manager who resides outside of Atlanta, Georgia.