One-Time Checkups With Your Financial Advisor

By Mike Obel | AUG 30, 2023

Effective communications with your financial advisor is a key element to getting the most out of the relationship. How often to communicate, topics to ask about or discuss and what mode of communication would be best should all be aligned with your needs and preferences. Here is an overview of considerations that can help you decide how frequently you should communicate with your advisor. A financial advisor has practical expertise on a broad range of money-related issues. Here’s how to find one easily. 

Why Have Less Frequent Check-Ups With Your Financial Advisor?

The reasons to communicate with a financial advisor can vary widely. For many clients, relatively infrequent check-ups are fine, especially when market volatility is low, clients are not experiencing major changes and their financial plan has been well-designed and is being carefully executed. Client temperament can also indicate less frequent check-ups. If you are not particularly interested in following financial developments or tracking your investments, fewer meetings with your advisor can be appropriate.

For some clients, though, more frequent communication might be important. For example, needing ongoing investment advice, fear of market volatility and life changes, like suddenly inheriting a large sum of money, can indicate more frequent communications are appropriate.

Keep in mind that if you have signed a contract with an advisor or firm there may be stipulations about how often you may engage directly with your advisor.

Questions to Ask During a One-Time Financial Advisor Check-Up

What you and your advisor talk about can vary as widely as market conditions and any life event you are undergoing or expect to undergo, among other factors. Here are some recommended lines of inquiry.

• Are we still on track to achieve my overall financial goals?
  This ensures that your advisor’s plans for your money still align with the goals that you might have provided at the outset of the advisor-client relationship. It also allows you to consider and express how your goals might have changed.
• Have your fees changed in any way?
  Advisor fee schedules might change in amount or structure, which will affect your budget overall in the end. Fee structures or packages may change, though generally they are based on some percentage of assets under management (AUM) or on an hourly basis or other flat fee schedule. Some advisors may add, remove or modify wrap fee programs or performance-based fees from their structure.
• Have there been any changes to your team or firm that will affect my financial plan?
  Advisor teams and firm structure may change, meaning that your questions and check-ins may have to be with additional or new advisors or their colleagues.
• Are there new trends, research or approaches that you’ve learned about that you think it would be important to consider for my financial plan?
  Investment strategies vary by firm, but may also vary over time within a single firm or team of advisors. Sometimes firms allow advisors to work with clients using individualized and tailored strategies that they see fit. Your advisor can be a great source of information about current trends or goings on in the financial world that you might want to consider.
• Are there any financial situations you think I should prepare for moving forward?
  If a life change or life event has just happened or has the likelihood of happening, your advisor might be able to point out the potential financial consequences that you might not see at the moment. Some instances include moving, career changes, homeownership status changes, family changes like marriage, divorce, having children, age, death of a family member, a terminal illness and retirement. 
• When is the next time we’ll communicate? Are there any documents I should have for you before next time?
  More sporadic communication means that a little planning can go a long way. Preparing financial statements or other documents ahead of time helps you and your advisor stay on top of everything on time.

Methods of Communication

The other factor to consider alongside frequency of communication is method of communication. On the one hand, it’s ideal to have check-ins on the phone or virtually, as we’ve seen through the COVID-19 pandemic. Perhaps a quarterly email or video call is more efficient, and lets you use what might have been commute time in a different way. On the other hand, connecting in person can help strengthen the relationship between you and your advisor. Or you might find a way to settle on a mix of different methods depending on what works for you both - just be sure to communicate your needs to your advisor so that you understand how to best move forward.

Bottom Line

The frequency of check-ins with your financial advisor depends on your questions and needs. A good financial plan and relative stability in your life and in the markets mean check-ins need not be frequent. Annual or quarterly check-ins are common but by no means obligatory.    

Tips on Choosing a Financial Advisor

• You have a list of questions, but how do you actually get connected to an advisor? Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors in your area, and you can have free introductory calls with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Financial advisors have different areas of expertise, so it’s important to consider why you want an advisor before diving into the search. If you’re looking for help crafting a financial plan, a certified financial planner (CFP) may be useful. If you’re going through a divorce, you might want the assistance of a certified divorce financial analyst (CDFA).

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