Let’s say you’ve taken the first step and have already decided to speak with a financial advisor. You already know that financial planning and wealth management goals are vital to your long-term financial health, but how often are you supposed speak with your advisor about investments and strategies?
A financial advisor could help you best determine if you are on track to meet your long-term financial goals. Find a qualified advisor today.
How Often Should You Speak With Your Financial Advisor?
Financial planning and management are personalized services, and advisor meetings can vary depending on the degree of help needed. Complicated financial affairs will likely need to be managed and reviewed anywhere from daily to monthly, while individuals with straightforward investments may only need occasional advice.
The ideal frequency depends on the client. Many financial advisor clients track their investments through apps and the web, so meeting too frequently can be more burdensome than useful.
West Michigan Advisors recommends meeting more when you first open an account so your advisor can get a better feel for your needs. Over time you can meet occasionally to review, and then you should ramp up the frequency as you approach retirement.
At the bare minimum you should expect to speak with a financial advisor once a year. Experts recommend meeting at least annually to review your financial strategies as your living circ*mstances change. These reviews can be in person or via video calls, and many advisors choose to text or email more frequent updates as necessary.
When Should You Speak With Your Financial Advisor?
Although some individuals only need to speak with their advisors once a year, your specific circ*mstances may dictate more frequent communication. Some firms offer two meetings within a year, and others prefer to meet clients quarterly. It is always recommended to speak clearly with your advisor about your expectations.
However, there are certain times that you should ask to meet your financial advisor in spite of your scheduled frequency. These include:
- A change in lifestyle. Marriage, birth, death, divorce and moving can all impact your taxes and debt significantly. These are ideal moments for consulting your advisor.
- Purchases financed through debt. Buying a new car, a house and launching a business can also heavily influence your financial plan. An advisor can help outline the financial pros and cons of such decisions.
- Receiving additional funds. Financial advisors can provide insights and recommendations for investing your inheritance or asset sale proceeds, helping you build your wealth smartly.
Communication Is Key
In the end, you are choosing a specific financial advisor because that person or firm offers the services you feel you need. Fee-only financial advisors are preferable, as you can be assured that they are not recommending investments to you in order to pad their bottom line. These professionals charge hourly, monthly or flat fees to advise you and manage your assets, and more frequent meetings may mean more consultation time to be paid.
Regardless, you should feel free to contact your advisor before making important decisions that may impact your finances. For example, investors understandably feel nervous during market downturns, especially when account balances fall, but you should speak to your advisor before panic-selling. Financial advisors are there to guide you through major financial decisions, keeping you on track with your financial goals, so you should always feel comfortable speaking about your finances when the occasion calls for it.
Bottom Line
Experts recommend that you meet at least once a year with a financial advisor to discuss your investment plan and review your risk tolerance and cash flow objectives. You should always be clear with your advisor on how often you expect to communicate, as this may vary depending on the financial professional and your specific circ*mstances.
Tips for Building Wealth
- Not sure what investments and strategies will help you meet your long-term goals? For a solid financial plan, consider speaking with a qualified financial advisor. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Use SmartAsset’s free investment calculator to get a good estimate of how to grow your money over time.
Photo credit: ©iStock.com/pixelfit, ©iStock.com/Remitski, ©iStock.com/Joyce Diva
FAQs
You should meet with your advisor at least once a year to reassess basics like budget, taxes and investment performance. This is the time to discuss whether you feel you are on the right track, and if there is something you could be doing better to increase your net worth in the coming 12 months.
How often should you talk to your advisor? ›
Every relationship is different, and because financial planning is such a personal issue, there's no one-size-fits-all answer for how often you should talk to your adviser. But financial planner Don Grant says there should be a review at least semi-annually.
Is it smart to meet with a financial advisor? ›
Bottom line. While not everyone needs a financial advisor, many people would benefit from personalized advice to help them build a strong financial future. You don't need to have a lot of wealth to take advantage of a financial advisor.
At what point should you talk to a financial advisor? ›
Although, there are major life events that may prompt you to seek out a certified financial planner for guidance on how to move forward. These life events events may include: A job loss, promotion, or major career transition. A recent engagement, wedding, or divorce.
How much money should you have before seeing a financial advisor? ›
Some traditional financial advisors have minimum investment amounts they require to work with clients. These can range from $20,000 to $500,000 or even more.
How often should I be in contact with my financial advisor? ›
You should meet with your advisor at least once a year to reassess basics like budget, taxes and investment performance. This is the time to discuss whether you feel you are on the right track, and if there is something you could be doing better to increase your net worth in the coming 12 months.
Do advisors have to meet with clients annually? ›
There are Advisors who meet with clients on an Annual basis. There are Advisors who meet with clients on a Weekly basis! There is not a 'Right' answer. There is a clear bell curve with Quarterly Meetings a clear mid-point.
At what net worth should I get a financial advisor? ›
Generally, having between $50,000 and $500,000 of liquid assets to invest can be a good point to start looking at hiring a financial advisor. Some advisors have minimum asset thresholds. This could be a relatively low figure, like $25,000, but it could $500,000, $1 million or even more.
Should you tell your financial advisor everything? ›
It's important to reveal “personal issues, no matter how potentially embarrassing, if they concern money,” says John Stoj, a financial advisor at Verbatim Financial in Atlanta.
What are the cons of a financial advisor? ›
Potential negatives of working with a Financial Advisor include costs/fees, quality, and potential abandonment. This can easily be a positive as much as it can be a negative. The key is to make sure you get what your pay for. The saying, “price is an issue in the absence of value” is accurate.
But as helpful as they can be, there are some legitimate reasons you should bid your adviser adieu.
- Your adviser is non-responsive or doesn't listen. ...
- They're not a fiduciary. ...
- There's ambiguity in their compensation structure. ...
- Their performance is poor. ...
- They charge too much. ...
- They're unable to give you the advice you need.
10 Things Your Financial Advisor Should Not Tell You
- "I offer a guaranteed rate of return."
- "Performance is the only thing that matters."
- "This investment product is risk-free. ...
- "Don't worry about how you're invested. ...
- "I know my pay structure is confusing; just trust me that it's fair."
A financial advisor is worth paying for if they provide help you need, whether because you don't have the time or financial acumen or you simply don't want to deal with your finances. An advisor may be especially valuable if you have complicated finances that would benefit from professional help.
Is 2% fee high for a financial advisor? ›
Most of my research has shown people saying about 1% is normal. Answer: From a regulatory perspective, it's usually prohibited to ever charge more than 2%, so it's common to see fees range from as low as 0.25% all the way up to 2%, says certified financial planner Taylor Jessee at Impact Financial.
Is 1% expensive for a financial advisor? ›
While the typical annual financial advisor fee is thought to be 1%, according to a 2023 study by Advisory HQ, the average financial advisor fee is 0.59% to 1.18% per year. However, rates typically decrease the more money you invest.
Should you put all your money with one financial advisor? ›
Whether you should consider working with more than one advisor can depend on your overall goals and financial situation. If you're fairly new to investing and you haven't built up a sizable net worth yet, for instance then one advisor may be sufficient to meet your needs.
How often should you talk to a therapist? ›
Most clinicians agree that attending therapy sessions once a week represents the minimum level of immersion to see long term effects. The reason is simple: therapy is a practice.
How often should you reach out to your mentor? ›
Mentoring Meeting Schedule: The duration and consistency of each mentoring relationship is very important because relationships and a sense of bonding occur over time between mentors and mentees. At a minimum, mentors and mentees should meet at least one hour per month for at least a year.
How often should you talk to someone you're interested in? ›
Generally, at this stage of dating, daily contact is typical, whether through texting, talking on the phone, video chatting, or some combination thereof. Some couples may prefer to talk or text multiple times a day, while others may prefer to communicate less.
How often should you see your counselor? ›
In our experience starting off by coming in once a week is the most effective frequency in order to get the best results from counseling. Starting off with meetings that are less frequent means slower progress, and backtracking in between sessions.
Let’s say you’ve taken the first step and have already decided to speak with a financial advisor. You already know that financial planning and wealth management goals are vital to your long-term financial health, but how often are you supposed speak with your advisor about investments and strategies?
Although some individuals only need to speak with their advisors once a year, your specific circ*mstances may dictate more frequent communication. Some firms offer two meetings within a year, and others prefer to meet clients quarterly. It is always recommended to speak clearly with your advisor about your expectations.
Experts recommend that you meet at least once a year with a financial advisor to discuss your investment plan and review your risk tolerance and cash flow objectives. You should always be clear with your advisor on how often you expect to communicate, as this may vary depending on the financial professional and your specific circ*mstances.