When it comes to planning for your future, it’s easy to fantasize about earning enough money to achieve your goals. Whether you want to unlock the home of your dreams, go on vacations across the world, or start a business, the key to reaching financial independence is to prepare for the little steps you need to take along the way.
A financial advisor can help give clarity to your financial situation and improve your relationship with money, so you can stay on track with your vision for your lifestyle. In that regard, it’s crucial to make the most of your time with your financial advisor, so you can move forward with greater peace of mind.
Asking the right questions typically opens up complex conversations worth having, so don’t forget to open up to your financial advisor once your consultation starts.
5 Important Questions to Ask Your Financial Advisor
1. What is Your Take on the Proper Investments for Me?
Choosing the right investments can be a challenge, especially if you don’t know what to look for. The right investment can help you boost your earnings, and the wrong ones can lead you to lose your hard-earned money. Whether you want to invest in stocks or mutual funds, you need to know what the financial advisor’s advice is about the investments for you.
Ask: What are your views on investing in stocks compared to mutual funds? What are the risks to investing in stocks, and how can I avoid those risks? If your financial advisor can help you with these critical questions, then you can trust their abilities to push you on the right path to financial success.
2. How can I be a Tax-Efficient Investor?
Depending on your financial advisor, you may find that he or she is more knowledgeable about investments and can help prioritize your finances. But what about taxes? A good financial advisor will be familiar with tax laws and help you stay on top of your finances to minimize your tax liability. This can be especially valuable if you are looking to build your wealth without losing a good chunk of it to your taxes.
Ask: Are there any tax-efficient investments that I can do to boost my savings? What are the tax-efficient ways for me to store my money? Your financial advisor should be able to point you in the right direction, from maintaining your 401(k) at work and more.
3. How Can You Help Protect My Assets?
Your financial advisor should have the knowledge to help you protect your assets from a different angle. Not only should he or she help you get started with the right investments, but should also help you with any legal issues you may have.
Ask: Are you familiar with these [estate planning, wills, life insurance, etc.]? What are the best ways to make sure that my assets are protected? If they are not familiar with these, then they may not be the right financial advisor for you. But if they do know what they are doing, they can help you build a solid foundation that keeps your legacy secure.
4. What is Your Mode of Communication?
This is one of the most important questions to ask your financial advisor, because it can determine how you receive information, in addition to how quickly you receive it. Remember that the best financial advisors should be contactable at all times, whether you need a question answered or want a face-to-face meeting to discuss the next steps in your financial journey.
Ask: How can I reach you? How can I get ahold of you during off-hours? Keep in mind that there is never a “perfect time” to be contacted, so it’s best to be available to your clients, no matter what the situation is.
5. What is Your Fee Structure?
This is one of the most important questions to ask your financial advisor because it’s something that many clients never think to ask. Aside from the knowledge they have to help you create a solid financial plan, you should also ask about their fee structure. How often do they charge, and how much do they charge? More importantly, will they charge more if your financial situation requires extra attention?
Ask: How do you charge your clients? Do you charge by the hour or by the project? Do you charge a flat rate or percentage? These are some of the most common questions to ask, but they are also some of the most important ones.
The Bottom Line: Ensuring You’re with the Right Financial Advisor
When it comes to your finances, it’s important to ensure that you are getting the most out of your financial advisor. This means asking the right questions on how they approach your situation, how they will be in contact with you, and how they will help protect your assets from different angles. Making your money work for you is a huge undertaking, so you need to select the right financial advisor to help you achieve your financial goals.
How Can We Help You?
Whether you need to build your wealth through sustainable investments or other finance tips and tricks, New Wave Financial Planning can give the best financial advice on the Gold Coast. Get in touch with our financial advisers today at 07 5504 1999! Our team of experts can help you achieve financial wellness.
