Do you need to tell your investment advisor EVERY single detail of your daily life? No. However, if it’s going to impact any part of your financial future and your financial goals – you NEED to let your advisor know. You and your advisor are a team. Together, you can create a well-oiled machine of a plan that can help you get to where you want to go financially.
Unfortunately, you may not be sharing with them everything that you should be. Whether you think it’s unimportant or are a private person, not sharing what you need to with your financial planner could result in problems with your financial future. Below are a few things that you should always share with your advisor.
1. What Your Goals Are
This is an absolute no-brainer. No questions asked. Not only financial goals, but life goals, family goals, retirement goals, etc. 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.
Planning for retirement here at the Jersey Shore, or buying your dream house down in Spring Lake, or starting your family somewhere in Monmouth County – if these are your goals, your advisor needs to know! It’s impossible to create a fully functioning financial plan without knowing what you’re planning for.
2. Your Honest Feelings About Your Financial Situation
The word HONEST is the key word here. Honesty is key when it comes to financial success. Not only honesty about what you want to achieve, but honesty about where your finances are right now. Don’t just tell your advisor what you think they want to hear. We tell clients all the time here that the specific numbers themselves don’t matter to us. We do not judge. What matters to us is that those specific numbers are in line with your goals, and your personal situation.
Being honest about your investments is a crucial part of this as well. 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. We also can help explain occurrences in the market that can put your mind at ease. Remember it is our job to guide you through your financial journey and handle any concerns that may arise.
3. Changes in Your Job or Other Income
If it impacts your income, or your financial goals in anyway, we need to know about it. Especially in a year like 2020 when there have been so many changes with jobs and workplace retirement plans.
Whether it is a big change such as losing a job or completely switching careers, or even small changes, such as changes to your benefits, you should tell your advisor. 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.
If it has to do with money coming in or money going out, it’s safe to assume that your financial planner or advisor should know about it.
4. Major Changes to Your Personal Life
There are some aspects of your personal life that are actually necessary to share with your advisor. If you plan on getting married, divorced, move to a new house, sell your house, start a family and have kids, or anything that requires substantial financial consideration – you should let your advisor know. 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. Life can get pretty expensive, but the good news is that we can plan for it!
You and your financial advisor will both have the same goal in mind. You both want to see all your goals be met – financial, life, personal, family, etc. Remember to treat your advisor as part of your team and trust them with all the changes in your life that can affect your financial future. If you don’t have an advisor on your team, and would like to speak with someone, we would be happy to talk to you! Click here to schedule an initial appointment. There is no cost or obligation.
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