Time is precious no matter who are, but even more so with a wealth advisor. You have to convey your financial goals and start to put a financial plan in place in an hour or less. The reality is, men have historically arrived at these wealth-planning meetings with more knowledge of investment styles and types. This means your wealth planner will spend more time explaining the basics to you. Sometimes these sessions can be painstakingly patronizing yet often they also provide valuable, current information on fast-changing investment markets.
You can ensure the meeting’s focus is on value-added information by being prepared and asking more specific, targeted questions. Here are 10 questions to ensure a productive wealth management meeting.
- Wealth Advisor Profile – This basic criteria is overlooked by most Would you hire a hat maker to design your wedding dress?
Ask: Are you or your clients of the same investment profile as me? And, what is your investment style?
- Your Net Worth – Calculating your net worth is the first step of financial planning. Avoid spending your meeting filling out for Subtract your debts from your assets to get your net worth. Know your savings, expenses, and monthly cash flow. Some investors ask their wealth advisor for his net worth.
Ask: A better question is, how did you build your net worth?
- Managing Debt – Households in Singapore have racked up debt equal to 76% of the gross domestic product. A priority should be paying down debt so you can put the interest charges to work for you in the investment market.
Ask: What should I pay off, in what order and how much? Longer term, ask, how do I retire without debt?
- Investment Goals – When do you plan to retire? Fewer people are answering at 65, so why listen to the retiring at 65 spiel. State, like my father and mother, I plan to work until I am 80.
Ask: What retirement plan will provide the highest quality of life for a late retirement?
- Risk Tolerance – Risk tolerance is the subject of many investment myths. Challenge them.
Ask: Rather than be ultra conservative, I want a bit of excitement and growth in my retirement years, what would you suggest?
- Asset Allocation – Once your financial position, investment horizon and risk appetite are determined, the specific investments types can be determined. Asset allocation is not a one-time deal.
Ask: What type of adjustments will I need to make over time, and what fees will be involved? What changes in the economy and my personal situation should trigger a revaluation?
- Insurance – A good investment planner will be familiar with insurance options beyond term and whole life insurance that only pay out when you Many life insurance products provide cash flows that could provide income for the early or late retiree.
Ask: What insurance policies will create income streams for me during my lifetime, and when should I consider them?
- Estate Planning – With family wealth planning, bitter estate battles are happening less frequently. You do not need to have a formal family office – private family investment vehicle – to benefit from the wisdom of family offices.
Ask: What are five ways family planning can make my estate planning more successful?
- Tax Savings – Taxes are boring and often difficult to follow but key to reaping higher returns from your financial plan. Cut to the chase before he starts citing sections of the tax code.
Ask: What is the most tax-efficient investment portfolio for me? Then you can ask more questions within a context that is relevant to your financial
- Diversification Strategy – Portfolio diversification is a key objective of wealth advisory. Your wealth advisor should be applying the latest tax strategies and investment vehicles. Motivate your wealth planner to think innovatively on your behalf:
Ask: What are ten ways I can diversify my investment portfolio to reduce the risk of losses while growing and protecting my capital?
These questions provide general guidance and should be tailored to address your investment objectives. Incorporate your personal objectives such as investing in ethical, green and socially responsible investments.
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