Making the most of your meeting with a financial adviser

Work with someone you trust

Trust is the cornerstone of any successful financial planning relationship, and your adviser should take the time to listen, understand your personal goals, and provide guidance that aligns with your specific financial situation. Equally important is that you, as the client, fully understand the advice being given. Don’t hesitate to ask questions – continue the conversation until you feel confident and comfortable with the recommendations being made.

I would encourage you to include your spouse and older children in these conversations, as it is important for everyone in the family to understand the key elements of financial planning and to build a relationship with your adviser.

What to expect in your initial meeting

To develop an appropriate and tailored financial plan, your adviser will typically ask questions covering the areas outlined below.

Personal and financial background

To help your adviser understand your situation comprehensively, you’ll need to share information about your personal circumstances, including your marital status and, if applicable, your marital regime. They will also ask about your employment status, income level, and any dependents you may have.

Your adviser will need to understand your current financial situation as well, including details of your major assets and liabilities, whether you have life, disability, or critical illness insurance policies in place, and whether your estate planning is up to date (for example, wills and trusts). Additional aspects that your adviser will typically enquire about will include any emergency fund that you may have in place, your monthly expenses, and whether you are anticipating any major changes in your income or expenses.

Financial goals

Clarify your objectives over different time horizons with your adviser and explain your short-, medium-, and long-term financial goals. Make sure that you explain any specific milestones or timeframes you're working towards.

Investment experience and preferences

Think about the types of investments you have previously held and how comfortable you felt about each of them. Sharing these insights will help your adviser to understand your investment experience and preferences.

Risk tolerance and investment purpose

Consider the level of risk you are comfortable with and explain whether you are investing primarily for capital growth, income generation, or capital preservation. This will help guide your investment strategy.

Time horizon

Your adviser will need to understand when you intend to start withdrawing funds and how long you can leave the investment untouched, as this will shape your investment approach.

Legal and tax considerations

To create a tax-efficient financial plan, your adviser will need to know about the countries in which you are a tax resident and understand whether you plan to relocate or change this status. Other important aspects in this category are your marginal tax rate, as well as details of any business entities, trusts, or legal structures involved in your financial affairs.

What you should ask your financial adviser

It’s equally important for you, as the client, to assess whether the adviser is a good fit for your needs. To help you decide, consider asking about the points given below.

About the adviser

Ask your adviser about their qualifications and the designations they hold. Ideally, they should hold a postgraduate diploma in financial planning and be a certified financial planner – indicated by them carrying the CFP^® designation. Also enquire about how many years of experience they have in providing financial advice.

Services offered

Ask about the services they provide. Do they offer comprehensive financial planning or investment management only? Find out if they will provide you with a written financial plan.

Fees and compensation

Clarify how the adviser is compensated – whether through fee only, commissions, or a combination of both. Ask for a breakdown of your total fees, including fund and platform charges, and find out whether they receive any commissions or incentives from any third parties, such as product providers.

Investment approach

Discuss how the adviser develops investment strategies for clients and how they assess risk tolerance and time horizons. Find out what types of investments they typically recommend, and why. In addition, ask about how often your portfolio will be reviewed.

Trust and transparency

Find out how often you can expect to meet and how often the adviser will communicate with you. Ask if you will receive regular reports and performance updates that are easy to understand and whether they can provide testimonials or references from existing clients.

Risk management and protection

Ask the adviser how they manage and mitigate investment risk and enquire about the safeguards they have in place to protect your capital during times of market volatility.

Regulation and compliance

Check that the adviser is licensed and regulated by the Financial Sector Conduct Authority (FSCA) and understand the steps you should follow if you have a concern or complaint.

Flexibility

Find out how easily your investment plan can be adjusted. Ask if there are penalties or exit fees if you decide to end the relationship.

Preparing for your annual review

Your annual review is a vital opportunity to assess whether your financial plan is still aligned with your goals. This is the time to:

• review the progress you are making towards your goals,
• update your adviser on any changes in your life, income, or family circumstances, and
• make any necessary adjustments to your plan in response to changing conditions or priorities.

Take the initiative

By being proactive, you ensure your financial strategy remains aligned with your changing needs – protecting what matters most while staying focused on your future.

“Plan for what is difficult while it is easy; do what is great while it is small.” – Sun Tzu