How to Prepare to Meet With a Financial Planner

 Planning for the future is hard work, but a qualified financial planner can lighten the load considerably. A good planner will listen to your financial goals and find ways for you to achieve them. You’ll need to gather financial information and put it in some kind of order, but you’ll soon be on your way to financial freedom in no time.

Part1

Gathering Information

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   1
   Gather statements for all investment accounts. Your financial planner will want to see how much you have saved, so gather the most recent statements for the following:^[1]

   • 401(k)
   • IRA
   • 529 savings plan
   • Savings account
   • Checking account
   • Investment accounts
2. 
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   List your assets. In addition to your investment accounts, your financial planner will want to know what assets you currently own. Write down your list of the following:^[2]

   • Your home
   • Other real estate
   • Your vehicles
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   Create a debt profile. Your planner also needs to know what you currently have in debt. Gather your most recent statements and compile a list. Include the amount that you owe, as well as your interest rate. Include the following debts:^[3]

   • Mortgage
   • Student loans
   • Personal loans
   • Credit card balances
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   Outline your income and expenses. Sit down and add up all sources of income. Include things such as wages or salary from a job, alimony, child support, and investment income.^[4]

   • Break out your expenses between fixed expenses, which don’t change each month, and discretionary spending. Your fixed expenses are things like rent/mortgage, debt payments, and insurance premiums.
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   Gather estate planning information. Your planner can help you realize your estate planning goals, such as leaving enough money to your children. Gather the following to show your financial planner:^[5]

   • Your will
   • Any trust
   • Life insurance policies
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   Create digital copies of financial documents. Your financial planner will thank you if you put them all one place. Making digital copies is probably the easiest method of getting organized. You might be able to download some documents in digital form (such as credit card statements). With other documents, you may need to create a PDF.

   • After digitizing your documents, you can load them all onto your laptop and take it with you to the meeting. When your planner wants to see a document, you can pull it up easily.^[6]
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   Identify your financial weaknesses. You’ll get more out of a meeting if you know ahead of time where you financially fall short. Check your bank and credit card statements for the past few months and identify what you spend the most money on.^[7]

   • For example, you might be an emotional shopper or someone who overspends on housing or transportation.
8. 
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   Complete a questionnaire. Many financial planners will give you a questionnaire to fill out, which will ask for information about your income, debts, and assets. You will either need to take it to your first meeting or submit it ahead of time. Be sure to complete the questionnaire thoroughly to the best of your ability and keep a copy for your records.

Part2

Setting Financial Goals

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   1
   Create a list of financial priorities. You may have many goals you need to meet even before retirement. Come up with a list and rank them by priority. Consider the following:

   • Do you want to buy a home? Do you think you want to buy a bigger home in the future? When do you want to buy?
   • Do you have debts you want to pay off, such as student loans or credit cards? How important is paying them off early compared to saving for a down payment on a home?^[8]
2. 
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   Identify when you want to retire. Your financial planner can’t help you plan unless they know where you want to go. One key life event to plan for is retirement. Think about when you want to retire. 55? 60? 70?^[9]
3. 
   3
   Envision your retirement lifestyle. If you want to travel the world, then you’ll need more money than if you intend to stay at home and take up oil painting. Think about what you want to do in retirement. Your financial planner can help you figure out how to support your retirement lifestyle.^[10]
4. 
   4
   Involve your spouse, if applicable. A financial plan won’t succeed unless both spouses work together. Sit down and hash out what your future looks like.^[11] Try to find consensus before meeting with your financial planner. They aren’t a therapist who can help couples work through money issues.

   • It’s okay if you don’t agree on everything. You might not have all the information you need to make an informed decision. After meeting with your financial planner, you both might agree on a course of action.

Part3

Preparing a List of Questions

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   Discuss your risk tolerance with your financial planner. You might have set up your 401(k) or IRA without really understanding what you were doing. Now that you are meeting with a professional, you can talk about your risk tolerance.^[12] For example, ask the following questions:

   • "What are the strengths and weaknesses of my current investment strategy?"
   • "What are the downsides of investing heavily in stocks at my age? Are there any upsides?"
   • "I’m scared of swings in the stock market. How can I maximize my investments safely?"
   • "Will more conservative investments help me achieve my financial goals?"
2. 
   2
   Ask whether you need to adjust your goals. You might want to retire at 55, but you’ll need to have enough money saved. Ask your financial planner if you can currently meet your goals or if you need to change your time horizon.^[13] Ask the following:

   • "Am I on track to meet my financial goals?"
   • "How can I change my investments to meet those goals?"
   • "Would I be better off changing my goals, such as retiring later?"
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   3
   Discuss future lifestyle changes. You might get married, have a baby, or start a new business. You want to understand how these changes will affect your finances. You might need to change your investment strategies as a result. Ask the following:^[14]

   • "Will I need to save more?"
   • "Should I change the beneficiary designation on my retirement accounts and life insurance policies?"
   • "Should I change my will or trust?"
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   4
   Ask questions about your future communication. At the end of your meeting, your financial planner will give you a detailed roadmap for achieving your financial goals. However, things change. You’ll want to know how your financial planner will communicate with you. Ask the following:

   • "Will you update me of changes I should make in my investment strategy?"
   • "How can I reach you if I have a question? Do you respond to email?"
   • "Should I schedule an annual financial check-up with you?"