What To Expect From A Financial Review | Release
The COVID-19 pandemic may have disrupted many aspects of your life, including your financial situation. Even if your job and income weren’t directly affected, you might wonder if you made the right investments in such a stressful environment. The pandemic is hopefully only a once-in-a-lifetime occurrence, but different events can rock financial markets. And changes in your own life can affect your plans as well. To prepare for whatever tomorrow may have in store for you, you might want to hire a professional – but what can you really expect from a financial advisor?
A financial advisor will look at your life holistically – your family makeup, your career, your hopes and dreams, your instinct to save and spend money, your tolerance for risk, and other factors. So, in your first meeting, and in subsequent reviews, here are some of the key areas you’ll discuss:
• Feelings about your financial situation – Numbers are important to financial advisors, but what matters most to them is understanding what is important to their clients. Are you sure of your overall financial outlook? Are you worried about your cash flow? Are you worried about the volatility of the financial markets? Do you have concerns about your career? By getting the answers to these and other similar questions, a financial advisor can get a clear picture of who you are and what matters to you. You can then follow an established process to build your personalized strategies and take the specific actions needed to achieve your goals.
• Progress Toward Your Goals – It takes patience and discipline to achieve long-term goals, like helping send your kids to college or enjoying the retirement lifestyle you’ve envisioned for yourself. As you save and invest for these goals over the years, you’ll want to… regularly measure your progress. If you seem to be falling behind, your financial advisor can suggest actions such as increasing your investments or adjusting your investment mix.
• Changes in your family situation – Marriage or remarriage, the arrival of new children, the departure of the children for college, caring responsibilities for older parents – all of these events can make a big difference in your goals and, therefore, your investment plans. During your reviews, your financial advisor will take these changes into account when making any suggestions or recommendations. (Changes in your family’s status may affect your estate plans, so you will also need to work with your legal counsel or other estate planning professional.)
• Changes in your retirement plans – As you approach retirement, you may decide that your original plans for this time in your life are no longer suitable for you. For example, you might have once thought that when you retired you would stay close to home, volunteering and pursuing your hobbies. But now you are wondering how much you would like to travel, or maybe even live abroad for a while. To accommodate your change in plans, a financial professional may recommend certain moves, such as working a few more years or adjusting the amount you eventually withdraw from your 401 (k), IRA, and other retirement accounts.
As you work towards your goals, you may find it difficult to navigate the financial markets and react to changes in your life, but you don’t have to go it alone. And knowing what to expect from a financial advisor can help ease your journey.
Jacob Chesla is a financial advisor and Kimberly Cheney is a branch administrator at Edward Jones Investments in Isanti. They can be reached at 763-452-0135. This article was written by Edward Jones for your local Edward Jones financial advisor. Edward Jones, member of the SIPC.