Preparing for your upcoming meeting with your financial advisor is not just about ticking boxes, but should be considered as an opportunity to deepen your understanding, refine your strategy, and strengthen your financial position. As a seasoned investor, your perspective carries weight, and the questions you bring to the table can shape the trajectory of your financial journey. Let us take a look at some important talking points, considerations and questions you need to prepare to ensure you get the most out of the meeting you have with your financial adviser.
Revisiting your Financial Goals and Investment Horizons
Begin by revisiting your financial goals and investment horizon. Have they evolved since your last meeting? Consider any changes in your personal circumstances that may impact your goals or investment strategy. Share these insights with your advisor to ensure your financial plan remains relevant and aligned with your aspirations.
Assessing Risk Tolerance and Portfolio Alignment
How much risk you are exposed to within your investment portfolio is a strategic consideration. Investors usually invest in more risky assets, with higher returns, if their investment time horizon is longer because they have time to recover from market downturns. Other factors such as the ever-changing economic and global investment landscape also need to be considered in the context of the risks you are willing to take with your investments.
Evaluate your own risk tolerance in light of recent market conditions and possible changes to your personal circumstances and consider whether your risk appetite might have changed. Discuss with your advisor whether your portfolio reflects your current risk tolerance and if any adjustments are necessary to better align with your comfort level and financial objectives.
Reviewing Portfolio Performance and Economic Outlook
Discuss the performance of your portfolio given the current market and economic conditions. This is not only an opportunity to assess the performance of your portfolio, but also a chance to look at how each investment within your portfolio is doing. Your portfolio will be made up of different unit trusts, asset classes and products and each will have different circumstances and returns to consider. Compare the performance of your investments not only to your expectations and how they did in the past but also consider how alternative and/or competing funds are performing. Use this as an opportunity to engage in a meaningful discussion with your advisor, seeking their expert opinion and expectations for the future.
Evaluating Portfolio Diversification and Risk Exposure
Evaluate how well your portfolio is diversified and identify any areas of concentration or potential risks. Take the opportunity to discuss with your advisor which risks your portfolio may be exposed to and explore strategies to manage these risks effectively. Ensure your portfolio is structured to withstand market volatility and achieve long-term growth.
Exploring New Investment Opportunities
Discuss possible new investment opportunities or products to either invest new funds into or for diversifying your existing portfolio. Explore innovative strategies that align with your financial goals and risk tolerance. Be open to your advisor’s recommendations and insights into emerging trends and opportunities in the market.
Understand Fees and Costs
Gain clarity on the fees and costs associated with your investment products and advisory services to ensure transparency and alignment with your financial objectives. By understanding the true cost of your investments, you can make informed decisions that maximise value and minimise risk.
Approaching your financial advisor meeting with a strategic mindset empowers you to make informed decisions and optimise your financial strategy for the future. By focusing on key considerations such as financial goals, risk tolerance, portfolio performance, diversification, new opportunities, and costs, you can collaborate effectively with your advisor to navigate market uncertainties and achieve your long-term financial objectives. Together, you can build a resilient and diversified portfolio that reflects your unique needs and aspirations.
