How Often Should I Meet With My Financial Advisor? - Spinnaker Investment Group (2024)

FAQs

How Often Should I Meet With My Financial Advisor? - Spinnaker Investment Group? ›

You should meet with your advisor at least once a year to reassess basics like budget, taxes and investment performance.

Experts recommend that you meet at least once a year with a financial advisor to discuss your investment plan and review your risk tolerance and cash flow objectives.

Generally, having between $50,000 and $500,000 of liquid assets to invest can be a good point to start looking at hiring a financial advisor. Some advisors have minimum asset thresholds. This could be a relatively low figure, like $25,000, but it could $500,000, $1 million or even more.

Not everyone needs a financial advisor, especially since it's an additional cost. But having the extra help and advice can be paramount in reaching financial goals, especially if you're feeling stuck or unsure of how to get there.

Industry studies estimate that professional financial advice can add up to 5.1% to portfolio returns over the long term, depending on the time period and how returns are calculated. Good advisors will work with you to create a personalized investment plan and identify opportunities to help grow and protect your assets.

The vast majority of universities recommend meeting your academic advisor at least once a semester. There may be times when you need to speak to them more often than that, but you shouldn't leave too long between advising sessions.

Experts say it makes sense to hire a financial advisor in the following circ*mstances: You don't have the time or inclination to manage your finances. You experience a major life event, such as a marriage, divorce, loss of a spouse, birth of a child, relocation or change in your employment status.

When it comes to investing, the 80/20 rule asserts that 80% of your investment returns — or losses — come from only 20% of your assets. You should take this with a grain of salt — it's definitely not a scientific rule, and it's impossible to predict if your investments will behave that way.

Limited availability: Financial advisors may not be available at all times, which can be a problem if you need urgent advice or assistance. Risk of scams: unfortunately, there is a risk of financial scams in the industry, and it's important to be aware of this risk when working with a financial advisor.

What to avoid in a financial advisor? ›

A disadvantage of a fiduciary is that fiduciary advisors are often more expensive than non-fiduciary advisors as they charge higher market rates.

Just like working with a doctor or therapist, working with a financial advisor requires a level of transparency and candor that can be daunting. The more you share with your advisor, the better they'll be able to do their job and help you optimize your financial life.

But, if you're already working with an advisor, the simplest way to determine whether a 1% fee is reasonable may be to look at what they've helped you accomplish. For example, if they've consistently helped you to earn a 12% return in your portfolio for five years running, then 1% may be a bargain.

Assess the Complexity of Your Advisory Relationship

Based on the advisory fee data presented in the previous section, 2% might seem high, especially if it doesn't include the underlying investment fees that go to third-party asset managers.

As a result, the 8% rate of return is a surface-level indicator of the investment's performance. In an environment with high inflation and taxes, your real return could be next to nothing. That said, investments can still be an excellent source of retirement income.

Every relationship is different, and because financial planning is such a personal issue, there's no one-size-fits-all answer for how often you should talk to your adviser. But financial planner Don Grant says there should be a review at least semi-annually.

There are Advisors who meet with clients on an Annual basis. There are Advisors who meet with clients on a Weekly basis! There is not a 'Right' answer. There is a clear bell curve with Quarterly Meetings a clear mid-point.

Client contact.

Another requirement of the safe harbor is that each client be contacted at least annually to determine whether his or her financial situation and/or investment objectives have changed.