3 Steps to Prepare for Your First Financial Advisor Meeting
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Meeting with a financial advisor for the first time can be intimidating, but it doesn’t have to be. The main goals are to get a picture of your financial situation and see if you and the advisor are a good fit.
To make the most of your time, this three-step guide covers what questions to ask both yourself and the advisor, what documents to bring and how to verify the advisor is right for you.
» Still need an advisor? See our picks for the year's best financial advisors
1. Focus your goals
Ask yourself:
What is my top financial priority right now?
Do I have any major life events on the horizon?
What does financial security look like for me?
If you don't have a financial goal to work toward — or if managing your finances feels overwhelming — a good starting goal can be retirement. In time, as other priorities become apparent, your financial advisor can readjust.
» Find more financial advisors near you
2. Confirm that your financial advisor meets your needs
Ensure your financial advisor is prepared to work with you. This first meeting can help you learn more about their experience and skillset, as well as what types of clients they specialize in working with. Ask these questions:
What are your credentials and experience? This question can reveal areas of expertise and whether the advisor is a fiduciary. Confirm the advisor’s credentials with the issuing organization (such as CFP.net for CFPs). Search for the advisor in FINRA’s BrokerCheck database to confirm they’re authorized to provide investment advice and whether they have any past regulatory infractions.
What do you specialize in? Some financial advisors only create financial plans, while others only manage their clients' investment accounts. Some provide additional services such as tax strategy, estate planning or more. If they don’t provide what you need, it may not be a good fit.
What types of clients do you typically work with? Not every financial advisor is equipped to work with every client. Ask about who they currently work with, looking for details such as age, profession, income range, financial goals and current situation to see how much they align with yours. Some of these details may be on their website as well.
How do you get paid? Advisor fees vary by service and even location. It’s common for advisors to charge a percentage fee for managing your investments (this is often called an assets under management fee or AUM fee), as well as a flat or hourly fee for specific services, such as creating a financial plan or projection. Make sure you understand how your advisor charges for their work, and once they have a better picture of your financial needs and situation, ask for an estimate.
🚩 Potential red flags in a financial advisor
We recommend searching for another advisor if you experience or notice any of these things:
Evasiveness about fees.
Promises of guaranteed returns.
Blanket product recommendations before fully understanding your financial goals and situation.
Lack of fiduciary status (fiduciaries are legally required to put your interests first).
No registration with the SEC or FINRA.
3. Prepare your financial documents
Having these documents on hand can allow your financial advisor to see your current financial situation. Many advisors also have a secure digital portal where you can upload documents before or after the meeting.
Income
Federal and state tax returns from the last two to three years.
Recent pay stubs (include your partner’s as well, if finances are shared).
Other income documentation, including for restricted stock units, bonuses, 1099s and freelance or business income.
Savings and investment accounts
Bank account statements.
Brokerage account statements.
Retirement account statements, including employer-sponsored plans and individual IRAs.
Health savings account statements.
Equity compensation or deferred compensation information.
Debts
Mortgage statements for your home or other properties.
Student loans balances and repayment schedules.
Any documents relating to auto loans, personal loans and credit card balances.
Other financial documents
Life insurance coverage information.
Disability insurance coverage information.
Health, homeowners, renters, auto and umbrella coverage information.
Estate planning documents, such as a will, trust, healthcare directive or power of attorney.
Many financial advisors use third-party platforms to collect, maintain and analyze your financial information, and they may ask you to use the platform yourself to enter or review your information. Ask for a demo so you can see if the platform is hard to use.
Other questions about your first meeting
What if I don't have all of these documents?
It’s okay to bring what you can find and provide rough estimates for the first meeting. Your advisor can give more guidance.
Should I bring my spouse or partner?
If finances are shared, it makes sense to include your partner in the meeting. Decisions about insurance, retirement and estate planning affect both of your financial futures.
Is the first meeting with a financial advisor free?
In many cases, the first session is complimentary and intended to be a fit check, but always confirm before you attend.