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How do advisors approach their work? What will our meeting be like? How will I find out about the performance of my portfolio and if I'm on track with my goals?
Selecting, meeting and working with your advisor
Selecting the right advisor
Advisors possess different professional philosophies; therefore, consistency with your objectives and risk tolerance is important. Understanding an advisor's philosophy and investment strategies up front can help you select the right relationship.
Discovering your needs
Help your advisor understand your needs by communicating where you are financially, where you want to go and what special situations need to be |
considered. Your advisor may ask you about these topics during your initial meeting.
Preparing a financial plan
Developing an investment strategy
Based on your investment objectives and risk tolerance, your advisor will prepare an investment strategy. Ask you advisor to describe this strategy and how it is intended to provide an appropriate balance of investment vehicles.
Ongoing portfolio management
Your advisor should make investment decisions for your account based on your agreed-upon investment strategy, monitor your account, keep you apprised of salient news regarding your holdings, and buy and sell securities to keep your strategy on track. |
Receiving statements and performance measurements
The broker/dealer where your assets are held must provide periodic statements of your accounts. Your advisor may provide periodic reviews and performance commentaries as well.
Rechecking your master plan
Your advisor will typically meet with you annually for a formal portfolio review to verify that your investment strategy is on track with your goals. Decide together how often you want or need to meet (e.g., more frequent communication during the first year, tapering to fewer meetings as your relationship strengthens). |
