As part of regularly scheduled maintenance, there are things people should do monthly, annually, and seasonally: dental cleanings every four to six months, oil changes at 7,500 miles or so, and an annual physical. Wealth management is no different. An investor should have regularly scheduled meetings with their advisor to ensure that the portfolio is in step with both long and short-term financial goals. But how often should those meetings occur? The answer isn’t so simple. It depends on various factors, including life circumstances, financial goals, and the financial complexity of the portfolio. Here are some considerations to help investors determine the optimal meeting schedule for their needs.
Initial Consultation and Goal Setting
If the investor-advisor relationship is new, meetings or conversations should occur more frequently to evaluate the investor’s financial situation, determine immediate action points, set goals, complete account transfers or set-ups, and develop a personalized financial plan. These meetings could happen monthly, every six weeks, or quarterly for the first year until the plan takes shape. The advisor’s contract should outline their fee schedule, but they will likely communicate cost terms upfront. They can be paid annually, per meeting, or through a fee structure. In any case, these early meetings are important to doing business and solidifying the relationship.
Regular Review and Monitoring
Once a financial plan is set, an investor and advisor should meet annually. A lot can happen in a year, so it’s worth the time. During this meeting, an advisor reviews the current state of their investor’s affairs and anything significant that occurred in the previous year with the investment accounts. They will also discuss any financial changes on the investor’s end, and whether they are on track for their goals or should adjust them. It’s a time to strategize for the next year and address any questions or concerns.
Milestones, Transitions, and Major Life Events
Any number of life events can impact an investor’s financial picture. Marriage, career changes, family planning, a move, or retirement transitions warrant additional contact between investor and advisor. Additionally, an advisor should know of any major credit-financed purchases their client makes, as buying a home or a car can result in a higher debt-to-income ratio and influence the overall financial plan. Finally, clients should meet with their advisor if they come into substantial funds, an inheritance, or asset sale proceeds. Investors should lean on their advisors to help them navigate the monetary implications of these significant life changes.
Market Volatility and Economic Trends
Financial markets can be unpredictable and experience fluctuations from time to time. High market volatility can cause investors considerable uncertainty and unrest. During turbulent times in the market, an investor should feel comfortable reaching out to their financial advisor. Some advisors will contact their clients proactively to provide insight, guidance, and reassurance.
Personal Preference and Comfort Level
Some people desire more contact with their advisors than others. Those with complex portfolios may want more frequent meetings to manage risk and individual stocks. Others have a set-it-and-forget-it strategy, opting only for the annual check-in. Some clients like to feel more active and involved in their wealth management plan and want to meet quarterly. Whatever the preference, it is personal and reflective of circumstances, preferences, and comfort level.
Investors should meet with their wealth planner at least once a year for general maintenance, goal setting, and modification to their plan. Additional meetings occur as necessary and depend on several variables. However, the relationship between investor and advisor is highly individualized and can vary based on client circumstances and preferences. A productive and collaborative partnership relies on regular communication between both parties surrounding significant points of change in financial condition. Staying connected enables advisors to empower clients to achieve their financial aspirations confidently.
If you are ready to get your retirement strategy plan started, sign up for a complimentary review of your finances at SHP Financial here.
