How to Prepare for Your First Talk with a Financial Professional: Meeting Checklist

Creating a comprehensive financial strategy is an important step to help you achieve your financial goals. It involves setting a roadmap that includes your income, savings, investments and spending habits. A well-crafted financial strategy can help you manage your money, prepare for emergencies and ensure a comfortable retirement.

Meeting with a financial professional can provide valuable guidance. These professionals can navigate complex financial decisions and identify growth opportunities. Use this meeting checklist with your financial professional to come prepared and feel confident with the right questions.

Come prepared with information

1. Gather your financial information. Start by compiling all relevant financial documents, including bank statements, investment accounts and debt information. Having a clear picture of your current financial situation allows your financial professional to provide personalized advice.

2. Set clear goals. Identify what you want to achieve financially. Are you focused on retirement planning, debt reduction or investment strategies? Setting specific, measurable goals will guide discussions with your financial professional.

3. Understand your budget. Take time to look over your income, expenses and savings. Knowing where your money goes each month is key. Read our blog to see how a financial review can help your personal finances.

Read our blog to see how a financial review can help your personal finances.

Know these financial terms

Assets and liabilities

• Assets are valuable items you own including cash, investments, real estate and personal property. Assets can be classified as liquid or non-liquid, depending on how easily they can be converted into cash.
• Liabilities are debts or obligations you owe counting mortgages, car loans, student loans and credit card debt. Understanding your liabilities helps manage debt and plan for repayment.

Net worth

• Your net worth is the difference between total assets and total liabilities. It reflects your overall financial health. Knowing your net worth helps you track your financial progress and set realistic goals.

Investment types

• Stocks: Shares representing ownership of a company that offer the potential for high returns with higher risks.
• Bonds: Loans made to governments or corporations that pay interest over time. Bonds are considered safer than stocks but have lower returns.
• Mutual funds: Pooled funds from multiple investors to create a diversified portfolio that is managed by professionals.
• Exchange-Traded funds (ETFs): Similar to mutual funds but traded like stocks, offering diversification with lower fees.

Compound interest

• Compound interest is the interest calculated on the initial principal and accumulated interest. The earlier you start saving or investing, the more you benefit from compound interest.

Retirement accounts

• 401(k): An employer-sponsored retirement plan that allows employees to save and invest a portion of their paycheck before taxes. Many employers offer matching contributions.
• IRA (Individual Retirement Account): A personal retirement account offering tax advantages and tax-deductible contributions.
• Roth IRA: Similar to a traditional IRA but funded with after-tax dollars that allows for tax-free withdrawals in retirement.

Life insurance

• Provides financial protection for your loved ones in the event of your death. Life insurance can cover expenses like funeral costs, debts and living expenses.

What to expect during the meeting

Your financial professional will start by assessing your current financial situation and reviewing the information you provided. The goal of this initial assessment is to understand where you stand financially and identify areas that may need improvement. Once the assessment is complete, you’ll move into the goal-setting phase. You’ll discuss your financial goals, risk tolerance and where you envision yourself in the future. This may include saving for retirement, buying a home, funding your children’s education, building an emergency fund and more.

Next, an action plan will be developed including recommendations on how to allocate investments, manage debt and save for future needs. Financial professionals will take personal risk tolerance into account when determining which investments fit your goals and comfort level with market fluctuations.

To reduce risk and achieve long term growth, financial professionals diversify investment portfolios across different asset classes, such as stocks, bonds and real estate. Planning your financial future is an ongoing process, which is why follow-up meetings are key to monitoring progress and adjusting the action plan as needed.

Have questions in mind

Establishing a foundation of trust is key to building a successful relationship with your financial professional. It’s important to be prepared with questions to assess your financial professionals’ skill set and build confidence in their ability to meet your needs.

Here are some questions to consider asking during your first meeting.

What are your credentials and experience?

Ask about their certifications (e.g., CFP, CFA) and educational background to gauge their experience. How many years have they worked in the industry and what areas do they focus on?

What is your fee structure?

Ask how they charge for services. Is it hourly rates, flat fees or commissions? Ensure they clearly explain their fee structure, helping you understand potential conflicts of interest.

What is your investment philosophy?

Ask about their investment strategy and how they manage risk in your portfolio.

How do you prefer to communicate?

Discuss how often you will communicate to stay on track with your financial goals.

Take the first step

Being prepared for your first meeting with a financial professional can drastically improve your experience. By gathering necessary information, understanding key financial terms and asking insightful questions, you can lay the groundwork for a successful collaboration.

Take the first step toward building your financial future by using this meeting checklist as a guide with your financial professional.