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Having a financial planner doesn’t mean you have to wash your hands to take care of your finances. In fact, having a financial planner is about managing a relationship with someone who holds the very important keys to your proverbial castle. From managing budgets and investments to insurance and tax strategies, it’s important to keep an eye on your financial advisor, within reason. But how often should you chat with them? (This tool can help you find a planner that meets your needs.)
What is the minimum amount you should talk to your financial advisor about?
Every relationship is different, and because financial planning is such a personal matter, there is no single answer to how often you should talk to your advisor. But financial planner Don Grant says there should be an in-person review at least semi-annually and given the pandemic climate, that could mean WebEx or a phone call. And Grace S. Yung, wealth manager and CEO of Midtown Financial Group, says depending on the complexity of your financial plan, you might even chat a little less frequently. “Once or twice a year may be enough for some while others may require more attention,” Yung explains.
Bottom Line: This frequency does not need to be constant from year to year and can vary depending on the current stage of your life. “There are years when you talk to your advisor every month, and there are years when just one recording is just fine. I think 2-3 times a year is a good average, ”says Jen Grant, financial planner at Perryman Financial Advisory. (This tool can help you find a planner that meets your needs.)
What should you do if you want to talk to your financial planner more often?
Your financial advisor may not realize that you want to talk more. “If you need more recordings, ask for it,” says Yung, who adds that the frequency of communications should be discussed in advance with an advisor. “Some clients may need more communication, especially if they have tax issues that need to be maintained throughout the year,” says Grant.
If you feel weird asking them for more time, don’t, says Grant, “Take the time to check in. The more your counselor knows about the changes in your life, the better the advice you will receive when you have a question. . Plus, she says, one of the best reasons for having a financial advisor is that you can delegate the details and concerns. “Your advisor will make sure your investments match your risk tolerance and goals. They’ll make sure you don’t miss an important due date, like contributing to an IRA or taking a minimum required distribution, ”says Grant.
How often is it too frequent to call your advisor?
Of course, getting involved is encouraged, but when are you getting too involved or calling your advisor too often? “If you call to get their thoughts on the latest CNBC segment, you might be too involved. If you question every trade and position, ask yourself if it’s because you have a hard time letting go or if it’s because you don’t trust your advisor, ”says Grant.