Investment Management Review with Your Financial Advisor

Reviews are an important part of your asset management process. Your financial advisor should discuss how your investment management plan has performed, if it is still in line with your goals, if it is addressing any concerns you have, and make sure that you understand and feel confident about your plan.

Because your investment management review is so important, knowing what to ask is a must. In the following two blogs, we will outline the three big questions you should ask in order to get a full picture of your finances, whether you’re working with us, or with someone else.

Question 1: How did we do?

  • How did my investment portfolio perform?
    • Your investment advisor should be able to provide a detailed summary of how your portfolio performed and relate that to the overall markets.
  • What caused under-performance/over-performance?
    • It is important to understand why your portfolio performed the way it did. Did it meet your expectations, or did it miss the mark? Make sure you understand why it performed how it did.
  • What were my total all-in fees this year?
    • Asking for “all-in” or “total” fees will help ensure you learn about all the fees you were charged. Do you pay transaction charges? Are there fees within any funds you own? Also review how your investment advisor is compensated.

Question 2: Do we need to make some changes?

  • Identify any required changes due to your personal financial situation
    • These are changes like taking financial responsibility for a family member, buying a second home, or getting ready for retirement. Communicating theses new situations to your investment advisor is very important.
  • What adjustments does your investment advisor recommend?
    • Your financial advisor may recommend a change in asset allocation or an adjustment to your investments. If this happens, ensure he or she clearly explains why. Changes may come from investment performance, market outlook, or changes in your risk tolerance or personal situation.
  • What will any proposed changes do to your taxes?
    • If your account is taxable, make sure that you understand the tax ramifications to any change to your investment management plan. Also consider whether assets are being placed strategically in select accounts for tax efficiency.

Question 3: What is the plan for the coming year?

  • Before your asset management review ends, you and your investment advisor need to finalize the coming year’s plan. You should both agree on a road map that addresses both your communications plan and investments. Advanced Wealth Advisors recommends quarterly statements in addition to an annual review at minimum.

At Advanced Wealth Advisors, we will help you clarify all of these investment management questions and more. Your success and comfort are our first priorities. Contact one of our financial advisors in Naples or Fort Myers, FL by clicking here.