Did you know that almost 90% of Americans have concerns over inflation? Nearly half of the surveyed adults said they would cut back on eating out to help save money. With consumer prices sky-rocketing, it may be time to sit down with your financial coach and go over your investments.
Whether you have used one in the past or are just starting, we have put together a complete guide on eight questions you should ask your financial planner.
Are you still interested? Keep reading and find out how you can start 2022 off on the right foot for your investments.
What Is a Financial Advisor?
A fee-only financial advisor works with you on setting goals and planning for the future without accruing commission on investments or products. They are hired to help you customize a plan that works with your lifestyle and current financial situation.
Financial advising is more than advice on finances. These individuals can help you navigate challenging decisions, move money, and set goals. This person can also help you perform financial trades, set up accounts, and build an investment. A fee-only financial planner gives you set rates and upfront costs, so you know exactly what you are getting in return.
1. What Are Your Goals?
As you meet with your financial coach, you should first discuss what your goals are. Are you retiring soon? Do you have children?
If you expect to work another 20 to 30 years, you may have room to make some riskier moves rather than someone retiring within the next ten years. Ultimately, if your goal is retirement, a new house, or financial security, your financial planner needs to know.
Additionally, your financial planner will likely encourage a more thorough thought process. You want your goals specific and obtainable, and regularly meeting with your advisor can help you reach benchmarks.
2. What Is Your Annual Spending?
Your annual expenditures can tell your financial advisor a lot. For example, do you spend a lot of money on entertainment and are looking for areas that you can save?
A solid idea of where your money goes each year can highlight areas where you may want to cut back. Additionally, it also gives your financial planner an idea of how much you need to spend each year. Mortgages, insurance, basic necessities, and other items require your money.
It is a critical piece in your future planning.
3. Have There Been Recent Financial Changes?
If your budget suddenly changes from cuts or gains in your income, you will need to let your financial advisor know. Financial changes open the discussion to your long and short-term goals. You may need major adjustments to your monthly budget and investments with income changes or inflation.
4. What Is Your Retirement Goal?
Retirement is something everyone can start planning for at any age, but the age you aim to retire can make a difference in your investments. Additionally, riskier investments are typically more suitable for young to middle-aged adults.
In many cases, you can let your money grow and not worry about it too much. The closer you get to retirement, or if your retirement goal changes, notify your local Cincinnati financial advisor.
5. Budget Planning
What is your weekly, monthly, and annual budget? If you don’t have one, this is another great topic that your financial coach could learn more about you. Before starting a budget, your coach will want updated numbers on your income and expenses. Your financial coach can also help you identify areas of expenses that you may have overlooked, like medical bills.
Medical bills, premiums, and emergencies can significantly impact your budget. Not only can a Cincinnati financial planner help you identify expenses, but they can assist with enrolling for health coverage, including Medicare.
6. How To Protect Your Money
You have likely heard the saying, ‘high risk, high reward.’ For some, the risk is worth the potential losses or wins. At the end of the day, you want the bulk of your money somewhere safe with a long-term return. If you don’t know where to start, an advisor can look at your overall risks, age, and goals.
They can also provide advice on other safety measures you can take and how to identify fraud.
7. Financial Concerns
All other financial concerns are free games when it comes to financial planning. Are you worried about paying for your kid’s college? Do you plan on selling your home?
Do you have concerns over your finances and the market? Changes in market trends and the presidency have made many individuals change their financial routes.
COVID-19 has created turbulence in the stock market with the S&P closing with a gain of close to 30% at the end of 2021. If you need help understanding the market, and how you should invest, your financial planner can educate and advise.
Financial concerns arise on the go. Setting up a safety net or emergency funds is critical.
Your advisor won’t know your top concerns if you don’t share them, so take time and delve into your worries and fears. While it may sound like a therapy session, your financial coach is there to help customize your finances.
Hire A Financial Coach
A financial coach is critical for the health of your finances. Whether you earn well over six figures or are working through financial concerns, our Cincinnati wealth management firm can help you set goals.
We work hard, so you don’t have to, and our fee-only system lets you know exactly what you are paying. Contact us today and let one of our skilled team members help you start financial planning!