Meeting with a "financial advisor" sounds like something only wealthy people do — people with enough money to own multiple homes, have stock options, millions of dollars in investments and foreign bank accounts.
But that perception is very, very wrong. You don't have to be wealthy to meet with an expert who can help you save for retirement, pay less in taxes and understand how to make your money work for you.
How do you know if you're ready to meet with a financial advisor? Here are a few questions to ask yourself that can provide clues that it's time to pick up the phone, send an email or stop by CommonWealth One to set up an appointment.
Are you having trouble setting specific financial goals? Do you know how much you'll need to save up for retirement or for that dream vacation? Do you want to start a business someday, or even just own your own house (or two)? All of those things cost money, and it can be difficult to figure out on your own how much you'll need to accomplish any of them. A financial advisor can help you figure out how much to save and where to invest it, so your money is ready for you when you're ready to spend it.
Are you thinking about retirement (even if it’s decades away)? It’s never too early — or too late — to plan for retirement. Whether you’re wondering how much you should be saving in your 20s, or you’re just a few years away and unsure if you're on track, a financial advisor can assess your current situation and map out a clear path to help you retire comfortably.
Do you feel overwhelmed with options from cryptocurrencies to a "boring" index fund? Investing used to be easy. You could just dump your money in a time-based 401(k) and be assured that you'll have enough money to retire someday. But today, there are so many options for investing, depending on how much risk you want to accept, and getting advice from Instagram is not always a good idea. A trained professional can talk to you about risks, rewards, savings, safety nets and much more.
Are you going through a life change? If you're going through a change in your life, from switching jobs to having a baby, getting married, buying your first house or retiring — really, any milestone — meeting with a financial advisor is a smart money move. At any of these points, you'll want to evaluate (or reevaluate) your financial progress, goals and plans.
Do you have investments… but don’t know what they’re doing? Maybe you’ve got a 401(k) at work or a few mutual funds in an IRA, but you’re not really sure how they work or whether they align with your goals. If you’re unsure about asset allocation, risk tolerance, or even what’s inside your portfolio, it’s time to call in an expert. A financial advisor will explain your options in plain English — and help you invest with purpose.
How do you prepare for your first meeting with a financial advisor?
There are really just two things you need to do before your meeting.
- First, you'll want to gather up your financial information, including credit card and bank statements, investment balances, real estate values, debt statements (from your mortgage, car loan, student loans, etc.) and other financial information. This will help give your financial advisor a good sense of where you are on your financial journey.
- Then, you should think about where you want to be in a year, 5 years and 10 years. Think about your dreams and goals, what you want to have, what you want to achieve, and what you want to even leave to future generations. Ideally, your financial advisor will be able to take your information and create a reasonable path and timeline to get from Point A (where you are now) to Point B (where you want to be).
It can be both exciting and a little bit scary to share all of this information, particularly your dreams and goals, with a stranger. But rest assured that your financial advisor will not judge you at all. They're here to help you figure out all aspects of your financial life. Fortunately, the friendly faces at CommonWealth One are here to help. You can get started by filling out the form at www.cofcu.org/plan/financial-planning/investment-services.
We look forward to seeing you soon!
