Key Questions for Your Financial Advisor

By Brent Meyer — SafeMoney.com Founder & Editor Reviewed by Licensed Financial Professionals  |  SafeMoney.com — Trusted Since 2011  |  Updated Regularly Quick Answer: Discover essential questions to ask your financial advisor during your annual review. Ensure your retirement plan is on track. Learn more at SafeMoney.com. As the end of the year approaches, now is an excellent time for you to schedule a meeting with your financial advisor . An annual review of your financial situation is an ideal reason to come together. Not only can you review the financial progress that you made during the year. Your annual review meeting also provides the opportunity to go over your investment portfolio, insurance coverage, and overall financial plan. It’s a crucial moment to see whether any changes are needed, especially if your circumstances have changed somehow. Of course, money matters and retirement are a moving target . So, you can also set new goals and update your estate plan if necessary. All of that being said, if you do have a meeting on the books, you might be unsure of the “ballpark” questions to ask your advisor during your financial review. Below are four questions to help guide your discussion and make the most of your annual review meeting time. Questions to Ask Your Advisor During Financial Review At a minimum, ask these four questions to your financial advisor in your annual review: 1. What can I do to reduce my tax burden, both for myself and my heirs? If unplanned for, taxes can take a chunk out of a portfolio. In one study by Lincoln Financial, nearly one-third of all income earned by high-income retired households was paid toward taxes. Another study by Nationwide Retirement Institute found that many retirees have larger-than-expected tax burdens. Nearly half of retirees in that survey wished they had planned better for taxes in their retirement. One in 4 retirees mentioned they were paying thousands more in taxes than they anticipated. Make Your Retirement More Tax-Wise Fortunately, there may be a number of things that you can do to reduce your taxes in retirement. Maybe you worry about future tax rates, particularly as political uncertainty and growing national debt weigh in. Then you can convert a portion of one of your traditional IRAs or retirement plans to a Roth account. While that counts as an upfront cost for taxes, you might benefit from ‘net savings’ on reduced tax liability for your portfolio in the f