Getting a financial review from an investment advisor

Annual or periodic investment reviews can be helpful for most people to assess the performance of their investment portfolio and to make any necessary adjustments to their investment strategy. Here are a few things that most people might benefit from when having an annual or first-time review for investment advisory purposes:

  1. Investment performance review: An investment performance review allows the investor to assess how their investments have performed over a specific time period. This can help the investor to determine if their investments are meeting their financial goals and to identify any areas of underperformance.
  2. Asset allocation review: An asset allocation review allows the investor to assess the mix of different asset classes in their portfolio, such as stocks, bonds, and cash. This can help the investor to ensure that their portfolio is properly diversified and that their investments are aligned with their risk tolerance and financial goals.
  3. Risk assessment: A risk assessment can help the investor to identify and evaluate the potential risks associated with their investments. This can include both market risks, such as the risk of loss due to changes in market conditions, and non-market risks, such as the risk of fraud or mismanagement.
  4. Investment strategy review: An investment strategy review allows the investor to assess the effectiveness of their investment strategy and to make any necessary adjustments. This can include reevaluating the investor’s financial goals and risk tolerance, as well as identifying any potential changes in the investor’s financial circumstances, such as an upcoming retirement or the purchase of a new home.

Financial advisors may use a variety of tools to offer annual or first-time investment reviews and plans. Some common tools might include financial planning software, portfolio analysis tools, and risk assessment tools. It is important for investors to carefully consider their specific needs and goals and to work with a financial advisor who is able to provide the necessary expertise and resources to support their investment objectives.

Is it considered a best practice for a financial advisor to provide a roadmap for future investment concepts?

It is generally considered a best practice for a financial advisor to provide a roadmap or investment plan that outlines the investor’s financial goals and the steps needed to achieve those goals. A well-crafted investment plan can help to provide clarity and direction for the investor and can help to ensure that their investments are aligned with their financial objectives.

An investment plan typically includes:

  1. A detailed assessment of the investor’s financial situation, including their income, expenses, assets, liabilities, and insurance coverage.
  2. A set of clear, specific financial goals that are tailored to the investor’s individual circumstances and that reflect their risk tolerance and time horizon.
  3. A diversified investment portfolio that is designed to meet the investor’s financial goals and that is appropriate for their risk tolerance and time horizon.
  4. A comprehensive risk management plan that includes strategies for mitigating potential risks, such as market risk, credit risk, and inflation risk.
  5. Regular review and monitoring of the investment plan to ensure that the investor is on track to achieve their financial goals and to make any necessary adjustments as their circumstances change.

In summary, it is generally considered a best practice for a financial advisor to provide a roadmap or investment plan that outlines the investor’s financial goals and the steps needed to achieve those goals. This can help to provide clarity and direction for the investor and can help to ensure that their investments are aligned with their financial objectives.