Meeting with a financial advisor for the first time can feel a little like working with a personal trainer. You might have some trepidation, but it becomes progressively easier as you adjust to the process. To get the most out of your first meeting, here are some important considerations and things to ask.

What to know before meeting with a financial advisor

Like any important decision, it takes a little research to find the best advisor for your circumstances. Before you schedule a meeting with a financial advisor, take some time to compare to see who best fits your needs. Do you have questions about your investment portfolio? Are you worried about budgeting? Do you want to get a retirement plan in place? Make sure the advisor specializes in your specific concerns. Many will answer questions via email before you set up a meeting. Use those answers to help form your decision.

Information your financial advisor needs

Depending on the kinds of services you’re looking for, a financial advisor may need to know:

• The amounts in your checking, savings, and retirement accounts.
• Your total debt balance, including mortgage, auto loans, student loans, credit cards, personal loans, lines of credit, and more.
• Your investments, any pension or stock options, and whether your company matches your retirement plan contributions.
• Your savings goals, like purchasing a home or paying for your child’s education.

What to bring to your first meeting

• Come prepared with a notebook and questions you may have. Take notes on what the advisor says.
• Print out statements from your banks, lenders, and investment providers.
• Bring copies of insurance policies and anything else specific to your goals.

Questions to ask

During your initial meeting, ask the financial advisor about:

• Their compensation. Some advisors receive a set fee, others receive commission based on the products they offer, while others deduct a percentage (typically 1%) of the total money they’re managing annually.
• The specific services they provide. Make sure they’re well-versed in tackling the issues most important to you.
• Their experience. Have they worked with others with similar priorities and concerns?

What to ask your financial advisor each year

Whether your life stays the same or changes drastically, it helps to meet with your financial advisor once a year. At the follow-up meeting, ask:

• Has anything cropped up since our last appointment that could delay (or fuel) my plans? For example, has a recent market downturn delayed my retirement plans or saving for my child’s college?
• How has my portfolio performed year-over-year?
• Do I have the right insurance coverage to make sure my family is covered in the event of an emergency?
• What trends or regulations should I be aware of?

If you don’t understand something, ask for clarification. A good financial advisor won't judge you for posing questions or for revealing less-than-flattering details about your financial situation.