WiserAdvisor – Blog

Main Menu

  • Main
  • Financial Advisor Guide
  • Financial Planning
  • Retirement Planning
  • Education Planning
  • Investment Management
  • More
    • Personal Finance
    • Estate Planning
logo
I Want to Take Charge.
HELP ME FIND AND COMPARE TOP VETTED FINANCIAL ADVISORS IN MY AREA.

FINRA/SEC Registered Advisors

  Your Information is Safe and Secure

WiserAdvisor – Blog

  • Main
  • Financial Advisor Guide
  • Financial Planning
  • Retirement Planning
  • Education Planning
  • Investment Management
  • More
    • Personal Finance
    • Estate Planning
Financial Advisor Guide
Home›Financial Advisor Guide›The Importance of Sharing Your Complete Financial Information With Your Financial Advisor

The Importance of Sharing Your Complete Financial Information With Your Financial Advisor

By WiserAdvisor Insights
December 1, 2020
2359
0
Financial Advisor

Financial advisors can be of great help when it comes to planning for a financially stable and comfortable life. They can help you streamline your expenses, save systematically, and help you invest and grow your wealth. When it comes to hiring a professional financial advisor, transparency and honesty are two of the most important aspects to look for in your financial advisor. You must also keep in mind that the more open and detailed you are with your advisor, the more your advisor can help create a plan that best suits your needs. Hiding or omitting information can limit their ability to offer you the right financial guidance. Therefore, it is essential to share complete and accurate information with your financial advisor.

5 important reasons why sharing your complete information with your financial advisor is critical:

1. It helps them understand your relationship with money

Everyone has a different way of dealing with money. Some people are primarily savers, putting every penny they earn in the bank. Others could be living from paycheck to paycheck with no emergency funds to fall back on. Sharing information on how you view money and what your spending habits are can enable your financial advisor to understand you better. It can offer them a deeper insight into your present needs and future requirements. For instance, someone who finds it hard to save can invest in an account with strict withdrawal rules so that they are not tempted to use their funds before their maturity date. This will allow them to save steadily and secure their future, regardless of their urge to spend in the present. Knowing this information will help the financial advisor bring in some financial discipline into their life and routine.

2. It helps them offer you useful advice

Information such as your income, future goals, past and ongoing debts, etc. can permit your financial advisor to offer you pertinent advice. These aspects play a crucial role in deciding the right course of action in financial planning. If you are honest about your current financial standing and where you intend to be in the coming years, your financial advisor can find relevant investments that can help you reach your goal. Another essential topic to discuss with your financial advisor is your risk appetite. This is something that is bound to change with time and other life events. However, as long as your financial advisor is aware of your ability and preference to take risk, your portfolio can be a balance of stocks, bonds, and other investments to ensure that you save, grow wealth, and yet conserve your peace of mind.

3. It helps them know your family composition and needs

Depending on whether you are married, divorced, widowed, or single, your financial necessities will also differ. Moreover, if you have dependent children or children with special needs, you would need to account for their education and medical expenses. Your family composition and their dependency on you can alter your financial plan to a great extent. This is why it is vital for you to discuss their financial involvement in your life with your financial advisor. Many major and minor life events can impact your financial goals, budget, and the ability to invest.
In the case of a divorce, your financial advisor can help in minimizing the loss assets. They can also suggest better savings instruments to save for your child or step-children in the case of remarriage. Moreover, they can enable better estate planning and help with setting up a trust fund, power of attorney, legal guardians for minors, etc.

4. It helps them ensure short-term and long-term liquidity for you

While your personal life affects your financial plans, your professional life too has a considerable effect on it. Every promotion, salary hike, job loss, or career change can impact your goals, investment preferences, tax liability, the need for diversification, buying or selling of investments, etc. This requires your financial advisor to be actively involved in the changes in your professional journey. Based on the information you share, they can offer you advice on the best investment options given your existing income and liabilities. They can also ensure that every salary hike is also optimally invested and saved for the future to ensure that your savings grow with time and are able to counter inflation.

5. It helps them reduce your tax burden

As you increase your savings corpus, it is also crucial to make sure that your hard-earned money does not get lost in paying taxes. Property taxes, inheritance taxes, capital gains taxes. etc. can considerably affect your overall financial standing. A financial advisor can offer you ways to reduce this by investing and saving in accounts and funds that facilitate savings and help you reduce your tax liability.

Apart from the points mentioned above, you should also share any instances of financial emergencies, such as using funds for medical treatment. Your financial advisor should be in the loop to ensure that your savings are intact and replenished to ensure long-term liquidity and security.

To sum it up

A financial advisor is a significant person in your journey to financial freedom. But these professionals can only help you if you are honest with them and let them into your life with transparency. Open communications, accurate information, and regular contact is the ideal way to deal with your financial advisor.

If you are looking to hire a professional in your area, you can reach out to financial advisors for all your financial needs.

Tags#financial advisorBondsShort-Term and Long Term LiquidityStockTax Burden
Previous Article

6 Things You Should Know About Investing ...

Next Article

7 Ways You Can Adjust Your Financial ...

WiserAdvisor Insights

WiserAdvisor Insights

A team of dedicated writers, editors and finance specialists sharing their insights, expertise and industry knowledge to help individuals live their best financial life and reach their personal financial goals. We believe that there is no place for fear in anyone's financial future and that each individual should have easy access to credible financial advice.

Related articles More from author

  • Financial Planning

    Here’s All You Need to Know about Net Unrealized Appreciation

    September 15, 2019
    By WiserAdvisor Insights
  • Market-Timings
    Investment Management

    The Advantages and Disadvantages of Market Timings

    May 5, 2021
    By WiserAdvisor Insights
  • Financial-Advisor
    Financial Advisor Guide

    How Can A Financial Advisor Help You Manage Your Finances?

    March 31, 2022
    By WiserAdvisor Insights
  • Financial-Professional
    Financial Advisor GuideFinancial Planning

    How to prepare for a meeting with your Financial Advisor

    July 8, 2019
    By WiserAdvisor Insights
  • Financial Goals
    Financial Planning

    7 Ways to Stay Frugal to Achieve Your Financial Goals

    December 17, 2020
    By WiserAdvisor Insights
  • Retirement-Advisor
    Financial Advisor Guide

    Why Should You Hire a Retirement Advisor?

    August 4, 2021
    By Jonathan Dash

You might be interested

  • Roth IRA
    Education Planning

    Roth IRA: How to Use it For College

  • Financial Planning

    How to know If Index Annuities are right for you

  • portfolio
    Investment Management

    What is a Sleep at Night Portfolio and How Can You Build One for Yourself?

Don't miss out! Get our Helpful Financial Tips Newsletter

  • Popular Posts

  • The benefits of working with a financial advisor - WA

    The benefits of working with a Financial Advisor

    By WiserAdvisor Insights
    July 16, 2019
  • Financial-Professional

    How to prepare for a meeting with your Financial Advisor

    By WiserAdvisor Insights
    July 8, 2019
  • retirement-accounts

    Choosing the Best Retirement Accounts

    By WiserAdvisor Insights
    July 8, 2019
  • Retirement-Planning

    Retirement Planning checklist

    By WiserAdvisor Insights
    July 8, 2019
  • Why investing for goals is the right way of investing

    Why Investing for goals is the right way of Investing?

    By WiserAdvisor Insights
    July 16, 2019
  • Portfolio diversification

    5 Dangers of Over-Diversifying your Portfolio

    By WiserAdvisor Insights
    July 26, 2019
  • Financial Planning for couple

    The Complete Guide on Financial Planning for Couples

    By WiserAdvisor Insights
    August 1, 2019
  • Roth-IRA

    Can You Open a Roth IRA After You Turn 60?

    By Jonathan Dash
    December 19, 2021

Categories

  • Business Finance (2)
  • Education Planning (29)
  • Estate Planning (20)
  • Financial Advisor (1)
  • Financial Advisor Guide (31)
  • Financial Planning (122)
  • Investment Management (67)
  • Personal Finance (11)
  • Portfolio Management (1)
  • Retirement (18)
  • Retirement Healthcare (1)
  • Retirement Planning (79)
  • Retirement Plans (1)
  • Uncategorized (2)

The blog articles on this website are provided for general educational and informational purposes only, and no content included is intended to be used as financial or legal advice.
A professional financial advisor should be consulted prior to making any investment decisions. Each person's financial situation is unique, and your advisor would be able to provide you with the financial information and advice related to your financial situation.

WiserAdvisor is America’s oldest and largest independent network of screened financial advisors. We make it easy and convenient for consumers to find and connect with advisors in their area. We have successfully helped over 100,000+ individuals find their best financial advisor since 1998 with no match fees, no commitments, no obligation, and complete confidentiality. WiserAdvisor has been featured in The Washington Post, The Washington Journal, ABC, CBS, Yahoo and has been seen in numerous other leading financial news and information websites.

Follow Us

  • Recent

  • Popular

  • What Is Roth 401(k) Match?

    What is Roth 401(k) Matching, And How Does It Work?

    By Jonathan Dash
    March 22, 2023
  • How To Use BrokerCheck To Evaluate A Financial Advisor’s Credentials

    By WiserAdvisor Insights
    March 16, 2023
  • Roth IRA and Traditional IRA

    Things to Consider When Deciding Between A Roth or Traditional Retirement Accounts

    By Jonathan Dash
    March 9, 2023
  • The benefits of working with a financial advisor - WA

    The benefits of working with a Financial Advisor

    By WiserAdvisor Insights
    July 16, 2019
  • Financial-Professional

    How to prepare for a meeting with your Financial Advisor

    By WiserAdvisor Insights
    July 8, 2019
  • retirement-accounts

    Choosing the Best Retirement Accounts

    By WiserAdvisor Insights
    July 8, 2019

Contact Us

Corporate Headquarters

12150 Monument Drive, Suite 700
Fairfax, VA, 22033

Business Hours

8:30 AM – 5:00 PM EST (Monday – Friday)

Email Address

wa.assistance@wiseradvisor.com

Phone Number

(703) 651-2060

Fax Number

(703) 259-4487

  • Privacy Policy
  • Terms & Conditions
© Copyright 2022 WiserAdvisor.com. All Rights Reserved.