3 Financial Questions to Ask Your Financial Advisor

Are you financially prepared to retire? Every year more and more Filipinos are closer to these golden years, so to make sure we are on our way to reaching our financial goals, here are five essential questions to ask your investment advisor before it’s too late:

1. Is my vision of retirement realistic? Communicate your future lifestyle plans to the advisor. Do you want to travel, open a new business, or work part-time? Defining how you see your future will help you and your financial planner build a better framework.

2. Is my plan working? Ask what the overall performance of your portfolio was last year; do the same for the last three-year period, and for the last five years. Ask how much risk is being taken in order to achieve that level of return. If it’s not a good risk-adjusted return, make adjustments.

3. Am I saving enough? You may find the results unpleasant and surprising, but you need to discuss your spending habits with your advisor and adjust your lifestyle accordingly. It doesn’t matter how much money you have, if you spend more than you make, which a lot of people do, you’re in trouble.

These three may help guide you to settle what you can do on retirement years. Open up and ask these questions to them.

www.newscanada.com

Photo above: While it is good to do things on our own (as that is what Filipinos are used to), it is good to try to be open to having financial advisor to help guide us to that retirement decision. (Image credit: www.cnbc.com)