How to prepare for your first meeting with a financial planner
Summarize this article with:
FP Answers: Couple in their 30s with a household income of about $130,000 will meet a planner for the first time. What to bring?You can save this article by registering for free here. Or sign-in if you have an account.Reviews and recommendations are unbiased and products are independently selected. Postmedia may earn an affiliate commission from purchases made through links on this page.Q. My wife Melody just got a new job and her employer provides free meetings with financial planners. We’re both 31 years old and have never gone to a planner. We have the meeting next month and I was wondering how I should prepare for it. What kinds of questions should I be asking? We now have a household income of about $130,000 gross between the two of us and our main goal is to save a down payment for our first home in two or three years here in Windsor, Ont. What paperwork should I bring with us? Our budget? My wife’s defined benefit pension papers? Anything else? We have an $8,000 car loan. My wife’s knowledge of financial matters is limited. Any tips you can give us to get the most from this meeting would be helpful. —Thanks, RenzoSubscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.FP Answers: This is a helpful, and rare, workplace benefit. Your first meeting with a financial planner is a great move, especially as you plan your first home purchase. The end result is that you will both feel more confident about achieving your financial goals, both short- and long-term.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Bringing key documents and information helps your planner get a clear picture of your financial life. It also helps you because even gathering these increases your awareness of your financial situation. Scan or snap photos of your key documents; many planners now use online portals for secure uploads.Income. Bring recent pay stubs for both of you, the most recent tax returns, and previous returns if available, and any bonus or irregular income details.Budget and expenses. This includes your latest household budget (if you have one) or at least a list of recurring monthly expenses. Credit card and bank statements are also helpful to show “forgotten” or infrequent spending.Assets and savings. This includes statements for all accounts, including chequing, savings, tax-free savings account (TFSA), registered retirement savings plan (RRSP), first home savings account (FHSA), and investment account statements for stocks, mutual fund holdings and guaranteed investment certificates (GICs).Debts. Include all car loan information (current balance, payment schedule, interest rate) and any other debts (credit cards, student loans, lines of credit). Do you have a recent credit report or credit score? If so, bring it along.Work-related benefits and retirement. Bring details of employee benefits for both of you, your wife’s defined benefit pension plan details, any group RRSP, deferred profit sharing plan (DPSP), or other work-sponsored plan information.Insurance. It’s important to have the details of your life, health and disability insurance (if applicable).A good rule of thumb is, “If in doubt, bring it along.”To get the most from your meeting, ask questions that focus on your current goal (home down payment, for instance) but also broader financial “blind spots.” The following are some examples.Your home buying goal. For instance, how much should we target for a down payment considering local prices and our income? How can we maximize savings efficiency using FHSAs, TFSAs, and the RRSP Home Buyers’ Plan? How much should we set aside for home-buying costs which may include legal fees, land transfer tax, closing and moving fees?Your overall plan. Given our spending and current debts, what timeline for buying a home seems realistic? Can you help us create (or improve) a monthly savings plan? Are there tax strategies to optimize our down payment savings, especially as a couple?Risk and protection. Do we have enough emergency savings? Is our insurance coverage appropriate for our stage of life?Their service. How do you get paid? Is this advice truly free or are there commissions for implementing the plan? What happens after this meeting — do we get a written plan or a summary? What skills or resources can you help build for someone who is new to financial planning?I recommend that you confirm you will get an email summary so you have a record of the discussion. This will also give you time to reflect on the information at your own pace.Set clear goals together. What is your timeline? What kind of home do you want? What is your maximum comfort price, and why. Planners work best when clients are specific, even if their knowledge is limited. Start wide and then narrow it down.Don’t be afraid to admit what you don’t know. Financial planners are used to questions from beginners. The more curious you are, the more you’ll learn.Make it a team effort. Since Melody isn’t as comfortable with financial matters, use this as a chance to learn together. Ask the planner to walk her through basic concepts. Consider asking for online financial learning resources.Action items. What are your post-meeting action items? What is the planner committing to do? Take note of your tasks and also set timelines for their completion, such as opening an FHSA, reviewing work benefits or making a follow-up budget.Next steps. Review your planner’s recommendations as a couple. Follow up with additional documents or questions if anything comes up that you forgot to ask. Update your financial picture at least once a year as your goals and income change.I also suggest you set a specific time slot (call it a Money Date) so that you have uninterrupted time to discuss and update your financial plan. An hour every month should be enough. Put this date in your calendars; it’s important not to miss it.Preparation will set you up for a clear, focused meeting and make the process a lot less intimidating, even if you’re just starting your financial journey. Celebrate the milestones along the way and enjoy building your plan as a team.Good luck at your first meeting and congratulations to Melody on the new job.Janet Gray is an advice-only certified financial planner with Money Coaches Canada in Ottawa.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.