What to Expect When Reviewing Financial Planning Services

During financial planning service reviews, expect comprehensive portfolio analysis, goal progress assessment, strategy adjustments, and performance discussions. Your advisor should explain fees, address concerns, and provide clear recommendations for your financial future based on current market conditions and personal circumstances.

What Happens During a Financial Planning Review Meeting?

A comprehensive financial planning review typically spans 60-90 minutes and covers multiple aspects of your financial health. Your advisor will begin by examining your current portfolio performance, comparing actual returns against benchmarks and your original expectations. They'll review any life changes that might affect your financial strategy, such as job transitions, family additions, or health concerns. The meeting includes a thorough analysis of your progress toward stated goals, whether that's retirement planning, college funding, or major purchases. Expect discussions about market conditions, economic outlook, and how current events might impact your investments. Your advisor should also review insurance coverage, estate planning documents, and tax implications of your current strategy. This holistic approach ensures all aspects of your financial life remain aligned with your objectives.

Key Documents Your Advisor Should Review

Professional financial advisors will examine these critical documents during your review:

• Investment account statements and performance reports from the past quarter and year
• Updated net worth statements showing assets, liabilities, and changes since last review
• Tax returns and any recent tax law changes affecting your situation
• Insurance policies including life, disability, and property coverage
• Estate planning documents such as wills, trusts, and beneficiary designations
• Recent pay stubs, bonus statements, or business income documentation
• Major expense receipts or upcoming financial obligations

How Should Your Advisor Explain Performance?

A competent financial advisor will present performance data in clear, understandable terms without overwhelming you with jargon. They should compare your returns to relevant market benchmarks, not just highlight positive numbers. Expect honest discussions about underperforming investments and the reasoning behind keeping or changing them. Your advisor should explain how fees impact your returns and provide net performance figures after all costs. They'll contextualize short-term volatility within your long-term strategy, helping you understand why temporary market downturns shouldn't derail well-planned investment approaches. Risk-adjusted returns should be discussed, showing how your portfolio's performance relates to the level of risk you're taking. Quality advisors will also project future scenarios, showing how current performance trends might affect your ability to reach stated financial goals.

Essential Questions to Ask During Your Review

Come prepared with these important questions to maximize your review meeting:

1. How has my portfolio performed compared to relevant benchmarks and my risk tolerance?
2. What specific changes are you recommending and why are they necessary now?
3. How do current market conditions affect my long-term financial goals?
4. Are my current fees competitive, and what services do they cover?
5. What tax implications should I expect from any recommended changes?
6. How often will we communicate between formal review meetings?

What Red Flags Should You Watch For?

Several warning signs during a financial review indicate it might be time to find a new advisor. Be concerned if your advisor rushes through explanations, uses excessive jargon without clarification, or becomes defensive when you ask questions about performance or fees. Red flags include pushing new products without clear justification, avoiding discussion of underperforming investments, or making dramatic strategy changes without explaining the reasoning. If your advisor can't clearly explain how they're compensated or seems more interested in selling additional services than reviewing your current situation, consider this problematic. Lack of documentation, failure to provide written summaries of recommendations, or pressure to make immediate decisions without time for consideration are also concerning. Trust your instincts—if something feels off or you're not getting straight answers to reasonable questions, it's time to evaluate whether this relationship serves your best interests.

How Often Should Reviews Happen?

The frequency of financial planning reviews depends on your life stage, portfolio complexity, and personal preferences. Most financial advisors recommend formal reviews at least annually, with many clients benefiting from quarterly check-ins. Young professionals with simple portfolios might need less frequent reviews, while pre-retirees or those with complex financial situations often benefit from more regular contact. Market volatility, major life changes, or significant goal modifications might trigger additional review meetings outside the regular schedule. Between formal reviews, quality advisors maintain contact through market updates, relevant news, or brief check-ins about major financial decisions you're considering. The key is establishing a communication rhythm that keeps you informed without overwhelming you with unnecessary meetings. Your comfort level with investing and desire for involvement in day-to-day decisions will help determine the optimal review frequency for your situation.

Pre-Review Preparation Checklist

Prepare for your financial review meeting with these essential steps:

• Gather all account statements and financial documents from the past quarter
• List any major life changes, career developments, or family updates
• Write down specific questions or concerns about your current strategy
• Review your original financial goals and note any changes in priorities
• Collect documentation for any new income sources or major expenses
• Prepare information about employer benefit changes or new investment options
• Note any upcoming major financial decisions or purchases you're considering

Understanding Fee Discussions During Reviews

Fee transparency should be a standard part of every financial planning review. Your advisor should clearly explain all costs associated with your accounts, including management fees, fund expense ratios, transaction costs, and any additional service charges. They should provide a summary showing total fees paid over the review period and explain how these costs compare to industry averages for similar services. Quality advisors will discuss the value proposition—what specific services and expertise you receive for the fees you pay. If fee structures have changed or new costs have been introduced, expect detailed explanations about the reasons and benefits. Don't hesitate to ask for written fee schedules and comparisons with alternative service models. Understanding your total cost of investment is crucial for evaluating whether your advisor relationship remains beneficial and competitive in the current marketplace.

The best financial advisors view reviews as educational opportunities, not sales presentations. They should empower you with knowledge and confidence about your financial future.

Michael Rodriguez, CFP and Financial Consumer Advocate