10 crucial questions to ask your financial advisor annually

What are some of the most important questions to ask your financial advisor annually?

Some of the most important questions focus on emergency savings, retirement readiness, Social Security timing, tax-efficient withdrawal strategies, insurance coverage, estate planning, charitable giving and major life changes that may affect your financial future.

Key takeaways

• Why an annual review? An annual financial review should focus on more than portfolio performance. It is an opportunity to ensure your financial strategy still aligns with your goals, priorities and changing circumstances.
• Major life changes. Milestone events such as retirement, job changes, divorce, caring for aging parents or the death of a spouse can significantly impact your wealth plan and may require adjustments.
• Age-based milestones. Reaching a certain age may create important planning opportunities, including catch-up retirement contributions, Social Security claiming decisions, Medicare enrollment and Required Minimum Distributions.
• Insurance considerations. Maintaining an adequate emergency fund and appropriate insurance coverage remains foundational to a strong financial plan.
• Charitable giving. Philanthropic planning can help align charitable giving with broader tax, retirement and legacy goals.

Sitting across the table from your wealth advisor, it’s easy to fixate on the bottom line: Did my investments go up or down and by how much? Portfolio performance, however, is just the beginning of the conversation. Annual financial reviews should serve as check-ins on your financial progress, yes, but they are also valuable opportunities to revisit your goals and discuss what matters most to you.

“Your annual financial review is an opportunity to ensure your plan keeps pace with your life. By coming prepared to share updates about your circumstances and goals, you can leave the meeting with a refreshed, actionable financial and investment strategy designed to support what matters most to you going forward,” says Jama DeHeer, Senior Wealth Planner at Regions Private Wealth Management.

Planning is where everything begins. Wealth plans are designed to help support long-term goals and should remain dynamic rather than static as financial goals evolve, DeHeer says. An annual financial review can provide an opportunity to share important life developments and future life expectations. It offers an opportunity to update your wealth plan in real time, allowing you to immediately see the potential financial impact of key decisions and life events that may be out of your control.

For example, a divorce or premature passing of a spouse, a job layoff or unexpected expenses related to an elderly parent can affect your path toward retirement. These events may impact your ability to purchase a vacation home, fund education expenses for children or grandchildren or achieve an early retirement. As circumstances change, your financial priorities, timelines and investment strategy may also need to evolve.

While major life events are often top of mind, there are also age-based milestones that may carry important financial planning implications. “These age-driven changes may create financial opportunities, but they can also result in missed opportunities if not addressed proactively,” says DeHeer.

Your annual financial review is an opportunity to evaluate how your financial plan aligns with your current goals and circumstances. Reviewing the major life events checklist before your annual financial review meeting can aid in preparation for a productive discussion. Additionally, here are 10 important questions to consider bringing to the conversation.

1. Is my emergency fund still adequate?

If the last few years have taught us anything, it’s that we all need to be prepared for the unexpected. Maintaining sufficient cash or liquid assets can help you weather financial challenges. In addition, periods of higher interest rates may present opportunities to earn more on cash reserves.

2. Should I begin catch-up contributions at 50?

As retirement approaches, individuals age 50 and older may be eligible to make additional contributions to qualified retirement accounts, including 401(k), 403(b) and 457(b) plans, as well as certain Individual Retirement Accounts (IRAs). An annual review meeting may help you determine how these additional contributions fit into your retirement strategy.

3. How might the “Rule of 55” impact my wealth plan?

Typically, withdrawals from a 401(k) before age 59½ are subject to a 10% early withdrawal penalty. However, if you leave your employer during or after the year you turn 55, the Rule of 55 may allow penalty-free withdrawals from that employer’s 401(k) plan. Plan provisions may vary, so consult your plan administrator regarding available distribution options. Income taxes still apply. Keep in mind, rolling funds into an IRA may eliminate access to this provision until age 59½.

4. What should I do once my kids are 21 or older?

As children become legal adults, custodial accounts often need to be transferred into the child’s control. Planning ahead for this transition can help ensure assets are managed in a way that aligns with both your intentions and your child’s financial goals.

5. Do I have proper levels of insurance?

Insurance needs often evolve as your life and finances change. Use your annual review to assess whether your current coverage still aligns with your goals, including life insurance, disability income insurance, homeowners’ coverage, liability protection, umbrella policies and long-term care planning. An annual check-in is a great time to evaluate potential risks, identify coverage gaps and review your insurance options so that you can make informed decisions that strengthen your overall financial plan.

6. When should I start taking Social Security benefits?

You can begin claiming Social Security retirement benefits as early as age 62, but delaying benefits can increase your monthly lifetime payment. Waiting until age 70 generally provides the maximum monthly benefit amount. Identifying an optimal claiming strategy may provide increased longevity protection. The review meeting offers an opportunity to determine a claiming strategy that aligns with your broader retirement plan.

7. When do I need to start taking Required Minimum Distributions (RMDs)?

Individuals generally must begin taking required minimum distributions from traditional IRAs and other qualified retirement accounts at age 73. For those born in 1960 or later, the RMD age increases to 75. In some cases, individuals who remain employed may be able to delay distributions from their current employer-sponsored retirement plan until retirement. For more details, visit irs.gov/retirement-plans.

8. When can I enroll in Medicare?

For most people, Medicare eligibility begins at age 65. If you continue working and are covered under a qualified employer-sponsored health insurance plan, you may be able to delay enrollment without penalty. Understanding your options can help you avoid costly enrollment mistakes. For more details, visit medicare.gov.

9. What should my philanthropic plan be?

It is important to consider how philanthropy fits into your overall financial and legacy plan. An intentional giving strategy can help you support the causes and organizations that matter most to you while aligning your charitable goals with your retirement income, tax planning and estate objectives. For example, beginning at age 70½, eligible individuals can make qualified charitable distributions (QCDs) from IRAs, up to annual IRS limits. These distributions can provide tax-efficient ways to support charitable causes while potentially reducing taxable income.

10. Do I need to update my estate plan?

An annual review is an ideal time to revisit beneficiary designations, powers of attorney, health care directives, trusts and other estate planning documents. Changes in your family, finances or personal wishes may warrant updates to ensure your plan remains aligned with your goals.

Discuss what matters most to you

As you prepare for your annual review, take time to reflect on the goals, opportunities and concerns that are most important to you. Whether you're focused on retirement readiness, protecting your family, managing risk, building wealth, supporting charitable causes or creating a meaningful legacy, a thoughtful conversation can help ensure your financial plan remains aligned with your evolving priorities.

Ongoing financial planning is essential to long-term financial success. “Through thoughtful planning and ongoing guidance, an annual review may help clients make informed decisions and stay on track toward achieving their financial goals,” says DeHeer.

Annual financial review checklist

Before meeting with your wealth advisor, gather:

• Recent tax returns
• Retirement account statements
• Insurance policies
• Estate planning documents
• Information about major life changes
• Charitable giving goals
• Retirement income projections
• Questions about upcoming financial decisions

Talk to your regions wealth advisor about:

1. How your money mindset can influence how you approach your wealth plan.
2. How we can better understand your needs and goals.

Interested in talking with an advisor but don’t have one?
Find a contact in your area or get started on your journey via our wealth management guide.