Retirement Portfolio Management: 5 Questions to Ask Your Financial Advisor

A 2025 executive order may make it easier to add alternative investments like private equity to 401(k) accounts. These investments can be more complicated and riskier than the stocks and bonds that retirement accounts typically hold. That means   it’s more important than ever to work with a financial advisor you trust as you prepare for retirement.

The best way to work with a financial advisor is to ask the right questions. Whether you’re looking for a new advisor or you want to make sure your current advisor is right for you, start with these five questions. 

Preparing for retirement isn’t just about your portfolio; you want to make sure you have the right life insurance, withdrawal strategy, health care plan and more. Talk to Farm Bureau for the personalized guidance you need.

Question #1: What Are Your Qualifications?

Don’t just assume that because someone calls themselves a financial planner, financial advisor or wealth manager that they are qualified. Ask them about their qualifications. Some of the top ways professionals are credentialed include certified financial planner (CFP), chartered financial analyst (CFA) and chartered financial consultant (ChFC).

Those who sell stocks, bonds, mutual funds or insurance should have licenses such as Series 6, Series 7 or Series 63.

Some financial advisors, such as those you’d work with at Farm Bureau, are investment advisor representatives. These companies are registered with the Securities and Exchange Commission (SEC) and are subject to regular review. These advisors are required to meet high standards of client care. 

Question #2: What Services Do You Provide?

You want to make sure your financial advisor can provide the services you are looking for. You may have a fairly straightforward need, such as planning for your retirement. Alternately, you may have more specific investing needs or want someone who can help with the transition plan for your small business.

Question #3: How Do You Get Paid?

Financial advisors may charge:

• A percent of the assets they manage for you
• A flat fee
• An hourly rate
• Commissions on the products they invest in on your behalf

Knowing how an advisor is compensated may help you determine whether their recommendations support your goals.

Question #4: Who Do You Typically Work With?

Financial advisors may tend to work more with certain types of clients or people at certain life stages. For example, an advisor might have a lot of clients who are small business owners, while others may focus on younger people just starting to grow their net worth. 

You’ll want to make sure your advisor’s experience aligns with what you want from your retirement portfolio.

Question #5: How Will You and I Work Together?

Talk to your financial advisor about things like how often you’ll be in contact and how you’ll communicate. 

If you still have decades before retirement, you may just want to check in once a year and rebalance your portfolio, as necessary. If you’re close to retirement or facing major life changes, you may want to meet more often.

You may prefer email, phone calls, video calls, in-person meetings or a mix of communication methods. You’ll want an advisor who is willing to use the methods you prefer.

Connect With Farm Bureau

At Farm Bureau, we know how important it is to find an advisor who is the right fit for you. Reach out today to start a conversation with a financial advisor.