Questions for your advisor Part 2: Setting your financial goals

writing a list of goals

In this final instalment of a two-part mini-series on working with financial advisors, CBIA/Lawyers Financial VP Dawn Marchand suggests questions to ask your advisor once you've chosen one.

After settling on an advisor they feel they can work with, it’s time for investors to get down to the business of setting financial goals, says Dawn Marchand, vice-president of marketing and direct distribution for CBIA/Lawyers Financial. 

However, she tells AdvocateDaily.com that the task requires a whole new set of questions, which she shares below:

1. What is my current financial situation?

“The first step is to look at your current financial picture, which includes your assets, debts and savings, and your risk tolerance,” Marchand says. “Sometimes it can feel like a scary thing, but it’s not until you have all this information that you can start working to determine where the gaps and opportunities are.

“Having a solid picture of your net worth will help you make informed decisions today about future financial planning,” she adds. 

2. What type of life insurance do I need?

There are two major types of life insurance, explains Marchand. First is term life insurance, which offers protection for a specified length of time.

“If you’re in your 30s with a couple of kids, you might want enough to cover their lifestyle and education should something happen in the next five or 10 years. It’s generally inexpensive, but will only protect you during that term,” she says.

Another form is whole life insurance, which remains in force for as long as the policyholder pays premiums.

“It tends to be more expensive,” Marchand says. “Based on your needs, an advisor can help determine which option offers the best value.”

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