Your life is in a constant state of change. So it’s essential that your investment plan and strategy be up-to-date. When you count on the expertise of an advisor, it’s important to share enough background about your financial and personal life to get the appropriate guidance.

Financial advice can help you develop a customized investment portfolio that aims to build and preserve wealth according to your objectives. But for you to get the most out of your advisor relationship, you’ll need to share some of the details of your financial life.

Your current finances — from your long-range goals to your present obligations — set the foundation for your plan when it comes to building, reviewing, and adjusting your portfolio.

A checklist for your financial picture

Whether you’re reviewing financial information with your banker or it’s time for an annual appointment with a trusted financial professional, these are some of the details that can help give investment and financial professionals the insight they need on your situation.

Your assets and investments. It helps if your advisor has an understanding of all your investments, including your Retirement Savings Plan (RSP), non-registered holdings, real estate, employee stock purchase plans, cash, and other assets (this can include assets across several financial institutions).
Some events might call for a portfolio adjustment. For example, has one individual investment or asset class appreciated to the point where it constitutes an overly large portion of your portfolio? It could be time to rebalance.

Liabilities. Debt plays a big role in an individual’s financial life and ability to save and invest. It can be helpful for your investment advisors to know about your mortgages, loans, credit card debt, and other liabilities. They may be able to present you with solutions you have not thought about.

Income sources. How much money is coming in? This means not only your workplace income, but other sources of current and future cash flow. These include pension plans, life insurance coverage, windfalls such as an inheritance, and workplace deferred profit-sharing plans.

Your partner’s finances. There are other factors that can affect your financial life, ranging from taxation matters to outstanding RSP room resulting from missed contributions in past years.

For example, if you’re married, your partner’s situation can have a big impact. That’s why it’s important to share information about your partner’s finances, including his or her investment portfolio, RSPs, income, and insurance coverage. While you and your partner have joint financial goals, your individual objectives could affect each other’s investment plans.

It’s not just your individual finances and investments that come into play. Significant changes in your life — marriage, divorce, an inheritance, the birth of a child — also have a significant impact on the financial decisions that must be made (see box).  Giving your advisors the full picture of your life helps you get the full service and guidance that you deserve.