How to make the most of your initial free financial advisor consultation

“We call this the ‘access conversation,’” said Frank Legan, a Cleveland adviser. “It’s usually about an hour. “We focus on who you are as a person, not how much you have in your 401(k) or how much you have left on your mortgage.”

Still, some prospects seek actionable advice from Legan. He may respond in general terms without going into specifics. “Sometimes they want answers before we do any financial planning,” he said. “But sometimes we can look at things like long-term care insurance and advise on whether or not to keep it.”

Before the meeting, Legan asks potential clients to fill out a questionnaire along with a personal journal. They disclose how they want to work with their advisor, as well as their goals, priorities, and the most important people in their lives.

“It’s a filter,” he said. “This is a way to pre-qualify people who align with our values. “About 10% of people cancel the first meeting after learning of this preliminary task.”

When she began her career as a financial advisor more than 20 years ago, Legan viewed free advice as a sales opportunity. He spent more time marketing himself than listening and learning from others.

“In the beginning, it was more about our company and our people and how great we were,” he recalled. “Now it’s important to listen. ‘Why did you want to see us?’ And let them talk.”

If you’re wondering how much free advice you can get from your initial consultation, consider the types of questions you want to ask your advisor. If you’re too detailed and have to provide a lot of background data and information to your advisor, you probably won’t get many answers.

“I’ll give you high-level advice, like how important it is to save more money for retirement or pay off your mortgage,” says Connor Spiro, a Boston-based certified financial planner. “We’ll explain the added value we can provide, such as how to save for your child’s education by opening a Roth IRA or (Section) 529 plan.”

However, if Spiro needs to do a lot of fact-finding to resolve a particular question, or if it’s a complex problem that requires rigorous analysis or numerical analysis, you can tell the prospect that the issue is outside the scope of the meeting.

Spiro provides consumers with tips to maximize their free consultation. First of all, “The purpose of my being here is…” Be prepared to complete the sentence:

Prioritize the purpose and reason for your visit. Why do you think you need an advisor? What financial issues are most important to you? How much help do you need with budgeting, investment management, or retirement planning?

It’s a good idea to get a one-page summary of all your financial accounts, insurance policies, and loan statements. This will make it easier for your advisor to address your concerns or provide practical guidance.

“If you want to know if you have enough life insurance, get a life insurance policy,” Spiro said. “If you want to talk about how to save more, bring a breakdown of your monthly spending.”

Advisors often view the initial consultation as an opportunity to see if the prospect will be a good client. They consider intangible factors such as the investor’s financial profile, personality, and expectations.

Some advisors are hesitant to take on new clients who spend time criticizing their previous financial planner during initial meetings, says Zev Fried, a Los Angeles-based advisor. If they continue to criticize past advisors, that could be a red flag.

Like Spiro, Fried recommends preparing for the meeting by knowing what the prospect wants and why they are seeking an advisor. “If their goal is to figure out if they’ll be OK in retirement, they can’t do it in an hour,” Fried said. “You have to go through the (planning) process. It’s okay to ask a one-off question. But they won’t delve into financial planning.”