4 questions to ask your financial advisor

4 questions to ask your financial advisor

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"You need to compare your portfolio with the stock market and see if you are up or down," Certified Financial Planner John Fawaz said. "You need to compare your portfolio with the stock market and see if you are up or down," Certified Financial Planner John Fawaz said.

KNOXVILLE (WATE) - Whether you are looking for a financial advisor or you have worked with one for several years, there are questions you should ask to make sure you are financially on track.

Certified Financial Planner John Fawaz says one of the key questions to ask is, "How are my investments performing relative to the market?"

"If the market is up 10 percent, a lot of people would be happy with that return, but in reality, if the market did 20 percent then in reality your portfolio had under performed," Fawaz said. "At the same token, if your account is down 10 percent and the market is down 20, that should actually be a positive. So in reality you need to compare your portfolio with the stock market and see if you are up or down."

Fawaz also suggests you ask, "Am I saving enough?" There are a number of assumptions that go into calculating how much you really need to save in order to retire. Even a small error could through your plans off just a bit.

"Is my asset allocation still appropriate?" is another important question to ask. Age, the global economy, risk tolerance, and personal goals are all factors in planning. Therefore, meet with your advisor and rebalance your holdings from time to time.

A fourth question to ask is, "Is the amount of risk I am taking still appropriate?" It's important when to know to be aggressive or conservative with your investments.

If you have a questions for John Fawaz. Good Morning Tennessee will get it answered. Just send it using our contact page

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