Questions You Might Be Too Embarrassed to Ask Your Financial Advisor (But Definitely Should)

We've been there - sitting across from a financial professional, nodding along as they discuss investment strategies and market trends, while secretly wondering about more basic questions we're too embarrassed to ask. At our firm, we believe there are no "silly" questions when it comes to your financial well-being. Here are some common questions many clients hesitate to bring up, but absolutely should.

"How much money should I actually have saved by now?"

This is perhaps the most common unasked question. The truth is, there's no one-size-fits-all answer. Your savings goals depend on your age, income, lifestyle, and personal objectives. Rather than comparing yourself to arbitrary benchmarks, what matters most is having a personalized plan that accounts for your specific circumstances and goals.

"What exactly is the difference between stocks, bonds, and mutual funds?"

Let's break these down simply:

• Stocks: When you buy a stock, you own a small piece of a company. Your investment grows if the company performs well and its stock price increases.
• Bonds: These are essentially loans you make to a company or government. They pay you interest over time and return your principal at maturity.
• Mutual Funds: These are collections of stocks, bonds, or other investments managed by professionals. They offer instant diversification even with a modest investment.

"How much risk is too much risk?"

Your risk tolerance depends on your timeline, goals, and personal comfort level. Generally, younger investors can take on more risk since they have time to recover from market downturns. As you approach retirement, gradually shifting toward more conservative investments helps protect what you've built. The right mix is one that lets you sleep at night while still working toward your goals.

"What's the difference between a traditional and Roth IRA?"

Both help you save for retirement, but they differ in how they're taxed:

• Traditional IRA: Contributions may be tax-deductible now, but withdrawals in retirement are taxed as income.
• Roth IRA: Contributions are made with after-tax dollars, but qualified withdrawals in retirement are completely tax-free.

"Is it too late to start investing?"

The answer is almost always "no." While starting early provides advantages of compound growth, there are strategies for those beginning later in life. Even modest contributions to retirement accounts, focusing on catch-up provisions (available to those 50+), and adjusting retirement expectations can all help maximize the time you have, regardless of when you start.

If you've been hesitant to ask these or other questions, we encourage you to bring them up during your next meeting. The most successful client-advisor relationships are built on open communication and mutual understanding. Your questions help us serve you better, and we're here to provide guidance on your terms.