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

“We call it ‘the approach talk,’” said Frank Legan, a Cleveland-based adviser. “It’s generally about one hour. We’re focusing on who you are as a human being, not how much you have in your 401(k) or what’s left on your mortgage.”

Nevertheless, some prospects seek actionable advice from Legan. He might reply with general input without getting into specifics. “Sometimes they want the answer before we do a financial plan,” he said. “But sometimes I can help them look at something, like their long-term-care insurance policy, and advise them on whether to keep it or not.”

Before the meeting, Legan asks prospects to complete a questionnaire along with a personal journal. They reveal how they want to work with their adviser — and their goals, priorities and the most important people in their life.

“It’s a filter,” he said. “It’s a way to prequalifying people who are aligned with our values. Some people, about 10%, cancel the initial meeting” after learning of this preliminary assignment.

When he started his career as a financial adviser more than 20 years ago, Legan treated the free consultation as a sales opportunity. He spent more time marketing himself than listening and learning from others.

“In the beginning, it was more about our firm and our people and how great we are,” he recalled. “Now it’s more about listening, about asking, ‘Why did you want to see us?’ and letting them talk.”

If you wonder just how much free advice you can gather from an initial consultation, consider the type of question you’d like to ask the adviser. If it’s too detailed — and requires furnishing the adviser with lots of background data and information — you probably won’t get much of an answer.

“I’ll give high-level advice, like the importance of saving more for retirement or paying off a mortgage,” said Connor Spiro, a Boston-based certified financial planner. “I’ll explain the value-add we could provide, like ways to save for a child’s education by opening a Roth IRA or [Section] 529 plan.”

But if Spiro needs to do lots of fact-finding to address a specific question, or if it’s a complex issue that requires rigorous analysis or number-crunching, he may tell prospects that it falls outside the scope of the meeting.

Spiro offers tips to consumers to maximize the free consultation. For starters, come prepared to complete the sentence, “The purpose of my being here is…”

Prioritize your goals and reasons for the visit. Why do you think you need an adviser? What financial issues matter most to you? To what extent do you need help budgeting, managing your investments or planning for retirement?

You may want to bring a one-page summary of all your financial accounts, insurance policies and loan statements. That makes it easier for the adviser to address your concerns or provide practical guidance.

“If you want to know if you have enough life insurance, bring your life insurance policy,” Spiro said. “If you want to talk about saving more, bring a month-by-month breakdown of your spending.”

Advisers often view the initial consultation as a chance to see if a prospect would make a good client. They consider intangibles such as an investor’s financial profile, personality and expectations.

Some advisers hesitate to accept a new client who spends part of the initial meeting bashing their former financial planner, says Zev Fried, a Los Angeles-based adviser. If they keep blaming a past adviser, that can be a red flag.

Like Spiro, Fried recommends that prospects prepare for the meeting by knowing what they want and why they’re shopping for an adviser. “If their goal is to find out if they’re going to be okay in retirement, I can’t do that in one hour,” Fried said. “We have to go through the [planning] process. It’s fine if they ask a one-off question. But they’re not going to get a deep dive into their financial plan.”