That is the whole reason for the questions, and it is why so many of them feel personal: health, family relationships, debt, income, spending and plans you have not shared widely.
A recommendation cannot be suitable if it is built on a partial or misleading picture. Cover needs may depend on health and dependants. An investment choice may depend on when you need the money and how much loss you can absorb. Retirement planning needs spending, contribution and benefit information.
That does not mean every question is automatically justified. The advisor should be able to explain why information is needed, how it will be protected and what happens if you prefer not to provide it. You can ask for the request in plain language and correct information that has been recorded inaccurately.
Try this now
Review one fact-find or needs-analysis form. Mark any answer that is out of date, estimated or incomplete. Add the date and the source document that could verify it.
Ask your advisor
- How will this information affect the recommendation?
- Which assumptions will you use where a fact is still unknown?
Honest discovery protects both sides of the conversation. It is not a licence to collect information without a clear purpose.