7 Tips On Selecting An Investment Professional

by Neil on December 11, 2008

So you’ve decided to take the plunge and get back into the market. However, you know you don’t have the time or experience to research everything on your own. You know you need to work with an Investment Advisor; you’re just not sure if you can trust them.

You wonder if they’re looking after their best interests before your own. You want to know that they are accessible to you. Most importantly you want to know you can trust them.

If these questions are running through your mind, read further and hopefully your questions will be answered.

When searching for an investment professional to work with you want to keep several key factors in mind.

  1. Sit down with your potential advisor and interview them. Ask them about their experience, how long they’ve been in the business, their investment style. Also, find out about their accessibility, can you call them when required? How often are statements mailed? One key tip to remember is that while you’re interviewing them, they are also interviewing you.
  2. Ask for a reference. Some advisors may ask certain clients if they can be used in that regard. Don’t be surprised if your potential advisor denies this request though, due to privacy legislation they can’t just hand out client information. You might not want them handing out your phone number either.
  3. Come to the meeting prepared. If they ask you to bring certain documents with you, then bring them. Remember, if you sign on with them it’s based on a mutual relationship of trust. Don’t start out on the wrong foot.
  4. Ask how your advisor gets paid. A good advisor will cover this without being asked. If they dodge the question, then you should think twice about investing with them. Many people are against paying investment advisors, just remember the old maxim ‘nothing is free’. A good investment advisor will be worth what you pay.
  5. If the advisor asks you to sign up and transfer your money in on the first meeting you may want to take a few days to think about it. There is no cooling off period in the investment market.
  6. You advisor should be offering to create an investment plan or road map. This should be thoroughly explained to you before you agree to hire out their services.
  7. Find out what other services they offer. Do they provide a thorough financial plan or will they just be investing your money? Can they make insurance recommendations? Do they work with a tax or legal specialist?

Working with an Investment Advisor may not be best for you. If you want to determine if you’re better off alone read the following article.

What are your thoughts on working with an investment advisor? Have you found it to be a rewarding experience?

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