How To Choose A Good Investment Advisor

How to choose an investment advisor you can trust and believe in, along with their experience and background to monitor your investments.

How to Choose an Good Investment Advisor

When you choose an investment advisor that is good for you, one of your main factors in making that decision is someone you can trust. You have to be able to trust the person that will be the driver of your money. This person will be controlling the wheel for all of your investments. This is the person who can make or break you. Your investment advisor will help mold your financial future. This is a person you need to trust.

What does an investment advisor do? They work with you directly to advise and guide you with your investments. You have to be able to trust and believe in this person and also get along with them, since the two of you will be working close together to develop and plan your finance. Once your investment plan has been developed and planned out, your advisor will put it into action and monitor your portfolio. They will make your investment decisions, handle all the daily work pertaining to your investments that need to be done and inform you by meeting with you regular about your investments. This is a person who will be consistent in your life. This person will become a permanent fixture of your life for a period of time.

When choosing an investment advisor know who you are choosing. You want to look at their background and experience. You want to make sure they have the correct background and experience to be your advisor. Some of the things to look for are what type of certification your advisor has. They can be a (CFP) Certified Financial Planner, (CFA) Chartered Financial Analyst, (CPA) Certified Public Accountant or (RIA) Registered Investment Advisor. You want to make sure they have been certified for a least 3yrs and have at least 25 million in assets under his or her management. You also want to know that they have a bachelor's degree from an accredited four-year institution and meet all state and federal registration and licensing requirements. Do an interview with everyone you are considering and don't be afraid to ask for references.



In choosing an investment advisor you need to know how they are going to be compensated for their services. This will also be a guide for the type of service you want from the advisor. There are usually three ways an advisor is compensated: by the hour, by set fee or by commission. By the hour is a short-term basis to help you evaluate your needs. By set fee is a fee-based management for ongoing services. By commission is per transaction. Knowing how your advisor will be compensated will tell you the services you want. Your decision on the type of compensation that will work for you will be base on exactly what you want to do with your money and for how long.

You have a choice when choosing your investment advisor. Make your choice wisely. Don't rush and have a list of questions you want to ask each person you interview before you decide. You have to trust and believe in this person to allow them to handle your investments. This becomes a partnership and like any other partnership, to succeed it has to be base on belief and trust.

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