Choosing an Investment Advisor (1256)

Before you start to look for an investment advisor, know what your investment goals are. The clearer your goals are to you, the easier you will be able to explain them to someone else.

If you do not have an investment advisor, ask for recommendations from other financial advisors, friends, and relatives. Then schedule an interview with at least three of the professionals recommended to you. This initial interview should ideally be at no cost.

During the interview, explain in general what your investment goals are and your approximate annual income and assets. Then ask what general recommendations that advisor would make for someone in your situation. Ask about her personal philosophy of investing. Remember, you are trying to find an investment advisor whose philosophy matches your own.

Ask for references from past clients and follow up on those names. Ask references the following questions:

- How often are clients contacted?

- How have they handled past mistakes?

- What has their performance record been?

- Do you feel you can ask questions and have confidence in the answers?

- How easy are they to reach?

Don’t expect a investment advisors to be right all of the time. They are human and will make mistakes. What is more important than always being right is that your advisor is honest and straightforward, provides good service, understands your investment goals, and works for - and with - you.

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