| Do you think you need an Investment Advisor? Hold | | | | How Do You Find The Advisor for You? |
| on before youanswer because this is sort of a trick | | | | Since there are good Investment Advisors and bad |
| question. Also, I amdefinitely biased because I am an | | | | ones, how doyou find the former and avoid the latter? |
| Investment Advisor. | | | | Good question, andthere are some keys. Most large |
| Nonetheless, I think I can assist you in looking at this | | | | brokerage firms list the |
| issuein a way that will serve you. | | | | Investment Advisors they work with and maintain |
| Working with a fair number of investors over the last | | | | informationabout their past performance. This is not a |
| nearly 20years, I have observed that while most are | | | | foolproof resource,though, since they tend to |
| intelligent people,and many are fairly knowledgeable | | | | recommend the Investment Advisors whoinvest in their |
| about the market, they are, asa group, not terribly | | | | products or clear their business with the firm. |
| successful with their investing. | | | | So if you pursue this avenue, you need to watch for |
| Why should they be? More likely than not they have | | | | conflict ofinterest issues. |
| made theirliving doing something other than investing, | | | | You can always subscribe to one of the numerous |
| so why would theythink they can do what a | | | | databaseservices that include information, and |
| professional does better than aprofessional? (After all, | | | | sometimes rankings, on |
| they go to professionals for healthcare or for car | | | | Investment Advisors. These services tend to be fairly |
| repairs when needed!) | | | | pricey,though, so they may not be your best choice. |
| Most investors-even some professionals-tend to be | | | | Another option isto find articles (yes, like this one) or |
| "off" in theirtiming: they buy things when they are hot, | | | | free newsletterswritten by Investment Advisors. If you |
| not when they arecold. But for the greatest benefit, it | | | | find one or several thatmake sense to you, check out |
| should be the opposite. | | | | the IA and see if there's chemistrybetween you. |
| The media doesn't help much when it comes to this | | | | When checking out advisors, here are some things to |
| buyingapproach, and let's face it; greed and fear play a | | | | keep inmind: |
| large part inmost peoples' investment decisions. | | | | 1. Verify their record -- look over their past |
| I truly believe the majority of people would be better of | | | | performance; 2. |
| (thatis, they would end up with more money at the end | | | | Consider their system. Will it work in different |
| of the day) ifthey used professional money managers | | | | marketenvironments?; 3. As best you can, check out |
| to advise them on theirinvesting. Specifically I am | | | | their operationand 4. See if they've had regulatory |
| referring to Registered Investment | | | | problems. 5. Equallyimportant as doing your due |
| Advisors with proven track records of performance in | | | | diligence is making sure there isgood communication |
| investingin stocks, bonds, mutual funds | | | | between you and your advisor and that youtrust this |
| Let me burst one myth right off the bat: You don't | | | | person with your money choices. |
| have to be amillionaire to engage the services of a | | | | Another quick free way to scan through a select |
| topnotch advisor. Somepeople think you need to start | | | | database andfind a wide variety of candidates is with |
| an account with $50,000 or moreto get a really good | | | | . I'm registered there myself as anadvisor and know |
| advisor. Well, you may have more choices ifyou're at | | | | that the company did a background checkregarding |
| that level, however you can find very successful | | | | registrations and regulatory issues. |
| Investment Advisors who will accept opening accounts | | | | An important question to ask is the how the advisor |
| for aslittle as $5000. | | | | getscompensated. You want to stay away from |
| There are literally thousands of Registered Investment | | | | commission junkies orsalesmen disguised as advisors. I |
| Advisorsin the US. Just what do they do-what service | | | | believe that you will get thebest unbiased advice from |
| do they provideyou? They do the legwork; the | | | | someone who is paid a management feebased on the |
| research and analysis. Maybe moreimportantly, they | | | | value of the assets that you entrust them with. |
| keep their primary focus on the markets, | | | | To take it one step further, ask if the advisor invests |
| andspecifically on their specialty area like individual | | | | his ownmoney in the same methodology that he |
| stocks,mutual funds, or bonds. | | | | recommends for hisclients. If he doesn't, ask why. If |
| Because they spend the bulk of their time and | | | | you don't like the answer,close your check book and |
| energyresearching, considering, and analyzing, they | | | | run as fast as you can. |
| naturally have agreater sense of the market and its | | | | Choosing an Investment Advisor can yield long-term |
| movements than those of uswho don't put this kind of | | | | high profitbenefits. I encourage you to consider it if you |
| attention into it. So, with the rightadvisor, you can keep | | | | haven't before. |
| your focus on what you want-like yourbusiness or | | | | However, as with any relationship, make sure there's a |
| your retirement or whatever-and still get theinformation | | | | fitbefore you jump into it. |
| you want and need to invest wisely. | | | | |