The Investment Advisor

In this day and age, anyone with financial assets would agree that having a competent, honest and intelligent financial advisor or investment advisor is absolutely a necessity. Globally, this is a time where the economy is very unstable and uncertain, and it is important that all financial assets be invested and stored wisely so as to be protected from any further potential economic downturn.

However, choosing a financial advisor is not as simple as flipping the phone book or opening a search engine in a browser. Some families are fortunate enough to have been using the same advisor or advisory group for a number of years and feel secure relying on them, but this is not always the case. Advice from friends can only go to a limited extent, and if an individual finds himself in a position where he feels he must use a financial planner or investment advisor, it would be wise to follow certain steps and precautionary measures in order to determine that he is selecting the best person or group for the job.

Do Your Research

Financial advisors are not hard to find. As a matter of fact, they are a dime a dozen, and there is an important reason for that. There are plenty of investment advisors and financial planners who are eager to get their hands on the money of anyone they can, and advise them to make financial decisions which will allow the advisor to make unscrupulous moves with their money behind their back.

Ponzi schemes and false promises are all too common in the world of finance and investment, which is why it is so important to carefully research the background of an advisor before even considering speaking to him. One must look for any trace, no matter how small, unscrupulous behaviour is. If anything is found, that candidate must be disqualified.

Don’t be Afraid to Ask for References

When an advisor who has a solid background in finance and investment and a firmly established practice is located, then it would be prudent to make contact. It is a good idea to ask the financial advisor for his background in his own words, as nothing is more telling than what a businessman will try and sell behind closed doors when compared against cold, hard facts. If it is found that the statements of the advisor line up with his established history, it is best to ask for some references to speak to, such as previous or current clientele.

When contacting the references, one must be sure to ask the tough questions and politely ask them not to sugar-coat their responses. If the inquiry proves satisfactory, then the potential client may move on to discuss factors such as the method by which his potential advisor would be paid as well as the rates and policies of that advisor. It is a wise idea for anyone to have a printed copy of the method of payment, rates and policies of an advisor before signing any contracts.

Choosing the Right Advisor Makes for a Quicker Process

Anyone seeking a good financial advisor or investment planner may want to do this type of research multiple times over until he finds the advisor he feels is the best fit. When he is ready to invest with the firm, he need only schedule a meeting with the advisor and sign all necessary contracts as related to the previously established payment method, rate and policies of the firm. With secured assets, the client can move on with peace of mind.

About the author:

Stacy Hicks is an experienced financial blogger. She writes on investment and inheritance funding.