Like most people, you probably are busy with your work and
family. So, you may not have the time to understand the investment
world. That’s why you may want to work a professional investment
representative.
But how do you find the right one? You can start by asking the
right questions.
Like most people, you probably are busy with your work and family. So, you may not have the time to understand the investment world. That’s why you may want to work a professional investment representative.
But how do you find the right one? You can start by asking the right questions.
– Have you worked with people in my situation? As an investor, you have your own special set of characteristics: level of assets, stage of life and long-term goals. Before you sign up to work with a financial advisor, you need to make sure that he or she is comfortable working with someone like you.
– Inquire about a prospective advisor’s qualifications. Make sure anyone you might work with has all the necessary securities licenses.
– What is your investment philosophy? Just like investors, investment professionals have different investment personalities. Some might be naturally more aggressive, while others are conservative. But the ideal advisor is someone who will provide you with guidance that’s based on your risk tolerance and investment preferences.
– How will you communicate with me? You’ll want to make sure that your broker will communicate regularly with you. Find out when you’ll receive statements and how often you’ll meet in person to review your portfolio. Will your advisor call with suggestions and recommendations? Are you free to contact your broker at any time? If the broker is not available, is there someone else that he or she works with who will be familiar with your situation? It’s important to find these things out as soon as possible. Remember, you’re entrusting this person with your financial future – so you have a right to expect open and frequent communications.
– Find out if a prospective investment professional has access to high-quality research and technical expertise in key areas: investments, insurance and estate planning.
In some cases, an advisor may be able to bring in added expertise through a relationship with another professional, such as an attorney or accountant
– How do you get paid? Investment professionals get paid in a variety of ways: fees, commissions, percentage of assets under management, or even a combination of these. You do need to know, right from the start, how your advisor is getting compensated.
– Can you provide me with references? A lot of people are too shy to ask for references. However, a reputable broker will be happy to give you some names of people you can call. Of course, you shouldn’t expect a broker to provide you with the specifics of other clients’ financial transactions. But you should be free to ask about an advisor’s style and responsiveness.
Financial Focus is provided by Mark Vivian, a representative of Edward Jones Financial Services. His office is at 615 San Benito St., Suite 105. Phone 634-0694.
