If your money is very valuable to you, then you should spend some of your valuable time to looking or searching for the right investment professional to or can help you to manage your money properly. You should spend time to picking the right professional for the job before you commit your hard-earned money to a financial planner, stockbroker, or investment advisor.
A smart decision that can help to prevent your money being lost to irresponsible professionals or even scam artists. There are several factors that you must consider when you choosing an investment professional :
1) Identify what your financial needs are : you need to spend some time to getting to know your financial goals and the types of investments that will support you in this process. Having a baseline idea of what you want to happen with your money will give you an idea of what kind of professional that will help you to achieve your goals.
2) Collect information about potential good fits : Comparison shopping is just as important in choosing an investment professional as in buying a car. While recommendations from friends and family are a good starting point, you still need to collect more information. You should always check potential investment adviser’s professional history out their credentials, work history, possible disciplinary action or pending complaints against them. You can check this information out for free through the government’s BrokerCheck website. An investment professional should always be registered with at least one governing body. You can contact your state’s securities regulator to find out exactly how they should be registered and if they are registered appropriately.
3) Interview at least Two Professionals: You should meet with at least two potential professionals in order to get an idea of the differences between them. When interviewing, ask the investment professional straight-forward questions that you’ve prepared beforehand. The investment professional should take the time to answer your questions directly and thoroughly. If you get confused, ask them to review what they just said. Be prepared charming investment professionals aren’t always the best fit. In fact, charm can be a way to blindside investors into scams and bad deals. Make sure you like more than just the professional’s personality.
4) Find out how the investment professional is compensated : Professionals in the investment field are paid in a variety of ways. Such as commissions, flat fees, hourly fees, salaries, or interest off of funds they manage. It is important for you to understand or know how your investment professional will be paid from your relationship. A financial planner who works off of a commission for selling stock in certain funds may not end up having your best interest in mind, despite their fiduciary duties.
Finally, Investment professionals are usually competent and have your best interest in mind, but financial fraud continues to occur. Because of this, it is important for you to train yourself to the best of your ability about the types of investments your money will be put in and the people who you entrust to make those decisions for you. Spending the time upfront to choose a suitable stockbroker, financial planner, or investment advisor that can make sure that you do not fall prey to financial fraud in the long run.