Five Things to Look out for when Hiring an Investment Advisor

Five Things to Look out for when Hiring an Investment Advisor

Maybe not everyone knows that the relationship between investment advisors and their clients is all based on trust. And trust is something that requires time to be given. 

They say it’s not easy to find a trustworthy investment advisor, and I do agree with that: I am a professional investment advisor and I work hard and harder everyday putting all my commitment to get better and staying up to date with the latest news about financial market, and not only… I train, I study and read a bunch of books to give my clients the right answers to their questions, so that they can take the right decisions to fix their own problems, like, for example, issues related to estate planning and succession.

There’s a bunch of investment advisors out there, I know, but I firmly believe that there is a lack of expertise and skills…

So, if you have decided to hire a pro in order to help you reach out your money blind spots and teach you how you can take control of your finances, here are the five most important things you have to look for to choose the right person.

  1. Look for an investment advisor who is payed by you, not by a bank or a firm. This is the first, and most important, step. And here’s why: imagine to go to a big retail store and to deal with a salesman whose salary is based on sales or commissions. Do you think that he/she will look to pursue your advantage or his/hers? Maybe the first, if he/she has a strong work ethic and solid principles, but… if he/she hasn’t? Who knows… I think that it is more likely that a pro who is paid by you, will pursue your own interest to help you reach your goals, in order to always keep customer satisfaction high, because this is such critical for a pro’s good reputation to meet new customers and maintain current ones.
  2. Another important issue is about questions. Yes, because a skilled investment advisor will ask you tons of questions! Questions about you, your work and your family, and many other topics: the more nosey they will be, the better. Because he/she will be demonstrating to be interested in you (in order to find the best fitting solutions for your personal case), not only in your money to manage it.
  3. He/she has to use a “life-cycle” approach: if he/she starts pushing  the story telling about financial securities illustrating how good they are and nothing more, you have the proof his/her only goal is to close the deal soon and get a huge commission!

An experienced and skilled investment advisor uses a “goals based investing” style.

4. He/she must have strong skills: I mean technical ones and relational and empathic ones as well. You have to verify his/her certifications, if he/she attended training courses, masters, etc.

5. Last but not least: he/she must be able to speak with simplicity. He/she must talk in a so simple way that anyone, and I mean ANYone, can understand him/her. And if he/she does, that will be the proof he/she perfectly manages the topics he/she talks about. Just keep in mind that “…it is easy to complicate, and it is hard to simplify!”

I voluntarily didn’t talk about ethical: and that’s because it’s something you can’t see or touch with your own hands: but if the professional you are dealing with, matches all the five points, well… you’re likely going to strike gold!

Now that you have learned the five points, you have to be aware that you have to do your own work to reach your financial goals. It’s like with the personal trainer: he shows you the way to get fit, and you have to work hard and diet!

Good job

Paolo Rossetto

Photo by Startup Stock Photos from Pexels