4 Valuable Tips for Newbies Looking for an Investment Adviser

If you are new to the world of investing, your first big decision is who to hire as a financial adviser.  It is important to realize that not all advisers are equal.  Some of them do not have the right credentials or experience to properly advise you.  In fact, if you are not careful, your adviser can do more to postpone your retirement, than to make it a reality.  Here’s a few quick tips to follow when choosing the most capable, experienced adviser available.

Form a Sounder Opinion

You can learn a lot about an adviser from their ADV form.  All financial advisers must file one of these forms by law.  This form lists the most important information you need to make a sound decision.  It lists an adviser’s experience, training and past history including any trouble they’ve had with the Securities and Exchange Commission.  Most importantly, it lists their fees which provides insight into where their interests lie.  You’ll also find helpful information about prior investments and company facts.  For instance, Fisher Investments address, and other vital information is on their ADV form.

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Do a Credential Double Check

There is a big difference between a simple financial adviser and a financial planner.  A financial planner has special training on a range of financial products, and this training is often more in depth than an adviser’s training.  Some advisers don’t have any training at all.  So, ask to see their certificates and check out the programs they completed.  Ask how many hours of training they have under their belt and how many years of experience in the industry they have.  It also helps to have a business background, an MBA or at least a business-related degree from an accredited school.

Questions, Questions, Questions

Ask as many questions about your adviser’s experience, training and background as possible when you interview them.  Never settle for vague answers and always double check their credentials when possible.  Remember, your adviser should be in it for the long haul, and with any luck, they’ll be by your side for a very long time.  So, make sure they are the right person for the job.  Stay away from insurance salesmen and accountants who moonlight as financial advisers.  You need someone who is completely invested in your financial goals.

Follow the Money Trail

Find out how your adviser gets paid and consider how this affects their advice.  If they receive commission on stocks and mutual funds, they may point you into funds and stocks more often.  If this bothers you, consider a fee-based adviser.  They receive a fee for each consultation you receive and therefore might give you more unbiased advice.  Just remember, you’ll have to pay to speak with them.

It’s not easy finding the right adviser, so prepare to put some time in.  If you use these tips, your reward will be a comfortable and lucrative relationship with an adviser who steers you towards a comfortable retirement.