How To Find The Right Investment Advisor For You

2 Minutes Posted on:

When searching for an investment advisor, it's important to find someone who'll work well for and with you. There is more to investment advice than telling people what to do with their money. You need to work with somebody who understands how to approach your goals in a fashion that makes sense to you. When you search for advisors, try these four tips to improve your odds of finding the right one.

Outline Your Goals

It is hard to categorically state whether a particular advisor and their approach is right for you unless you know what your goals are. The goals don't need to be unduly specific. Planning for retirement, starting a business, buying a second home, or funding a kid's college education will be fine as goals go.

The important thing is you can state what you want to accomplish by investing. Even if you just want to achieve greater financial stability, an investment advisor can work with that as a goal.

Examine Your Risk Profile

Investing carries risk, and that's a good thing on a long timeline. Ultimately, the premium you gain from taking a risk successfully is what generates profit and fuels the investment process.

However, you need to know what risks are worth taking. If you need a specific amount of money to pay for retirement and are 10 years away from retiring, you don't want to take risks that could put you below your retirement goals.

At the same time, you should examine whether you're taking on enough risk for where you're at in your life. Someone in their 30s, for example, should consider pursuing several higher-risk investment strategies to seek big payoffs. They have time to recoup their losses, and they can compound their returns from successes significantly because they have many years ahead.


Some folks want an investment advisor who is highly involved. Other people will want to have advisors they can bounce ideas off. When you meet an investment advisor, it's a good idea to learn how hands-on they prefer to be. If the advisor has an approach that doesn't work for you, there's nothing wrong with that. Keep looking until you find someone whose approach clicks.

Check References

Investment advisors usually work with a number of clients. As with any professional, they should be able to offer references. Contact their references to get a sense of how the advisor handles goals and risks. Likewise, inquire about involvement levels and customer service so you can get a sense of how the firm interacts with clients.

• Tags: • 424 Words

About Me

Making The Decision To Plan Your Financial Future When it comes to making things right for you and your family, there are only so many times you can struggle with finances. I didn't used to care too terribly much about finances, but after dealing with near bankruptcy more than a few times, I knew I had some big decisions to make. I started working with a financial planner to address various issues that we were facing, and we realized that there were some mistakes we kept making time and time again. After going through and evaluating our spending, we made some big steps towards clearing up our finances. Read more on this website to learn about finances.