How to find out what your investment advisor really does

The world of investing can be a complex place. There is lots of terms to learn and information to assimilate. This can also be confusing when it comes to choosing an investment advisor. While you may think that you can simply go to the same investment advisor used by your family or friends, this is not always a good idea. It is important to take the time to make sure that you and your prospective investment advisor are on the same page. There are certain questions that should ask any investment advisor, to help you determine how they will achieve your goals. This way you can be sure that you and your investment advisor will be working in the same direction to achieve your financial goals. Here is what you need to know about how to find out what your investment advisor really does-

• What investment techniques do you use in your work? It is important to take notes on this question. If you are unsure of what the advisor is talking about, you should take the time to look up anything that you are not familiar with. You can also ask the investment advisor, for reading materials that will help outline his investing techniques. This is also a good time to decide if the prospective investment advisor will function more as a consultant or simply do it without even consulting you. Remember that your relationship with your investment advisor should be educational. When you ask this question, it can also be a good time to air your beliefs about investing. You should not hesitate to ask his or her opinion about your investment beliefs. The reason for this is that you should have common ground, if you are going to be able to have a long term working relationship.
• Are there things that you would never do or that you always do? This is a concise question that allows you to see the investment advisors boudaries.
• Have your beliefs relating to investing changed over time? How has this occurred? Investing is a dynamic industry, so if the prospective investment advisor says that his beliefs have not changed, you might want to take this as a red flag.
• What are your investment and other financial methods? What is your method when you work with investors? Would you suggest that an investor be aggressive or a more conservative investor? This question will help you clearly see where the investment advisors, philosophies lie.
• What methods do you use when helping investors, in a volatile market? As the market changes, what (if anything) do you change? This will help you see how on trend the investment advisor really is.
• When you are preparing recommendation for me, where do you find data to use to help you?
• What will I need to be doing? What information will you need from me and in what form? After I receive your recommendation, how will you assist me in implementing your recommendations? What actions will I need to take?
• How often will we be able to meet? This is an important question, because if the advisor claims he is to busy to meet often, or seems desperate to meet with you a lot, this can be a read flag either way. The bottom line is that you want to have a clear understanding of how many investors the advisor works with, so that you might know how much of his personal attention you will receive.
• How often can we talk on the phone? In what timeframe can I expect you to return my calls?