Steps for working with your investment advisor

The world of investing can be a complex and overwhelming place. There is lots of new information that must be assimilated quickly and decisions that have to be made. In addition, your relationship with your investment advisor can be complicated. However, savvy investors know that when they set up guidelines within the working relationship that they have with their investment advisor, they are much more likely to be successful, with their investing. These steps can help you have a more productive, ethical and professional relationship with your investment advisor. Here are some steps for working with your investment advisor-

• Even at the beginning, think about the end-You should never allow yourself to commit to any contract that does not allow either party to terminate quickly. In addition, there should never be a charge, other then a small termination fee, for administrative purposes. Ethical investment advisors do not impose any sort of significant termination penalties. While any work that was performed should be paid for at termination, there should be no penalty attached. In addition, if any prepayment were made, for services not yet rendered, then a provision should exist for an automatic refund. Financial experts recommend that any investor should not make any significant prepayment, for services.
• Stay with the person you choose-There should never be any agreement that allows your contract with your investment advisor, to be transferred or assigned to someone else, unless you give your written consent. If you have done all of the needed work, to choose your investment advisor, you don't want to suddenly find yourself with someone else. If this does happen, for any reason, you should be able to terminate your contract immediately, without any penalty. This often happens when an investment advisor is selling his business. If your contract is part of the transaction, then the transfer should be totally voluntary on your part. If you decide that this is all right with you, then your current investment advisor should complete the transfer process, in a way that makes sure that your best interests are being protected. Remember that in part your investment advisor is benefiting, and selling your good relationship with him or her. Because of this your current investment advisor, should make you aware of all aspects of the transfer process.
• Sign everything yourself-You should never give your investment advisor any legal authority to sign paperwork on your behalf. In addition, it is in your best interest to keep some financial relationships separate. While there is always exceptions, it is generally better, to have separate financial advisors, for most parts of your life.
• Read everything-You should never sign any document that is blank or partially completed with the promise from your investment advisor that he or she will fill it out later. You should make sure that documents that you sign are completed. In addition, you should get a copy of all signed documents immediately after signing them. This way if there is ever a problem or question, you have a copy to refer to.
• Expect professional behavior-You should never work with any investment advisor that does not provide regular and timely statements of your accounts. In addition, your investment advisor should behave in a professional manner at all times, whether speaking with you on the phone, or meeting in person.
• Get your own mail-You should never allow the primary mailing address, for any account to be that of your investment advisor. Your permanent address should be the primary address, for all of your accounts. This way you will receive all notifications and account statements. While you can authorize that copies are sent to your investment advisor, he or she should not be allowed to make any changes to your accounts, without your written approval.