Daljeet Sidhu offers the following royalty-free article for you to publish online or in print. Feel free to use this article in your newsletter, website, ezine, blog, or forum. ----------- PUBLICATION GUIDELINES - You have permission to publish this article for free providing the "About the Author" box is included in its entirety. - Do not post/reprint this article in any site or publication that contains hate, violence, porn, warez, or supports illegal activity. - Do not use this article in violation of the US CAN-SPAM Act. If sent by email, this article must be delivered to opt-in subscribers only. - If you publish this article in a format that supports linking, please ensure that all URLs and email addresses are active links. - Please send a copy of the publication, or an email indicating the URL to [email protected] - Article Marketer (www.ArticleMarketer.com) has distributed this article on behalf of the author. Article Marketer does not own this article, please respect the author's copyright and publication guidelines. If you do not agree to these terms, please do not use this article. ----------- Article Title: Investment Advice - Are You Risking Your Financial Future With The Wrong Adviser Author: Daljeet Sidhu Category: Investing, Personal Finance, Wealth Building Word Count: 726 Keywords: Investment adviser,Financial adviser,broker,hire investment adviser Author's Email Address: [email protected] Article Source: http://www.articlemarketer.com ------------------ ARTICLE START ------------------
There is a reason most of us depend on our friends or ourselves for making important investment decisions. It's hard to find a dependable professional source of investment advice. There is no dearth of places to turn to for investment advice, but the decision to put a portion of your financial future in someone else's hands should be made very carefully after collecting sufficient information. What are the different types of financial and investment advisers? * Investment Adviser is a professional firm or an individual that advises clients on investment matters. They may manage trust funds, pension funds and personal investments like stocks and mutual funds on their customer's behalf. * Financial planners offer investment advice and help clients with savings, taxes, insurance, estate planning and retirement. * Brokers buy or sell stocks, mutual funds, bonds on their customer's behalf. How do I pick a good investment adviser? Ask your friends and family if they know a good investment adviser. Search the internet, checkout some of the B2B marketplaces or even ask your banker if they can recommend someone. Interview your financial adviser extensively, judging their professionalism and experience. Let him or her learn about your tax situation, fiscal health and long term goals. Consider the following questions to narrow your search for an investment adviser. * What experience do you have? * Where are you registered? * What investment services do you extend? * Do you have all the required licenses? * How much money do you manage for other clients? * How have your investments performed in the past one to ten years? * How will you assist me with my investments? * How are you paid? * Do you require a minimum investment? * How are you different from other investment or financial advisers? Learn how your adviser gains from you. Investment advisers are paid either a percent of the asset value they handle for a customer, a fixed or hourly fee, or a combination of all. They have a fiduciary responsibility to act in your best interest while making investment decisions on your behalf. It is best to at least partially compensate the investment adviser based on his or her performance. In such an arrangement, the investment adviser makes a commission only if he or she meets your investment goals. Be wary of investments that pay a large upfront fee to the investment adviser or lock you into investments that levy a withdrawal penalty. Check credentials and references It is important to check references and credentials. For example in the US ask for 'Form ADV' for the advisers, which provides you with the advisers background, services offered, mode of payment and strategies used. Form is obtainable from the advisers, the SEC, state security regulator or those advisers managing $25 million or more in client assets. Also inquire about the advisers educational and professional background. Know how to evaluate your advisers Once you have hired an investment adviser, remember to evaluate his or her performance at regular interval. It is also important to meet with them regularly to review short and long term goals and to adjust your investment portfolio. Apply the following standards for evaluation. * Review performance: Check regularly how your money is doing in the investments advocated by your adviser. Evaluate portfolio performance with regard to investment goal and risk tolerance for invested assets. Use a proper benchmark or metric matching your investment strategy for various assets. For example if you have invested in stocks, use the market index as the benchmark for comparison. * Cost-benefit ratio: Though your money maybe doing well, it's significant to ascertain the investment return delivered to your adviser. Are you paying more than you thought for the investment return? * Quality of investment recommendations: Evaluate and test your advisers knowledge of the latest investment approaches, preparedness to stay above the rest in the changing market and insights or suggestions on new investment strategies. * Working relationship: Your investment adviser should regularly communicate and update you about your investments. * Personalized service: adviser should regularly review your investment goals and preferences and tailor the investments accordingly. You should be wary of investment advisers who show too much reliance on software programs to create your portfolio. Hiring a good investment adviser is important to secure your financial future. Hire someone you can trust and can easily communicate with. If you adviser does not perform as expected, set up a meeting to rectify the situation else find someone who could be more helpful. Daljeet Sidhu is co-founder at http://www.TradeSeam.com. Visit http://www.tradeseam.com/smallbusiness/small-business-community/index, a B2B marketplace. For Investment Advice quotes visit http://www.tradeseam.com/smallbusiness/business-resources/get-free-quotes/869/Investment+Advice ------------------ ARTICLE END ------------------ [Non-text portions of this message have been removed]
