When the market is going gang busters like the last two years, you would expect solid returns, but look beyond the returns on your investments. Pay attention by asking more questions about their advice and recommendations.1. They may not be the person managing your assets. Find out who is watching the day-to-day investing details. Do not assume your investment adviser is acting alone, most likely they are not.
2. Their recommendations may include other factors. Their compensation may influence their advice, especially when it comes to charitable donations and cash. If your investment professional is earning an annual fee, they have a vested interest in growing your money. Understand where there may be conflicts. For example, if you want to give a large portion of money away to charity, their income will be impacted negatively.
Remember your investment adviser does just that, investments. If it is not their area of concentration, you will be best served by the team approach. 5. Know your adviser’s background. As Consumer Reports tells the rest of the story on products, Financial Industry Regulatory Authority provides background on your financial adviser or potential adviser. This is an independent regulator and you can do your research free at BrokerCheck. At this FINRA site, you can see your broker’s professional history, education and licenses and most important, if they have had any legal challenges against them.