Important Things To Know When In Comes To Investment Advisors

Suitability of Investment

Advisor and 4 Important Aspects to Check

investment advisorInvestment advisor plays an important role in helping you invest in appropriate financial products so as to earn desired returns and at the same time protect your investment. Thus, you need to consider many different aspects while selecting any advisor to be sure the person will be able to understand your financial position and guide you in the right direction. Our aim here will be to look into some of the aspects you need to check while taking the decision about which advisor to hire.

4 Important Aspects to Check While Selecting Any Investment Advisor

Experience Matters

Experience is an important consideration you need to look into while selecting any investment advisor. As such you need to ask the advisor how long he has been practicing and the type as well as number of firms he has worked with. In addition to it, inquire how work experience gained so far is helping him in his current work profile. You also need to check whether the advisor has prior experience of working with people who were in similar financial situation as yours. Generally, while looking for an advisor you should try to find someone with at least 3 years of experience working as an Investment advisor.

Services Offered

Services offered by advisors tend to vary and primarily depend upon their qualification, registration, field of expertise and institution for which they work. Some professional provide investment planning advice on different topics but refrain from selling financial products. Similarly, you will find advisors who specialize in certain subjects like taxation or estate planning. Thus, you need to find an advisor who can focus on and meet specific requirements you have. 

Right Approach

Your primary aim should be to look for an investment advisor who can create an investment plan according to financial goals you have. Moreover, the advisor should consider your investment goals even if he focuses on any specific area like insurance, estate planning or taxation. As for instance, the portfolio recommendations provided by the advisor should take into consideration investment objectives you have and your risk tolerance. In addition to it, such recommendations should also consider your tax situation, cash flow needs and estate goals.It will also be important to check whether the advisor primarily works with people meeting particular net worth, have assets of certain value or of specific income level, to be sure you will be able to work with such advisor.

Additionally, check whether Investment advisor will assist in implementation of your investment plans or would refer you to others.

Attention to Details

You are not hiring an advisor just to do calculations and crunch the numbers. Your aim should be to hire someone who can assist you in properly planning your investments as well as your life.

Thus, the goal should be to find a person with similar values as yours and in a life stage similar to one you are in. 

As for example, you need inquire if the advisor has children, since such person will be able to clearly understand your urge to save money for your kids college education and provide suitable investment advice which will help you meet such requirement. It will also be important for you to ask questions to judge how competent the advisor is and whether the person is able to provide appropriate advice. You can ask questions like:

  • How will you reduce investment risks as I get older?
  • What do you think is more important, paying off debts or saving for retirement?
  • Are you in favor of supporting children through college?


Thus, making right investment decisions is quite important and investment advisor who helps you take these decisions should be a person who tries to understand financial priorities you have and provides suggestions accordingly.