So, what is an investment adviser? An investment adviser or advisor could be a firm or a person who provides such service/s in exchange for compensation. Such services may include the following: investment advice relating to stocks, bonds, exchange traded funds or ETF, mutual funds, other investment opportunities; and may likewise provide reports on such investments.
The service provided by an investment adviser is typically ongoing. This means that he/she will provide such continuing advice regarding your investments, monitor them, and make sure that their performance are aligned with your goals. Besides these parts of the service, your adviser could also provide consultations on financial planning, asset allocation and market trends.
As to the compensation for the service provided, it is usually based on the overall value of the whole investment the adviser holds for you. Additional expenses may be required as transactions relating to your investments occur.
Next step is how to choose a financial adviser that is right for you. Before doing so, there are some important considerations that you should think and decide first.
Next step is how to choose a financial adviser that is right for you. Before doing so, there are some important considerations that you should think and decide first.
*Consider the products and services you need and if the financial adviser can provide such or are there limitations involved.
*How much would you pay for the service and by what means would you do so.
*Find out if there are conflicts of interest that may be involved with the financial adviser relating to the consultations to be provided.
*Find out if the prospective financial adviser had any history of legal and/or disciplinary actions made against him.
Finally, when looking for a financial adviser, qualifications are likewise important. Usually, financial advisers must be registered with SEC and/or with proper state securities office. There are convenient sites where you can look into your prospective financial adviser’s legal qualifications. They must be duly registered and licensed as required. Also, you can check if there are any complaints made against them whether it’s a firm or not.
The final agreement between you and your adviser regarding services to be provided, fees and other costs to be paid, and other requirements would ultimately depend on all discussed and agreed conditions. Make certain that you read everything and understand the fine print. This would help avoid future problems and misgivings with your chosen financial adviser. Check out Macdonald Ventures for all your investment advisory needs.