Prepare. Interview. Choose.
To choose an advisor you feel comfortable with – both personally and professionally – it’s smart to take your time, talk face to face, and ask the right questions to help you make an informed choice.
How do I choose the right advisor?
What are my goals and preferences?
Consider these factors: risk tolerance, time horizon, income, taxes, and holdings.
If you are an individual investor, your advisor should understand your goals and your particular financial situation and make recommendations that are suitable for you. Some important factors to consider in defining your goals include:
- Investment goals – What are you working toward: A comfortable retirement? Leaving a legacy? Philanthropic goals?
- Risk tolerance – How much fluctuation in value can you tolerate in exchange for the opportunity to earn above-average returns?
- Time horizon – When will you need to withdraw money from your investments?
- Income needs – Do you need current income from your portfolio? How much?
- Tax situation – Does your tax bracket require a tax-sensitive strategy?
- Other holdings – Do you have significant wealth tied up in real estate or other illiquid assets?
- Other needs – Do you have complex planning needs related to wealth transfer, executive compensation, risk management, business succession planning, or philanthropic planning?
As you begin to do your research, you’ll want to evaluate each one. Firstly, start with a list of recommended advisors, then create a set of questions that you can ask each of them to help ensure that you have all the information you need to compare them with. For example: What are your credentials?, Do you offer services that I need?, How are you compensated?, How will we work together?, How do you approach investing for people like myself?, Where will my assets be held?
Being prepared, means peace of mind when it comes to your financial future.
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