How Do I Choose An Investment Advisor?

These are examples of four major designations, but there are other designations or licenses in the industry. Be sure to understand the requirements of a designation prior to engaging any advisors.

There is no substitute for experience. An investment adviser should have experience in managing personal investment portfolios similar to yours. Look for a fee-only investment adviser. Fee-only means that the adviser charges either a flat fee or a fee based on a percentage of assets under management. Commission based compensation encourages an adviser to make trades in order to generate income.

Request a copy of SEC Form ADV Part II or go to www.advisorinfo.sec.gov. This will provide you with information about any disciplinary actions, investment philosophy as well as other information.

Request a Meeting

Request an initial meeting to determine compatibility and availability. This meeting should be free of charge. Make sure you meet with the adviser that will ultimately provide services to you.