Working with an Investment Professional
When choosing an investment professional, the value you receive is based on the quality of your relationship and their ability to meet, or even exceed, your expectations. Many people don’t mind paying for investment guidance, nor expect a professional to perform superhuman feats with their portfolios, but they do expect a commitment to service that includes frequent communication, transparency, and personalized guidance. To get the most value from your investment professional, you need to explain your expectations and agree on how you will work together.
While investment professionals will help to manage your investments, very few can help you with retirement and tax planning. Ask if they are qualified to give tax advice (are they a tax CPA or attorney or an EA?) and if they can tell you if Roth conversions are appropriate. Ask them if they can tell you how much you can spend each year in retirement without running out of money.
Ideally, you should be able to book an initial consultation with an investment professional to learn more about their background, experience, and philosophy. Be clear about what you expect, and ask questions. Here are some ideas:
- Ask how they choose their investment strategies, products, and solutions. Some professionals will shop around based on clients’ needs, whereas others have access to a smaller number of proprietary products.
- Ask them what their investment principles are and how they were founded. Do they follow theory and data, or use their own experience?
- When it comes to payment, see if they are fee-only, commission-based, or a hybrid of the two. Depending on your needs and potential assets under management, you may prefer one fee structure over another.
- If you’re looking for an investment professional that puts their client's needs ahead of their own, ask if they follow a fiduciary standard. See if they have their policy in writing.
- Are you looking for someone who’s highly responsive? See what their communication strategy is like. Do they follow up frequently? Are you able to reach them at any time if you have a question? Do they ask that you can commit to a certain number of meetings per year?
- Do you want access to a broad range of expertise and resources? Ask if they have a network of other professionals that they consult with or recommend. Some investment professionals may be able to connect you to tax, insurance, estate, or business professionals if you need them.
- Check their professional credentials. How long have they been in their field, and what’s their professional background? What is their current level of education, and are they continuing their education? Do they have any additional designations?
Some of the investment professionals you meet may not meet your needs, which is why it’s important to have an initial consultation. Setting the tone for a working relationship with an investment professional is a critical first step, so ask as many questions as you can. Give us a call if you’d like to learn more about our process and see if we could be a good fit for you.
This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2023 Advisor Websites.