Choosing The Right Financial Advisor

We all at some time need to prepare for our financial future. Choosing the right financial advisor can mean the difference in getting right or wrong. Below are a few tips on what to look for when choosing the financial advisor that’s right for you:

1 Only consider financial avisors that are licensed by the National Association of Securities Dealers (NASD). If it’s possible, try to find an advisor who holds a series 7 license, this will help to open up your investment possibilities to almost anything except commodities. If you interest is in mutual funds, unit investment trusts or closed-end funds, then an avisor with a series 6 license would be acceptable.

2 Try to choose an advisor who has been working (and licensed) for at least three years.

3 An advisor who is compensated on a fee only basis is also a wise choice, because an advisor who gets paid a fee instead of commissions only will be more likely to provide objective, unbiased investment advice. Many advisors now operate on both combination fee and commission compensation plans, whilst this is not as attractive for the investor, these advisors typically privide a higher quality of service than those who get paid on a commission only basis.

4 Always ask for references and follow them up. All competent and experienced financial advisors will e able to provide you with a list of satisfied clients. If they can’t do this, then you should consider looking elsewhere for your investment advice.

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