Ways to Hire the Right Investment Advisor

By Daniella Rand

Are you in the early stages of searching for an investment advisor? Are you not sure where to turn to find someone to entrust your hard-earned money?

Finding the right investment advisor isn’t something to rush. It won’t happen overnight. Nor should it. This is a person who, if things go as you hope, will help your family manage their investments for many years to come.

Making the right choice is absolutely crucial. That’s why it’s so important to understand the proper ways to hire the right investment advisor.

Ready to take control of your family’s future? Follow this step by step guide to choosing and hiring the right investment advisor for your needs.


1. Cast a Wide Net Using Several Different Sources

Don’t limit your quest for financial advice to a single Google search. Use a variety of reputable resources, including professional associations to which seasoned financial advisors should belong, to broaden the list of potential providers.

2. Carefully Review Each Advisor’s Background and Methodology Before Reaching Out

Learn more about each advisor before reaching out to them for an initial consultation. If you determine that their approach is not aligned with yours, there is little point in wasting their time and yours.

3. Have Detailed, Frank Conversations With Advisors Who Seem Aligned With Your Goals

After compiling a list of advisors who do seem to fit your needs and goals, your next step is to pursue frank, detailed conversations about their methodology and your investing objectives. This is your opportunity to drill down on “fit” and decide which advisors you feel most comfortable working with.

4. Ask Probing Questions (And Don’t Shy Away From Conflict)

During these conversations, don’t be shy about asking probing questions, like “how much do you charge” and “are you sworn to act in my financial interests.” The answers to these questions will determine how you proceed.

5. Understand Potential Fees and Expenses

If it’s not yet clear, understanding your exposure to advisory and management fees is very important. Higher fees aren’t always a bad thing; active managers often charge more, delivering better long-term performance in exchange. But you must know what you are getting into.

6. Understand Strategy and Discipline

Take the opportunity to talk through each advisor’s investing strategy. How do they respond to market downturns? What steps do they take to preserve upside while limiting downside? Answer these and other questions before making your choice.

7. Do Your Own Due Diligence

Next, evaluate advisors’ performance through multiple market cycles. Do assets under their management consistently outperform the market? While past performance is not indicative of future results, it’s certainly heartening.

Choose Wisely. Your Finances May Depend on It.

This is no overstatement. Your investment advisor’s decisions and advice have the power to alter the course of your financial future. It’s imperative that you choose one who acts in your best interests and demonstrates a clear record of success. Hopefully, the steps outlined above will illuminate the process and make your choice a bit easier.