25/01/2022
SOME QUESTIONS TO ASK WHEN CHOOSING AN INVESTMENT PROFESSIONAL
You can never ask a dumb question about your investments and the people who help you choose them, especially when it comes to how much you will be paying for any investment, both in upfront costs and ongoing management fees.
Here are so questions you should ask when choosing an investment professional or someone else to help you:
1. What training and experience do you have? How long have you been in business?
2. What's your investment philosophy? Do you take a lot of risks or are you more concerned about the safety of my money?
3. Describe your typical client. Can you provide me with references, the names of the people who have invested with you for a long time?
4. How do you get paid? By commission? Based on a percentage of assets you manage? Another method? Do you get paid more for selling your own firm's products? How much will it cost me in total to do business with you?
In additional to what has been mentioned above, your investment professional should understand your investment goals, whether your are saving to buy a home, paying for your children's education, or enjoying a comfortable retirement.
Your investment professional should also understand your tolerance for risk. That's, how much you can afford to lose if the value of one of your investment reduces. And an investment professional has a duty to make sure that he or she only recommends investments that are suitable for you. That is, he or she needs to ensure that the investment makes sense for you based on your other securities holdings, your financial situation, your dreams, and any other information that your investment professional think is important to guide you from making an informed decision.
The best investment professional is one who fully understands your objectives and matches investment recommendations to your goals.