How to Choose an Investment Advisor?

Are you looking to try your hand at investing? It can be a very exciting journey to invest in the stocks of your choice and see if they do well. It is no secret that investors want to invest their money and receive profits. To increase your chances of profits you must make sure that you get help from experts who have the right knowledge and tools to pave the way for your investments.

Not everyone is good with money matters and there is absolutely nothing wrong with taking a little bit of help every now and then. A financial advisor is just the person you are looking for. They can offer the direction you need to make financial decisions that are made with a calculated approach rather than on a whim. To find a financial advisor that is worthy of your time and money, you must look for the following key features:


For people who are not familiar with financial jargon, a fiduciary is legally bound to make sound financial decisions on your behalf. Your fiduciary should play your advocate and help you make the right investment decisions, especially for those in which they are trained. They should be able to prove to you that they have the right education for the investment opportunity you are trying to pursue.

An advisor must first invest in their own education before giving you financial advice. Look for someone who has expertise in the domains you wish to go forward with

Cross Check Credentials

Does your investment advisor have the right credentials? It is very important to question whether the credentials your investment advisor presents are authentic. Cross-check the professional credentials of your investment advisor and see whether they pass standards such as chartered financial analyst and or certified financial planner. Investment advisors with such professional standards qualify to be fiduciaries.

There are websites available where you can verify the credentials of your advisor. This can ensure that your investment advisor is competent enough to help you with your investment opportunities.

Is Your Advisor Really An Advisor?

This may seem like a bizarre question, but sometimes sales persons can indeed present themselves as advisors and give you investment advice. It can be hard to tell whether your financial advisor is actually an advisor. You can’t tell them apart if you meet them face to face.

These pseudo advisors can actually represent a company that comes with the motive to compel you into investing in their products. This is why it is very important to be sure that your investor is actually an investor. You can right away ask your advisor if they double as a salesperson for some company. Cross-checking their credentials can also help you gauge whether they are the real deal.

Clarity Is Must

Your investment advisor needs to be an individual who is well versed and knows the stock market inside out. They should be able to explain everything to you in great detail and answer any questions that you might have. If you think that your investment advisor cannot answer your questions, you will never be able to trust their judgment as you don’t classify them as knowledgeable.

If you have the slightest feeling that your investment advisor may not know what they are talking about, then you need to save yourself the trouble and look for someone who does. Your financial decisions are extremely important to you, and you must not take them lightly. Someone who cannot provide you with clarity might not be the best fit for you.

Mutual Understanding Is Crucial

For every relationship to be successful, you need to have a mutual understanding. You cannot work with someone who does not understand what you want. You need to have a mutual understanding with your investment advisor so you can reach your goals effectively.

It is not only about understanding, but your investment advisor must also be able to communicate effectively and ensure that they empathize with you and are willing to address your feelings. They shouldn’t dictate you into making investment decisions but they must understand why each decision is important. They should also give you the right kind of motivation to work on your investments and ensure that you pull through.

When you do not have any prior experience with investments, you might end up going off the road. You might put all your eggs in one basket, or you might get too disheartened after a loss. Either way, you need to stay on track, and an investment advisor can help you with that. The stock market can be very volatile. One must always work with patience and wait for things and emotions out.

Things to Ask Your Investment Advisor

If you want to establish a good relationship with your investment advisor, here are a couple of questions you should ask them and the reasons why they are important.

  • Do you get incentives?

If your investment advisor is working for incentives, they might not have your best interest at heart. They might be doing everything for their incentives, which can go against you. 

  • Do you plan to act as a fiduciary?

Since a fiduciary has to keep their customer’s needs above their own, you must ask them if they plan to act as one and always keep your needs above theirs.

  • Do you plan to change your company, and if you do, what happens then?

It is not uncommon for investment advisors to change their companies. Before you start taking their services, ask them what happens to you if they plan to switch. 

  • Do you have the right credentials?

This is a very obvious question and possibly the most important one too. Ask the advisor for their credentials to judge whether they are qualified enough to assist you.