At some point, even people with a modest income and savings will need an investment advisor. Consider what you want and need for a successful financial future and arm yourself with knowledge about how to choose the right investment advisor for you.

First, you should understand the difference between investment advisors and financial planners. While many people use these titles interchangeably, there is often an important difference based on what you need.

Here’s what you should know: Most financial planners are investment advisors, but not all investment advisors are financial planners. Good financial planners consider your entire financial, professional, and personal life. Based on your current and projected future situation, investment advisors will assist you to create a financial and lifestyle strategy to meet your goals and objectives. Some investment advisors use a much more restrictive approach and are sometimes unfamiliar with choices that aren’t pure securities. Once again, it’s up to you to know what you want to achieve before you make your selection.

After you’ve decided what you want, consider the following things about advisor candidates:

• Level of experience, not just with investments, but with clients in your particular situation.
• Investment licenses and who they are registered with. Are the candidates licensed to sell the types of products you believe you want?
• The entire product and service menu. Do the advisors have the investment products you believe you need and will they provide the level of service you want?
• Don’t be shy. Ask all candidates how they earn their income. Are they paid as part of your transactions? By you? What are their fees?
• Ask directly if the candidates have ever been disciplined by a regulator or sued by an unhappy client. Once again, don’t be shy – this is your money and financial future we’re talking about.
• Request a copy of their “Form ADV,” both parts. Investment advisors must complete parts one and two of this form and file it with the SEC or the state agency that regulates security sales. This document displays the candidates’ education and business experience, and will note if they’ve had problems with regulators or clients. It also states the investment advisors’ fee structure and services provided.

If possible, always meet your candidates in person to evaluate the chemistry, good or bad, that appear to exists between you. An experienced, competent investment advisor for one person may be totally wrong for you. Much like interviewing a prospective doctor, an appropriate “bedside manner” can be a strong component to making this relationship work to your benefit.

The most important factors are the decisions you make about your financial goals and objectives in the short- and long term. Spend the time to decide where you want to go, when you want to get there, and how much money you’ll need when you arrive. Make the effort to select an investment advisor that understands your wishes and has a strategy to help you reach your destination.

Let Exchange Place help you find an investment advisor in New York, New Jersey and throughout the metropolitan area.