Thursday, January 27, 2011
Using Financial Advisors
When I do go to see the professionals, it is to get specific questions answered. If they tell me I need to allocate a percentage of my portfolio to bonds, then I research ways of doing that. I listen to product suggestions, but choose my own. Needless to say, a Financial Advisor, in my case, needs to charge me for a plan, because there won't be any product commissions.
Obviously, I am not the best person to ask about what to look for in an advisor, but I do have two additional tests for my advisor that are not often discussed in the media. For the rest of the questions that must be answered, my suggestion is to google "Questions to ask your financial advisor". I would never consider doing business with someone who cannot address all my questions to my satisfaction. Otherwise, I would just keep looking.
I want my advisor to discuss their sell strategy. Sell strategy?!? Okay, if not a sell strategy, then let's call it an exit strategy. The stock market goes up, down, and sideways. Most people who bought mutual funds ten years ago have very little to show for it. I believe there are good times to buy and times when it is necessary to sell. If my broker doesn't know the difference, then I don't feel they are providing any additional value.