Guidelines for working with your investment advisor
Because the world of investing can be a complicated and at times frustrating place, it can be helpful to seek the guidance of an investment advisor. This person can help you gather the information you need and help you to make decisions quickly. However, because of the very nature of the working relationship, many investors are often not happy, with the investment advisor they choose to worth with. Financial experts recommend stepping up guidelines that will help to define your working relationship, with your investment advisor. When you work within these guidelines with your investment advisor, you are far more likely to be successful, with your investing. Here are some guidelines for working with your investment advisor-
- Always be thinking about the end-Even at the beginning of a working relationship, you should not allow yourself to commit to any contract that does not allow, for immediate termination of the working relationship. This type of termination clause should be available, for either party. In addition, other then a small termination fee, (used mostly for administrative reasons), there should never be a charge. If your prospective investment advisor has a substantial termination fee, in his or her contract, this is a red flag, and you should move on to consider working with someone else. The bottom line is that while all work should be paid for, there should be no penalty for getting out the contract. You should also look to see if there is a refund for any prepayment. Ethical investment advisors will offer an automatic refund, for any work that was prepaid for.
- Know who you are working with-Another important premise of the working agreement, with your investment advisor, should that your investment work, should not be moved or assigned to someone else, without your written consent. This is important because if you have gone to all of the effort to choose the right investment advisor, you suddenly don't want to find yourself, working with someone else. If that does happen, you should be able to end your contract, without any penalty. While most investment advisors understand that importance of the client relationship, this can often happen, when he or she is selling their business. You want to make sure that any transfer is totally voluntary.
- Never give anyone legal authority to sign on your behalf-In the world of investing you should sign everything yourself. It is always in your best interest, to see every piece of paperwork that needs a signature, before you sign it. You should make sure that your investment advisor knows this right from the start of your working relationship.
- Read everything-You want to read everything that is put in front of you. If an investment advisor is pressuring you to sign a document, or has not completely filled in a document and wants you to sign it, these are both red flags. Do not fall for promises that your investment advisor will fill out the paperwork later. Any documents that you sign, should be complete and you should read them in their entirety. It is also important to make sure that you ask for copies of all paperwork, right after you have signed them. This way you will have something to reference should a question or problem arise.
- Always expect the highest standards of professional behavior-You should make sure that your investment advisor, provides you with regular statements of all of your investments, You should also insist that your investment advisor is professional, whether are talking with him on the phone or meeting face to face. If you feel that your investment advisor is not professional for any reason, then you should consider terminating the relationship and moving on to work with someone else.