An investment advisor is a person you trust to provide you with financial advice, strategies and insurance coverage. Before hiring an advisor to look through your portfolio and give you advice, it is essential to verify that the person you are considering has an impeccable reputation. You need to ensure that your advisor has the knowledge and experience necessary to give you excellent financial advice, so here are three ways to determine if an advisor is reputable.
Read Client Reviews
There are several qualities to look for in a potential investment advisor. Not only do you need to find someone who has a deep, comprehensive understanding of the financial industry, but you also want someone who can easily explain complicated concepts. Reading client reviews will give you a better insight as to how an advisor operates so you can make an informed decision on who to hire.
This practice will also give you insight into an investor’s reputation. You need to know if the advisor offers multiple solutions to clients and how well he or she communicates. Flexible advisors may be more desirable to work with because they provide numerous financial strategies rather than focusing on one concept that may not grow your portfolio. Client reviews are the best way to determine which advisors potentially meet your needs so you can take the next step in verifying credentials.
Conduct an Internet Search
With technology available at your fingertips, it is the best tool to determine if an advisor has a credible reputation. A quick internet search will pull up most of the basic information you need to know about the advisor. This allows you to view educational records, career achievements, and any complaints that have been filed against the advisor. All of this information can help you determine if the advisor you are considering is right for you.
An internet search can also tell you whether the advisor is overseen by the Financial Industry Regulatory Authority or the Securities and Exchange Commission. Both companies have websites that store complaints against investment advisors so you can find them easily. If an investment advisor is not registered with at least one of these entities, he or she is not reputable and should not be trusted with your portfolio. If the advisor you are searching for is registered on one or both of these websites and has no registered complaints, you can be confident that he or she gives good financial advice. You can then move on to the next step in determining if an investor’s reputation is solid.
Verify Credentials and Designations
There are many different credential types that investment advisors may hold. If you are not well-versed in the world of finance, you may not understand what each credential means, and unfortunately, there are dishonest advisors who list designations they do not actually hold. Because of this, it is important to search for your advisor on Investor.gov. This website explains what each credential means and verifies which ones an advisor holds.
Because there are so many credentials available, different ones qualify advisors for various areas of expertise. Verifying that the investor holds the right designations ensures that he or she can accurately represent your financial interests and give you the best advice.
Finding a reputable financial advisor is an extensive process, but the rewards are significant. If you find an advisor that has positive reviews, holds verified credentials and has a solid reputation, you can be confident that he or she is a good hire. Take the time to verify that an advisor has a good reputation before trusting him or her with your portfolio, but once you have determined that the person is reputable, go can trust the advice offered.
