Three Keys to Find and Keep a Good Investment Advisor

Three Keys to Find and Keep a Good Investment Advisor

  1. Avoid obsessing about short-term performance. In fact, most investors should try to avoid watching the ups and downs of financial markets on anything more often than a quarterly basis.
  2. Demand simple and clear answers to your questions. Good advisors want to provide clear answers. Bad advisors use buzzwords and long-winded, rambling explanations as tools to confuse their clients.
  3. Adopt reasonable return expectations. Well diversified portfolios with appropriate levels of risk should never generate exceptionally high returns. Demands for exceptional returns will attract investment advisors who take high risks, over-promise and ultimately under-deliver.

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