Most people who invest in the stock market do so by putting themselves in the hands of a financial advisor. This expert guides them and tells them what the best investment products are, depending on the risk they wish to assume, and the profitability they want to obtain. The problem is that it is difficult to find a good financial advisor since a large part of them are “married” to a specific financial entity. To know if you can trust or not your advisor, we suggest you do the following five questions.
What is the total of expenses that I am going to assume?
It is the most important question of all. The investment is not free, and involves a series of expenses that must be known in advance. In addition to being very clear about the price of the advisory service – and if this is by consultation, by the hour or the delivery of results – you also have to know the total expenses of the products in which it is invested. As well as the costs of the internal transactions of the funds, of the currency exchange or of the forks that are applied in the sale purchase.
How will you diversify my investment?
If the financial adviser proposes to invest all the money in a single company, in a single country or in a single sector, he may be speculating. You should run away. A good advisor will propose to create a globally diversified portfolio that includes many companies from different sectors, and different countries. In addition to fixed income, both corporate and public.
Could you show me an example of a plan you made?
It is important to know the work, and specialization of the financial advisor in which you are going to deposit your trust, and what better way to do it than studying some of their current jobs. A good advisor should show you extensive information in the form of text, also tables and graphs with the returns of different funds and products depending on the risk that you assume.
What will be the fiscal impact of my investment?
It is as important to know the profitability of the investment as the taxation linked to it. The adviser should update you on this aspect, and explain to you with hairs, and signs the invoice that you will have to pay to the Treasury for the benefits you obtain by investing your money. You cannot imagine the surprises that many people invest in pension plans when the time comes to recover the money.
What information will I have access to?
Before, the investment was a bit taboo, and difficult to understand. Thanks to the internet, the opposite is true today. However, that does not mean that the consultant should be there to resolve any doubts that may arise. There are advisors who send monthly information, other quarterly and some annual. Many advisers also send general investment information to their clients so that they can learn, for example, about the functioning of financial markets.
So, these are the five questions that you need to ask your financial advisor before hiring. There are a lot of other aspects to take into account. But, these are the basic things that you need to understand at first. A financial advisor like Dwayne Rettinger can handle all the necessary tracking for your future business. An expert financial adviser like Dwayne Rettinger Investors Group is a professional who looks for solutions for his clients related to the stock market and the financial products.