Choosing a financial advisor?

vindikation · #1 10-05-2005, 07:52 PM

What criteria should a begining investor use in choosing a financial advisor (say $25,000 to invest)?

Thanks

jdoe · #2 10-05-2005, 08:49 PM

Ask this:

Hi Mr. X! If your such a great financial advisor why you do have to go to work everyday?

jdoe

ctv1116 · #3 10-06-2005, 12:21 AM

Why so cynical? A good financial advisor doesn't just do investing, but also estate, tax, and college planning. That said, having interned for two of them last summer, it;s not worth your money unless you are absolutely clueless about investing and really want to have you hand held.

#4 10-06-2005, 08:23 AM

yeah their called financial PLANNERS, most financial advisors are brokers. A majority of the financial advisors do not have a CFP.

midas · #5 10-06-2005, 09:09 AM

For that level of investment you don't need an FA. Get some books and stick to mutual funds.

buffett · #6 10-06-2005, 09:50 AM

[ QUOTE ]
What criteria should a begining investor use in choosing a financial advisor (say $25,000 to invest)?

[/ QUOTE ]
Fees.

* If you're paying anything more than about 1.5% (in your case, $375) annually--in commissions or wrap fees or whatever--that's too much. And less is better.

* Ask the guy what his five favorite mutual funds are. If at least two of them have loads and/or 12b1 fees, run away screaming.

* Ask the guy if he thinks a variable annuity might be right for you. If he says anything other than, "Heck, no," run away screaming.

-web

FishHooks · #7 10-06-2005, 12:49 PM

[ QUOTE ]
yeah their called financial PLANNERS, most financial advisors are brokers. A majority of the financial advisors do not have a CFP.

[/ QUOTE ]

Not many places will hire you without a CFP, also they are soon going to make it a requirement for you to have a CFP in the next 5 years I believe.

#8 10-06-2005, 01:34 PM

really? I worked at morgan stanley for a little bit and only a handful of the advisors there had CFP designation

Sniper · #9 10-06-2005, 01:46 PM

Vind,

The first two question you should ask yourself are:

1. Why do you need a financial advisor?
2. What do you hope to get out of the relationship?

cdxx · #10 10-06-2005, 04:30 PM

[ QUOTE ]
Vind,

The first two question you should ask yourself are:

1. Why do you need a financial advisor?
2. What do you hope to get out of the relationship?

[/ QUOTE ]

very good questions. here's another one :

3. do you have enough money to profit from a financial advisor? will you be better off choosing just one fund?