Tips for Finding the Right Investment Advisor Part I

Markets got you down? Now may be a good time to team up with a good investment advisor.

Andrew Horowitz
6-minute read
Episode #79

Part I: Advisor Basics

Some tips on how to find a good investment advisor, ripped right out of Chapter 9 of my book, The Disciplined Investor. This is such and important topic that we have split it up into two episodes.

Part One will cover Advisor basics...what you need to know. And part two will provide tips to finding the best advisor to work with.

Working With an Advisor

Protecting your assets from all the potential pitfalls can be a rather trying matter. For many people, enjoying money is much more rewarding than constantly searching for ways to improve the bottom line. For others, it may make better financial or personal sense to focus daily attention on their career, their family, or retirement, and let a paid professional handle the kind of painstaking research it takes to maintain a profitable portfolio.

Fortunately, for the many people out there who do not like the idea of braving the waters alone, there is an entire fleet of financial professionals willing to help. The degree and quality of that advice varies greatly, and as this book has stressed again and again, it is important to do your homework.

Financial professionals come from many different backgrounds, biases, skill sets, and influences, and have varied levels of experience. Therefore is it imperative to assess the kind of investment strategies you are looking for as well as the kind of person you would like to work with. It is critical that you take the time to size up the benefits and drawbacks of dealing with a particular financial advisor as if you are looking to buy and test-drive a car.

During your evaluation, there are a few easily recognizable key indicators that The Disciplined Investor must pay attention to. The following two segments conveniently lump them into two categories: what to avoid and what to look for.