Finding a good Investment Advisor
There are numerous ways to find a reliable independent investment
advisor that can help meet your investment needs.
Since many independent advisors do not advertise, a good place
to start is to ask a trusted professional such as your attorney,
accountant or insurance professional for a recommendation.
Often the expertise of a friend or relative with good judgment
and financial acumen may also be helpful.
In addition, you are invited to contact Trident Wealth Management
without cost or obligation. We are happy to schedule a free
initial consultation in your home or office to discuss your
investment needs and to review your current portfolio.
We will gladly provide answers to these and any other questions
that you may have about investment management services. Our
goal is to help you make an informed decision about selecting
the right investment advisor to meet your needs.
We look forward to meeting with you and helping you develop
an investment plan that truly provides you with "Financial
Peace of Mindsm".
To schedule an Appointment
Please call our office at
(480) 346-1333 or visit our website
13 Questions to ask BEFORE
selecting an Investment Advisor
What are the Advisor's Professional
Ask the advisor about his professional education, experience
and the length of time he has worked in the financial services
There are significant differences between the training, experience
and credentials of stockbrokers, financial planners and registered
investment advisors. Investigate carefully - don't be confused
by the titles "advisors" call themselves these days.
Many stockbrokers prefer to be called Financial Advisors or
Financial Consultants and insurance salespeople often call
themselves Financial Planners.
Is the Advisor's Approach Objective?
Your advisor should avoid all conflicts of interest and
work only in your best interest at all times. Does the advisor
have referral fee arrangements with anyone?
Did the Advisor Ask About Your Investment
Needs, Objectives and Risk Tolerance?
A good advisor will ask you personal questions about your
needs and circumstances. Your answers to these questions will
enable the advisor to design a personal investment plan that
will meet your needs for growth, income as well as conform
to your tolerance for investment risk and investment time
These are some of the Questions
the Advisor Should Ask You
· Can you provide me with a statement showing your
· May I see a copy of your latest income tax return?
· Do you have any extraordinary medical expenses?
· Do you have a capital loss carry forward?
· What is your current income and net worth?
· How much income do you need from your investments?
· What are your investment goals?
· How long do you plan to keep the funds invested?
· Do you have any unusual investment requirements?
· What is the annual rate of return that you expect
from your portfolio?
· How much of a decline in your portfolio can you tolerate
during a 12-month period?
· Are your assets held as separate or community property?
· Do you have an up-to-date estate plan?
· Are your assets held in trust?
· Have you changed title to the name of your trust
for all assets you want administered under the
terms of your trust?
What is the Advisor's Investment Process?
The advisor that you are considering should have a sound,
logical and consistent investment process that he will follow
whether the investment markets go up or down.
Are you in Your Comfort Zone?
How is the "chemistry" between you and the prospective
advisor? Are you comfortable asking questions and are the
answers to your questions clear and understandable?
How Will the Advisor Keep in Touch
Good communication is critical for a successful business
relationship. A good investment advisor will call you no matter
what the market may be doing.
Does the Advisor Prepare a Written
Investment Policy Statement?
Will the advisor work with you to develop a written statement
that outlines your investment objectives? Such an Investment
Policy Statement is the "blueprint" that defines
how the advisor will manage your portfolio.
Is the Advisor's Fee Reasonable?
Your investment advisor should charge only one reasonable
fee. The costs of managing your investments have a large impact
on your investment results. When working with an investment
advisor, your total annual fees should average no more than
1½% per year.
Who Holds My Assets and Will They
Your investment advisor should never take possession of
your funds or securities. Instead, an independent third-party
custodian such as a brokerage firm (either full service or
discount), bank or trust company should be used to hold your
securities. Make certain that your assets always remain titled
in your name at the firm the advisor uses to hold custody
of his client's assets.
What Kind of Reports Do You Provide
and How Frequently?
In addition to the monthly statement sent by the independent
custodian showing recent activity in your account, the investment
advisor should, at a minimum, provide you with a quarterly
summary of your holdings that includes the cost basis of each
Do You Provide a Report Showing the
Investment Performance of My Portfolio?
One of the most important duties an investor should not
overlook is managing the investment manager. Monitoring the
investment performance of the assets in your portfolio is
a critical element of long-term investment success.
What Benchmarks Do You Use for Comparison?
Ask the advisor about the standards he uses to measure the
investment performance of your portfolio. For example, does
he compare your performance against the S&P 500 Index
or the Dow Jones Wilshire 5000; is a Bond index included?
May I have a Copy of Your Disclosure
Brochure for My Review?
Every Registered Investment Advisor (RIA) is required to
provide his clients with a Disclosure Brochure sometimes referred
to as Part II of Form ADV. This document is filed with state
and federal regulatory authorities and contains important
information about the advisor's personnel, business activities,
practices, investment methods and strategies.
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In addition to having a good attorney, accountant and insurance
professional, one of the most important things you can do
to preserve and increase your wealth is to select an independent
investment advisor. Just as your primary care physician manages
your healthcare, your investment advisor can help you make
certain that your investments remain productive and meet your
In the same way that a good doctor builds your confidence
regarding your healthcare, an experienced, professional independent
financial advisor can provide you with "Financial Peace