If your investor is worth his salt, he or she should be able to navigate today's choppy financial seas. If you've tossed yours overboard, then it's important to ask these key questions of your new advisor before you hand over any money.
After the global financial crisis hit the stock market, many investors find themselves talking to an investment professional who they hope will be able to help them navigate the choppy financial seas. In that case, according to the Securities and Exchange Commission, it’s important to do research your broker or advisor and to ask some key questions before you hand over any money.
Start by checking the broker’s background, either with the Financial Industry Regulatory Authority or with your state securities regulator. You can get information on your state securities regulator from the North American Association of Securities Regulators.
If you plan to use an investment advisor as opposed to a broker, you can check their background either through your state securities regulator or through the SEC’s Investment Advisor Public Disclosure Web page.
Don’t agree to any investment, advises the SEC, until you know the answers to questions like whether the investment suits your financial goals:
For a more extensive list of questions, visit the SEC Web page.