Are you unhappy with your current financial advisor, and feel like you’re ready to make a change?
Want to understand more about what a personal investment company should be able to offer you — no matter the size of the investment you’re able to make?
If so, then you’ve come to the right place.
Your financial future is simply too important to leave in the hands of anyone who is less than professional.
In this post, we’ll break down four of the most important things that all of the best investment companies have in common.
From ensuring they’re following industry regulatory standards to evaluating their communication styles, read on to know what to look for.
1. Ensure They’re Properly Registered
The most important first step to take when you’re in the market for a financial advisor or investment company?
Ensure that they are actually legitimate, and registered with the proper authorities.
Both FINRA and the SEC work to regulate the financial industry. This means that they’ll be able to tell you about a broker’s registration, the certifications they’ve earned, and much more.
If you suspect that you’re dealing with someone who is less than a professional? And, if a price you’re getting quoted seems to good to be true?
Walk away immediately.
You should also take the time to conduct a thorough background check on both an individual broker/advisor as well as their firm.
This will help you to find out about any complaints that have been filed against them.
The best investment companies will welcome the idea of a background check. They may even connect you with a few of their current clients so that you can speak to references directly.
2. Consider Their Fees and Commissions
The best investment companies are always upfront about any fees and commissions that they’ll charge you for managing your money.
In some cases, the commission will be built into the price of an investment product. In other cases, it may be a fixed percentage.
When it comes to fees, ensure that you know exactly how much you’re being charged, and how many times a year you’ll be charged it.
This isn’t just about protecting your money and avoiding getting hit with a surprise fee. If a broker has a high commission rate or gets rewarded for selling certain products?
It’s safe to say that you won’t always be getting unbiased advice and offerings that are consistent with your investing goals.
As a side note, if you notice that an investment firm seems to be making lots of meaningless trades in your account? You should consider reporting them, as they could be engaging in what’s called churning.
Every time a broker make a trade, they’ll get a bit of commission.
So, if your broker has been moving stocks out of your portfolio, only to re-buy them again the next day?
It’s a sure sign of churning. It’s also a sign you need to fire this advisor.
3. Ask about Areas of Specialization
Have you always been interested in tax-free municipal bonds? Want to learn more about how to ride the oil wave? Do you consider yourself to be more of an activist investor?
If so, then you need to check with a potential investment company and evaluate their experience and successes within your investment niche.
While of course, past performance isn’t a guarantee of future results, working with someone who is familiar with the patterns of different investment products is essential.
You don’t want your money to be someone’s learning curve.
You also need to be certain that a personal investment company you’re considering working with will actually allow you to make the kinds of investments you like.
For example, are they prohibited from selling certain investment products? Can you only choose from a small variety of specific investment options that they offer?
If you feel like you won’t get the kind of flexibility and choices that you need, then it’s not the best investment company for you.
4. Evaluate Their Communication Style
Finally, remember that the best investment companies are those that can clearly explain a specific investment to you.
They’ll be able to talk to you about the pros and cons, the potential returns, and the “worst case scenarios.” They’ll also demonstrate a knowledge of the history of a particular investment strategy or offering.
They won’t rush you through these explanations, either. Instead, they’ll take the time to explain how their recommendations are consistent with your investing goals and in line with your risk management strategies.
Additionally, ask a potential company how often they plan to call you. Do you want them to be able to make smaller trading decisions for you? Or, would you like to be informed every time there’s even a minor change in your portfolio’s value?
Make sure that a personal investment company’s communication styles are consistent with your own.
Connect with the Best Investment Companies in Your Area
We hope that this post has helped you to learn more about what to look for when you’re on the hunt for the best investment companies.
Remember that the best investment companies have a commitment to providing excellent and honest service, and the industry experience to back it up.
Are you ready to meet with a financial advisor or personal investment company in your area?
If so, then we invite you to use our online business database to connect with a variety of brokers.
You can interview several of these options, and then choose the one that you connect with the most. Also, keep reading our posts to access more financial and investing advice.