Homing in on the right advice for your investments

Selecting a professional to help you manage your money or investment isn’t easy. You need to ensure that this person capable and trustworthy — these are two different factors, but are equally important.

If you are looking to retain the services of a financial adviser, broker or investment consultant, you may find yourself wondering where to start. Personal referrals are always best because you ask many questions about the specifics of the experience with this professional, but they are not sufficient.

Your financial situation and needs could be different from the person who is making the referral. That is why it is important to still do your own research to ensure you’re picking the right professional for you.

There are some ground rules that you must consider before picking a professional to manage your money or provide any financial advice. Think of the following.

Credentials

In most countries, professions that involve financial advice, wealth management of investment management require certification or licensing. Research the requirements in your country and make sure you only work with people who have the appropriate credentials. You may even go as far as checking that those credentials and licenses have not expired or revoked.

In addition, make sure that the credentials are appropriate for the services you are seeking. Don’t let the alphabet soup of certifications confuses you. If you’re unsure, call or email the regulatory authority that controls that profession and get help.

Reviews

Independent online reviews could help you get more insights into experiences with an individual professional as well as the company you’re considering. Sometimes you need to understand the company’s focus and scope of work. It is not necessarily that it is a good or bad company, but it could be a matter of specialisation.

A company that works with billionaires might have little interest in consolidating your debt or getting out of your credit card and personal loan chaos.

The point is: Look for firstperson experiences with companies, including customer service and support as well as the target client base. You want to work with a financial adviser who wants your business and cares about you as a priority and a source of future referrals.

Interviews

Many financial advisers and other financial professionals are likely to meet with you for a free consultation initially. You may even be able to score these meetings through your employer if you have an employee assistance programme.

Regardless, if you can get a few free consultations, you should be able to get your questions discussed and know what solutions different people could offer you.

Make the best out of your 30-minute or one-hour session. Ask as many questions as possible and get as much information as you can about the financial adviser’s offerings, credentials, costs, etc. The more information you collect at this point, the better and more informed you will be at the time when you need to decide.

In addition, get some understanding if help is actually needed or not. Sometimes financial matters are so complex that you feel like you need some help, but in reality — and after you meet with a professional — you might find that you don’t really have to retain professional help.

Again, this is your opportunity to interview as many professionals as possible. Don’t’ let your guard down, though, and remember that anything you do at this phase should not be binding.

Don’t be tempted to agree to long-term commitment right away. Instead collect information and business cards. Take your time to review all the information you have gathered, check reviews and credential and make an informed decision, which you can be happy with in the long run.

■ Rania Oteify, a former Gulf News Business Features Editor, is a Seattle-based editor.