10 Things to Ask an Investment Advisor Before You Sign Anything With Them

Choosing your investment advisor is just as important as choosing your investments. Chances are, they will be managing a large amount of your money and making decisions regarding what specific investments to put it in. You need to feel comfortable with this person, and be able to contact them without hesitation when you have questions and concerns. Here are some questions to ask your potential investment advisors. Interview at least three and choose the one you are most comfortable with.

How long have you been in the business? Have they just started, or have they been working with investments for 20 years? New doesn't mean bad, as long as they have a mentor that they are working with to help them, and are backed by a great company.
Do you have investments with the company you're recommending? They need to put their money where their mouth is. Do they have the same investments that they are recommending for you? If not, I would seriously reconsider working with them.
Do you monitor my investments daily? Depending on the type of investment, they should be monitoring them on a regular basis, and informing you of potential risks or concerns.
What if you get out of the business or leave the company? What happens if they decide to leave the business, or the company they represent? Can they refer you to someone else, or can you take your investments and put them somewhere else?
Do you have any references? They should be able to provide you with other successful investors who are happy with their service.
How do you get paid? Do they get paid by the company that they work for, or by the investments that they sell? If they get paid via commission, make sure they are pushing a product that they don't truly believe in.
Can you move my money around without my permission? Sometimes, advisors will move money from one fund to another if they don't feel it's working for you. If you trust them enough, then this shouldn't be a problem. They will probably have you sign something up front, giving them permission to do this without having to call you first.
What if I want to take my money out? Is your money easily accessible if you need it for an emergency? Get them to explain the process, and how long it will take to get your money back.
What if I am not satisfied with your service? Can you transfer your funds over to another investment advisor? Remember, it's your money. If you are not satisfied you should be able to move your investments to another advisor without having to jump through hoops.
Can you recommend other products to me as well? Many times, investment advisors can recommend other services and products, like life insurance. This way, you have everything in one place, and one point of contact. They'll be able to tell you what kind of coverage you need, and get a good rate.
As a retired life insurance adjuster for 20 years, I enjoy spending time discussing various insurance issues and ways to improve the experience that people have when shopping for insurance quotes. An essential tip for people is comparison shopping as much as possible.

Twenty years ago in this industry, such a thing would have been very difficult. But nowadays, with the conveniences of the Internet, it's possible to get over 50 insurance quotes in a few minutes. The difference in quotation price can be pretty dramatic, so be sure to comparison shop.