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Selecting an Advisor


 

The Intelligent Investor
Originally written in 1949 and revised in 1972 by Benjamin Graham, The Intelligent Investor remains one of the most influencial books ever written on the subject of investing. Warren Buffet, widely considered the best investor of the 20th century, was a student and employee of Benjamin Graham and described The Intelligent Investor as "by far the best book about investing ever written." This book has been recently updated by Jason Zweig and has annotated the text with extensive commentaries for each chapter. Of interest to every investor are the questions you should ask you investment advisor and questions a qualified advisor is likely to ask you.

Questions to Ask Your Diversified Investment Advisor

1. Why are you in this business?

2. What is the mission statement of your firm?

3. What is your investing philosophy?

4. Do you use stocks or mutual funds?

5. Do you use technical analysis?

6. Do you use market timing? (A "yes" response to questions 5 or 6 is a "no" signal to you).

7. Do you focus solely on asset management, or do you also advise on taxes, estate and retirement planning, budgeting and debt management, and insurance? How do your education, experience and credentials qualify you to give advice in those areas?

8. How do you choose investments?

9. What investing approach do you believe is most successful? What evidence can you offer that you have achieved success for your clients?

10. What do you do when an investment performs poorly for an entire year? (Any adviser who answers "sell" is not worth hiring).

11. Do you, when recommending investments, accept any compensation from any third party? Why or why not? Under which circumstances?

12. How much do you estimate I would pay for your services the first year? What would make that number go up or down over time? (If fees will consume more than 1% of your assets annually, you should probably shop for another adviser).

13. May I see a sample account statement? (If you don't understand it, ask the adviser to explain it. If you can't understand his explanation, he's not right for you).

14. Do you consider yourself financially successful? Why? How do you define financial success? How high an average annual return do you think is feasible on my investments? (Anything more than 8% to 10% is unrealistic).

15. Will you provide me with your resume, your Form ADV and at least three references? (If the adviser or his firm is required by the Securities and Exchange Commission (SEC) to file an ADV and he will not provide you with a copy, get up and leave - and keep a hand on your wallet as you go).

16. Have you ever had a formal complaint filed against you? Why did the last client who fired you do so?
Questions Your Diversified Investment Advisor May Ask You

1. Why do you feel you need a financial adviser?

2. What are your long-term goals?

3. What has been your greatest frustration in dealing with other advisers?

4. Do you have a budget?

5. Do you live within your means?

6. What percentage of your income or assets do you spend each year?

7. When we look back a year from now, what will I need to have accomplished in order for you to be happy with your progress?

8. How do you handle conflicts or disagreements?

9. How did you respond emotionally to the 2000-2002 [or 2008-2009] bear market[s]?

10. What are your financial fears? Your financial hopes?

11. What rate of return on your investments do you consider reasonable?

What is important is that you and the advisor select one another and to increase the likelihood of a good fit and met expectations. With over 660,000 registered representatives (stock brokers) and over 800,000 individuals licensed to charge fees for financial advice, the challenge is finding one you can work with and believe will place your financial welfare before their own. The above questions are a good start to discovering who you will feel comfortable working with over the long term.

Shoreline's Competitive Edge
Whatever your need, there are many plans and competitive rates Shoreline Wealth and Investment Management can assist you in obtaining.

For more information:
If you'd like more information about how diversified investment advisors can help you achieve your financial objectives through personalized wealth or retirement and risk management strategies, please contact us. We welcome the opportunity to discuss your unique needs and how we may best meet them.

This page (formatted for versions 4.0 and higher of Netscape or MSIE) is updated regularly so check in from time-to-time to see new articles and updates. You can click on any underlined words on each page to see a specific wealth management topic in the left margin of each page.

For more information:
If you'd like more information about how diversified investment advisors can help you achieve your financial objectives through personalized wealth or retirement and risk management strategies, please contact us. We welcome the opportunity to discuss your unique needs and how we may best meet them.

This page (formatted for versions 10.0 and higher of Internet Explorer) is updated regularly so check in from time-to-time to see new articles and updates. You can click on any underlined words on each page to see a specific wealth management topic in the left margin of each page.

Charles M. Bloom, Registered Principal offers securities and advisory services through Centaurus Financial, Inc. - Member FINRA and SIPC - 775 Avenida Pequena, CA, 93111 (mailing address: 3905 State Street Suite 7173, Santa Barbara, CA, 93105) - CA Life Insurance License No. 0A52786 - Centaurus Financial, Inc. and Shoreline Wealth & Investment Management are not affiliated companies.

The information contained in this web site is neither an offer nor solicitation of any security or service.

 
 

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  Shoreline Wealth and Investment Management Phone: 800.329.4820 - Fax: 805.456.3806 - E-Mail: cbloom@cfiemail.com