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?
Questions Your Diversified Investment Advisor May Ask
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
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
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?
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.
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?
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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