Are
you the type of person who will read as much as possible
about potential investments and ask questions about them?
If so, maybe you don't need investment advice. But if you're
busy with your job, your children, or other responsibilities,
or feel you don't know enough about investing on your own,
then you may need professional investment advice. Investment professionals offer a variety of services at
a variety of prices. It pays to comparison shop. You can
get investment advice from most financial institutions that
sell investments, including brokerages, banks, mutual funds,
and insurance companies. You can also hire a broker, an investment
adviser, an accountant, a financial planner, or other professional
to help you make investment decisions. Some financial planners and investment advisers offer a
complete financial plan, assessing every aspect of your financial
life and developing a detailed strategy for meeting your
financial goals. They may manage, or receive commissions
from the companies whose products or services you are getting,
how much they will cost, and how your investment professional
gets paid. In contrast to investment advisers, brokers make recommendations
about specific investments like stocks, bonds, or mutual
funds. While taking into account your overall financial goals,
most brokers do not give you a detailed financial plan. Brokers
are generally paid commissions when you buy or sell securities
through them. Brokerages vary widely in the quantity and quality of the
services they provide for customers. Some have large research
staffs. Others specialize in particular types of companies,
for example, companies that are new and have never been in
business before. A discount brokerage charges lower fees and commissions
for its services than what you'd pay at a full-service brokerage.
But generally you have to research and choose investments
by yourself. A full-service brokerage generally costs more, but the higher
fees and commissions pay for a broker's investment advice
based on the firm's research. The best way to choose an investment professional is to
know what type of services you need. Once you know that ask
your friends and colleagues whom they recommend. Try to get
several recommendations, then arrange a face-to-face meeting.
Make sure you get along. Make sure you understand each other.
After all, it's your money. WARNING!! Before You Invest Always Check with the SEC and
Your State Securities Regulator: >Is the investment registered with
securities regulators? >Have investors complained about
the investment in the past? >Have the people who own or manage
the investment been in trouble in the past? >Is the person selling me this
investment licensed in my state? >Has that person been in trouble
in my state, or with other investors in the past?
www.sec.gov
Lois Center-Shabazz is the founder of MsFinancialSavvy.com
and author of the 3-time award-winning personal finance
book, Let's Get Financial Savvy! ISBN #0971979502.
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