How to Find an Investment Portfolio Adviser

An investment portfolio adviser is primarily someone who guides you in the management of your assets. Investment portfolio advisers offer advice on stocks, mutual and exchange-traded funds and bonds. Finding an investment portfolio adviser will assist you in making the right and most profitable decisions about your investment portfolio. The process entails searching for an actual adviser, verifying his record and agreeing on compensation terms.

Instructions

1. Utilize reputable online databases to begin your search for an investment portfolio adviser, considering primarily your location and volume of assets. Sites such as RIA Database and Investment Advisor Search are U.S. Security Exchange Commission compliant.

2. Verify the record of the investment adviser you choose by visiting the SEC website (adviserinfo.sec.gov), which allows you to cull background information, such as professional qualifications and experience, conduct, and whether he is registered or licensed to work as an investment adviser.

3. Arrange a face-to-face meeting with your choice to gauge communication and trust levels. Ask questions about employment history, licenses, and federal (SEC or Financial Industry Regulatory Authority) and state registrations. Investment advisers are required to pass a proficiency exam to work in their state. It is not mandatory, though, to possess CFP® or CFA (chartered financial analyst) certification.

4. Inquire about standard compensation in terms of hourly rates, commission and flat fees. Take into consideration that you are more likely to get impartial advice from an adviser paid by his firm; someone who is paid a management fee depending on the value of the assets in your portfolio.

5. Request her to provide you with a copy of her form ADV. Investment advisers use this form during registration with both the SEC and state securities authorities. The form contains the investment adviser's background information and any disciplinary action brought against her by the SEC.

Tips & Warnings

• Be sure to double-check all the information you have about an investment portfolio adviser. Call any professional organization he is affiliated with.

• Do not pay a fee for just meeting up with an adviser to find out more about her services.

References

• U.S. Securities and Exchange Commission: Investment Adviser Public Disclosure
• U.S. Securities and Exchange Commission; Investment Advisers; What You Need to Know Before Choosing One
• Successful Investment; How to Find an Investment Adviser; Ulli G. Niemann
• RIA Database: The Leading Provider of Web-based, Searchable Databases of RIAs, Registered Reps, Broker/Dealers, and Bank/Trust Institutions
• Investment Advisor Search: Registered Investment Advisers Sorted