How to Find a Good Investing Firm

Finding a good investing firm can seem like a shot in the dark sometimes. For many people, the key is to begin one step back, by finding a good investment advisor, financial planner or a good broker, depending on the need. Though your money may end up with an investing firm, in one of their mutual funds, for instance, a good advisor can help you connect with the right one.

Difficulty: Moderate

Instructions

Things You'll Need:

• Computer with a high-speed connection to the Internet
• Time to research investing advisors and firms
• Time to meet with an investment advisor, financial planner or broker

1. Think about what your financial needs are exactly. Do you need advice on specific mutual funds, stocks or bonds? Or do you just need enough information on mutual fund investing firms to knock on the doors of the right one?

2. Decide whether you need real investment advice that keeps your financial goals in mind. If so, you could benefit from an investment advisor. He or she will recommend investment strategies and help you choose the right investment tools. The fee, however, is usually a percentage of your overall invested assets.

3. Choose whether you simply need trades made in your name. A wise broker is one who will give you recommendations on stocks, bond, mutual funds and annuities and then make the investments on your behalf. He or she will often promote those in which he or she has a vested interest. The fee, however, is simply a commission on your trades.

4. Meet with the most likely candidates and ask them the appropriate questions from SEC Roadmap: Picking a Financial Pro, a Web site listed in Resources below.

Tips & Warnings

• Try not to take any preconceived notions of companies or job titles into your search.
• Ask associates, family members and friends for their thoughts on finding not only a good investing firm, but about whether they used an investment advisor, a broker or a financial planner to find it.
• If you're looking to find a good investing firm or investing strategy quickly, you need to re-think it. This is the future of your money and therefore the future of your family. Make sure you can set aside some quality time to make the right decision.
• Every person is different, so even if a good friend in what you perceive to be a similar situation is investing in a certain manner, don't simply leap in yourself. Investigate it fully, and make sure it's right for you.