How to Find the Right Financial Adviser

Saving for college, a new home, or retirement is one of the most important things a person can do to save for the future. Oftentimes we put our finances in the hands of a financial adviser or investment broker without researching who is handling our money. It can be as easy as looking through the Yellow Pages to find someone willing to invest your money for the future, but are they the right person to make your money grow?

One of the best ways to find a good investor is to ask around. Make a list of the names of businesses and financial advisers that you would like to check into. If you know someone who is a great researcher then ask them how they are investing for the future, and ask who is their financial adviser. If someone tells you they are using a friend or a relative then place their name at the bottom of your list. Often times people will invest with people they know without looking at the bottom line.

If you live in a rural area your list may only have two or three names. It may benefit you to look in a larger town or to search the Internet. By using the yellow page feature on the Internet you can locate financial advisers listed by the zip code. You will more than likely find independent advisers and well know companies like Morgan Stanley or Edward Jones.

If you go to work for a large company you may be offered a 401K or a retirement account. Before signing up ask a lot of questions about fees or penalties for withdrawing funds, average percent of return, and any minimum or maximum deposits. Just because an investor tells you that by joining a group fund you are saving or making more money does not make it so. Find out when your company schedules their annual enrollment changes. Find out if your contributions can be payroll deducted. When investments are deducted by payroll it is easier for the consumer to live without those funds. If an investor has to mail in a check to pay for funds they run the risk of not contributing as much as you need to during hard times. Shop around and find out what investor is the best for you.