What are the advantages of working with an adviser?
- He or she should have a real interest in giving you good, sound advice: In most cases, an adviser does well when you do well. When you make money, so does your adviser. The more you have to invest, the better your adviser does. That gives them a powerful reason for giving you good advice that will help you make money.
- Some advisers may be interested in a long-term relationship: An adviser will likely want to work with you over the years. This steady, ongoing relationship can benefit both of you.
- An adviser offers a personal touch: If you have a good adviser, and a good relationship, it can be more fun to work with a real person than a book or a computer. Advisers can listen to you and answer your questions. They can also give you information and advice based on your goals, time horizon, and comfort with risk.
- He or she should let you know when decisions should be made: An adviser can look out for you, check in with you, and offer suggestions as events occur and things change.
- An advisor should provide support and advice about trading: Many people need professional help to buy and sell certain kinds of investments. There is a lot you can do on your own today, especially with online banking and websites for investors. Not everyone will feel they need an adviser to help them buy and sell. For those who do, advisers offer a broad array of services.
What are the drawbacks to working with an adviser?
- An adviser charges fees: Many print and online sources are free, or involve a one-time cost. Most advisers’ services will cost you a fee.
- He or she may not offer you all the products that you want: Your adviser may be registered to sell only certain kinds of products, or they may only sell products from certain companies.
- An advisor may push you to buy and sell: Advisers often make their money from your investment activity. When you buy and sell investments, a part of the sale goes to them. That makes some advisers push you to buy and sell more than you really need to.