3 key responsibilities
1. Be open and honest with your advisor
To make recommendations that are appropriate for you, your advisor needs to know about your financial situation, knowledge and experience. They also need you to be clear about your objectives and tolerance for risk. Be sure to tell your advisor about any big changes in your life, so they can make any necessary adjustments to your investments or financial plan.
2. Understand what you’re investing in
Read the reports you get from your firm, so you’re aware of what’s happening with your investments. Know how your investment strategy works, and if you have questions, talk to your advisor. Be aware of what’s happening in financial markets, so you can understand how your investments might be affected.
Learn more about investing.
3. Ask questions
If you have questions about your investments or their performance, ask your advisor. A good advisor will want you to be informed and will welcome your input. When your advisor recommends an investment, ask:
- How does this investment work?
- Why should you buy it?
- How will it help your reach your goals?
- What is the level of risk?
- What are the costs to buy, hold and sell the investment?
- When can you sell your investment?
- Will you pay fees or penalties if you need to get your money out sooner?