The idea of investing money in the stock market or bonds is scary to novice investors, but with a little research, it is possible to find a professional with a reputation for providing reliable fiduciary representation. There is no guarantee that an investment won’t lose value, but finding a professional financial advisor will alleviate fear and worry. Here is a quick overview of the top three qualities to seek when hiring an investment banker.
Education and Experience
The education a person has obtained is as equally important as the experience they have with the stock market. Most seasoned investors recommend finding an advisor that has a college-level education in finance, and a minimum of 5 years actively representing clients. It is also recommended to research a person’s credibility with the Securities Exchange Commission, and ensure they are not currently under investigation or at risk of losing their license.
Individuals who hold the CFP (certified financial planner) designation have gone above and beyond in their educational pursuits, and have passed a grueling examination and worked in the industry for a minimum of 3 years. In addition to being an indicator of experience, those holding this certification are held to stringent ethical standards. The certification also requires 30 hours of continuing education every two years, which ensures an advisor is current on any trends or new regulations.
Another important consideration is the fees that the advisor charges for their services. Most charge customers based on flat fees, a commission rate, or a combination of these two. A majority of investors prefer those who charge on a combination bases, which means the advisor receives money when a sale or trade occurs and a small percentage of any gains a person may receive on their investments.
With a bit of research, it is possible to master the stock market and put a person’s money to work. Kirk Chewning has been a trusted advisor in the St. Croix area for more than 20 years and has helped countless individuals gain financial freedom and build wealth. Contact his office today to learn more and put his experience to work.