last week from my report I covered Mistake #7 - Asset allocation Train Wreck
for 401k plans.
Today I'll cover Mistake #8: Moving your 401k to a salesperson and not a trusted fee-based advisor.
Let's assume you wanted to delegate your portfolio to a trusted financial advisor. What should you look for? Here is a list of 10 things I would consider, based on my years in the industry:
1) Someone who has already been in the industry between 5-10 years and will continue to be in the industry for a while.
2) Someone who has designations after their name. CPA, CFA, CFP
3) Someone who works on a fee-basis rather than as a salesperson (loaded funds, expensive annuities or B shares.)
4) Someone who takes time to review your big picture.
5) Someone you trust.
6) Someone who has an open architecture (no "product lists.") Many banks and insurance firms have small product lists for their advisors to choose from. JUST SAY NO! (Advisors call this their approved list.)
7) Someone who is going to work with you in the future (quarterly, semi-annual, or annual reviews.)
8) Someone with an educational background in business & investing (CPA, finance degree, MBA or both.)
9) Someone who is associated with a boutique/specialty firm (I consider independent advisory firms my stiffest competition.) Happy clients rarely leave them.
10) Someone who takes a planning-based not a product-based approach.
Just remember too that as the market changes, your portfolio grows and time passes, often your investment goals and your tolerance for risk changes. When this happens you need to adjust your asset allocations accordingly.
That is why I offer a FREE Investment Analysis & Portfolio Review. It is a no-obligation assessment of your portfolio to see if you're still invested correctly for your goals, your risk tolerance and your portfolio size.
To get started on your analysis & review either reply to this email or call me here at the office at [aphone].
I hope you are enjoying the report! If you did not get a chance to read it yet here again is the link to download the PDF where you can open it: http://www.worst13mistakes.com/13mistakes-thanks.html
W. Edward Newton Jr., CFP
Newton Financial Network
13850 Ballantyne Corporate Place, Suite 500
Charlotte, NC 28277
Phone: (704) 552-8689