New income from promotion or new job, inheritance, lottery winning, regardless of where it came from, the question is what to do with it. You want a sound investment and the best return for your future. Many well-meaning people in your life will offer up all kinds of advice, but your best option is to ask an expert. The expert here would be a financial advisor. Here’s a few things you need to ask.
The first thing you want to know is if they are a fiduciary. This means they are a trustee and entrusted with power for the benefit of another. If they are not, find one who is.
You can ask them about their background, their experience and their training. You can also ask about their previous investing wins and losses, ask for references and even ask how they make their income. Ask you see certificates or proof of organizations they belong to.
Ask about their expertise in investing. What services do they provide, how they find out, what methods do they use and why. If they use outside services or advisors themselves, is there an extra cost for this and do they charge that to you or carry it themselves.
Ask for more than one option. Ask them to explain the pros and cons for each and what are the risks, if any. These can be short term or long term and they should clearly explain these.
You want to know how to do follow up and continued service after the investment is made. Have them provide a contact for someone directly involved in the investment, so you can ask about how it it doing and get progress reports. They will tell you how the investment is monitored, what to expect if there are problems that may arise and how the investment is moving.
It’s important to know about the long term goal for you and the investment. If you change your mind will there be a steep penalty, is there a time limit for withdrawal and is there any similar investment that may twin with it as a crossover rather than complete closure.
Find out what happens to a risky investment if you lose the money. Is there any insurance or repercussions for this and are they responsible.
You can ask at your main bank to make an appointment. They charge a small fee, but they are very knowledgeable and do have your best interest in mind. Always ask your friends and family or coworkers for any recommendations
Be vigilant and ask and re-ask until you understand what is being said. There is help online as well, for stocks mutual funds are currently buying for instance, click here for more information Mffais.com