If you have just recently earned a huge amount of money that you would like to put into an investment, you do not simply go to other investors and tell them that you would like to join them and give them your money. Making an investment is a lot more complicated than that. Being a new investor, you would definitely need an effective investment guidance to make sure that you do not eventually just lose your money. You need to have an effective and reliable investment advisor to help you.
In hiring an effective and reliable advisor you do not solely base their credentials on what other people say about them. There are a lot of things that you need to consider and qualify them for.
Because of the growing population of new investors, a lot of investment guidance companies have emerged. Each of them has numerous seemingly credible advisors. With so many of them to choose from, how do you qualify an advisor that could best provide you investment guidance?
In choosing an advisor to hire you must consider that you have to fully trust this person with your wealth. So it is a must that you choose an investment advisor that is trustworthy. Getting recommendations from other investors may be helpful. But if there is no one that you can ask recommendations from, it would be best to choose an advisor that is registered or has a license. Registered or licensed investment advisors definitely do not cheat and run. There is always a way for their clients to chase them.
You can also tell if the investment advisor that you are looking at is effective and reliable if he had been in the business for quite a long time already. His number of years in the business would tell you that he has been successful enough not to even think of quitting the job or being fired from the job.
There are three different types of investment advisors; the tied advisors, multi-tied advisors and the independent advisors. Tied investment advisors are those that represent a bank or an insurance company. Most investors prefer this type of an investment advisor not just because they are recommended by their bank but also because the establishment that they are tied into is also liable for whatever may happen to their investment. Multi-tied investment advisors are those that offer investments prospects from other companies and are paid on a commission basis. Most of the time, this type of investment advisor is commission greedy. They may either end up making your investment grow a lot bigger so that they get a bigger commission or they would just keep extracting commission from you even without doing much for you if you fail to watch them carefully. Independent investment advisors are those that work on their own and may be paid per advice or also by commission.