Choosing an Investment Consultant

If you are considering investing in the financial markets, you will probably need an investment consultant to help you create and maintain the best portfolio for your situation. But how do youknow if you are putting your money in the right hands?

To make sure that you get good advice about investments and that your investment consultant has the proper credentials and appropriate experience, get the answers to the following questions.

This questionnaire will help you begin to evaluate prospective consultants and determine which one is right for your needs.

1. Does the investment consultant candidate have securities registrations?
   Yes ___
   No ___
   
   If so, what are they?
   _________________________________________________________
   
   
2. Academic degrees?
   Yes ___
   No ___
   
   If so, what are they?
   _________________________________________________________
   
   
3. Sales Licenses?
   Yes ___
   No ___
   
   If so, what are they?
   _________________________________________________________
   
   
4. Professional designations?
   Yes ___
   No ___
   If so, what are they?
   _________________________________________________________
   
   
5. Does the candidate have experience in managing money for similar clients?
   Yes ___
   No ___
   
   If so, how many years?
   _________________________________________________________
   
   
6. Will the candidate provide references and allow you to question those references about their satisfaction and experiences with the candidate?
   Yes ___
   No ___
   
   
7. Does the candidate charge fees?
   Yes ___
   No ___
   
   
8. Does the candidate earn commissions?
   Yes ___
   No ___
   
   Other?
   _________________________________________________________
   
   
9. Will the candidate charge other fees or expenses, such as loads or liquidation fees?
   Yes ___
   No ___
   
   If so, what are they?
   _________________________________________________________
   
   
10. Does the candidate have any conflicts of interest?
    Yes ___
    No ___
    
    If so, what are they?
    _________________________________________________________
    
    
11. What is the candidate's investment philosophy? How does he or she make investment decisions?
    _________________________________________________________
    
    
12. How will the candidate ensure that your investments are right for you?
    _________________________________________________________
    
    
13. Will the candidate expose you to risk through your investments?
    Yes ___
    No ___
    
    If so, what steps will the candidate take to reduce the risk?
    _________________________________________________________
    
    
14. What historical rate of return has the candidate earned for clients over the past 1,3,5, and 10 years?
    _________________________________________________________
    
    
15. What risk levels were used to achieve those returns?
    _________________________________________________________
    
    
16. Will the candidate's investment reports conform with standards provided by the association of Investment Management Research
    Yes ___
    No ___
    
    
17. Does the candidate have the background and experience to integrate your investment portfolio into your overall investment plan?
    Yes ___
    No ___
    
    
18. Is the candidate committed to an approach that will help you make the appropriate investment decisions to maximize your "after-tax" investment return?
    Yes ___
    No ___