Investing – who do I trust?

Monday, August 18, 2008

Face it, even the most astute among us has problems with the concept of investment. It is a complicated and confusing maze of the financial world that frankly is better left to professionals. Once one has determined that it is not wise to go alone down the path of investing, it becomes patently clear that guidance and direction from one in the field is mandatory.

That is why you need to attach yourself to one who will give you solid advice and look out for your best interests first. One advantage that you have going for you is that there is a wealth of information on the Internet regarding investing. Also, many books will give you the best outlook and strategies for making the most with your investments.

But there is one thing missing – the individual connection that a wise investor needs in order to navigate the uncharted waters of investing. A professional in whom you can and should place your trust will have these qualities.

A conservative outlook. Never place yourself under the tutelage of one who is haphazard with an investors’ money. Or one who demands frequent and costly moves based on sheer “in the moment” hunches. Check the history of professionals who live this way and you will probably not find many.

A proven track record. A successful professional has a long list of satisfied customers on whom he can call at a moment’s notice for a referral. Make sure to ask for a list of references and then follow through by contacting several to get their feelings on this person. Do not be afraid to ask if they have ever lost money. If they say ‘no’, be suspicious. No one is perfect, and mistakes are common in investing.

An open line of communication. Since you are giving unfettered access to your investment portfolio in the handling of YOUR savings, the professional should go out of their way in being available at reasonable times during the business day. If you constantly have to leave messages which never get returned, then a red flag should go up in your mind.

A few bad moves in his/her past. The best professionals have stories of bad moves they have made for their clients. Ask about them. Do not be afraid to confront about these. The bad deals are the ones from which professionals learn. Do not become one who has bad experiences happen to you because of inexperience on the part of a professional. These guidelines will help you chose wisely and avoid making alliances with the wrong professionals.

For further investment advice try thestreet.com.