How to Make the Most of an Investment Consultant

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Investment consultants will help you to understand how to invest your money in the most efficient and effective way possible. If you’re saving for retirement or trying to make your money work for you, working with an investment consultant can maximize the success of your investments!

Here are a few tips to help you make the most of your relationship with that investment consultant:


1. Be Honest

For your investment consultant to be able to help you, he has to know the truth about your financial capabilities. You need to level with him about your:

  • Income
  • Expenses
  • Spending habits
  • Financial goals (both short and long term)

It’s important to be honest with the consultant in order to avoid investing beyond your means. You’ll need to give your consultant all of your relevant financial data so that they know exactly what investments you are capable of.

2. Make it a Partnership

It’s not an employer-employee relationship, it’s more like two partners working together to achieve a common goal. Neither party dictates the terms of the relationship. The financial advisor works to present to you ideas and suggestions, and you need to take their advice without being forced to accept anything. The collaborative approach is most effective when it comes to a financial partnership like this!

3. Communicate

The more you communicate with the investment consultant (and he with you), the better. You should have regular meetings (biweekly or monthly, depending on your investments), as that will give you a chance to touch base and stay abreast of any changes or developments in the market, your industry, or your investment.

4. Learn the Tools of the Trade

If you want to get the most from your investment consultant, you need to understand what he is doing to help you. In order to do that, you need to understand the tools he is using. It’s time to learn a bit more about the programs the consultant uses to research, compile information, and monitor the markets. Two of the best are:

Learn to use these tools, and you’ll have a better understanding of how effective your investment consultant really is.

5. Ask for Help

If you don’t understand something, don’t "fake it until you make it". This is your money you’re talking about, so you need to be certain that you are clear on everything. Ask the consultant to explain anything that you don’t understand.

6. Challenge Them

A challenged investment consultant is highly motivated, and has a much better chance of getting results. Ask the consultant why they chose a specific investment over another, or why they opted for a certain route of investing. It will force them to think about why they are doing things, and it may help them realize that there is a better way. Either that, or they will show you why they’re doing it right.

See Also: 5 Investment Mistakes To Avoid

Follow these tips, and you’ll make the most out of your relationship with your investment consultant!

Got any tips to help new investors out? Leave a comment below and share your wisdom!

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