 |
 |
 |
 |
||
 |
||
Looking For The Qualified Investment Professional
By Tom FinneyRemember Waldo? If not, you should know that he is a tiny cartoon character who always wears eyeglasses, a striped pullover shirt and a stocking cap. Created by English artist Martin Handford, Waldo is the main character in a series of children's books that aren't really meant to be read. Instead, the viewer is asked to find Waldo on each page of the book in scenes that include up to 300 other characters. Finding Waldo is often a difficult, time-consuming task.
Looking for a qualified investment management professional is very similar. There are lots of so called "experts" out there, and it may be difficult to distinguish the qualified professionals from those who merely claim to be qualified. Here are a few things to look for as you begin your search.
Experience. How long has your prospective professional been working in the field? Does his or her experience meet your needs? If, for example, you are primarily interested in stocks and bonds and your candidate specializes in real estate investments or insurance, you probably won't make a very good match.
Credentials. Your investment professional should have the training necessary to meet your investment needs. Ask candidates about the specific training they have had and how it adds to their ability to serve you.
Personal Attention. Some professionals only have one investment product or one investment plan to offer. Obviously, that one product won't be right for all individuals, but they may try to sell it to you anyway. Thus, you should ask your candidate to show you how he or she has handled clients with varying resources, needs and expectations.
Fees. You can't expect professionals to give away their services. They must be compensated in some way. Some charge a fee, some earn commissions on products they sell, and some use a combination of both methods. While one method may or may not be superior to another, it is important for you to know what to expect and how and when you will be charged.
Reviews. Generally, you will need to update your investment plans from time to time. How often will depend on your personal circumstances more than anything else. Ask your professional candidate what he or she provides in terms of updates and how he or she plans to stay in touch with you to monitor your investment needs.
References. If a professional has no references, is unwilling to give you names or appears uncomfortable talking about references, something may be wrong. Be sure at least to ask for references even if you do not verify them.
Tom Finney is senior vice-president and portfolio manager for SunTrust, Maryland. He has been twice chosen by Baltimore Magazine as one of Baltimore's top money managers. He can be reached at 410-986-1558.