Choosing financial advisors who think like Warren Buffet!

by Financial Planning Financial Planners and Planning

If you want to make a lot of money so that you have a lot for your present and enough money for your retirement, do you know which the hardest decision to make is? It’s neither which stock you should be investing in, nor which mutual fund you should be opting for. The hardest decision you have to make if you want to make money is which financial advisor to choose. In simpler words, an advisor can best be described as a fitness expert. He’s the only one who can give the desired shape to your investments.

A financial consultant should tell you much more about investments than just the ‘buy low sell high’ advice. They should inform you about the latest happenings in the field of finance and see that you capitalize on any move that can benefit you financially. But choosing such an investment advisor is what’s difficult. Your prime aim should be to choose financial advisors who think like Warren Buffet. Of course, there’s only one like him, but you need someone who can project an uncanny knack for timing investments and is always looking for ways to earn you profits.

Before taking the final plunge, you should carefully assess all the investment advisors on various fronts. Here’s a small checklist that might help you in selecting the advisor of your choice.

Make sure they are advisors!

There’s a hell lot of difference between a financial investment advisor and a ‘broker’. You might not be able to tell the difference in case you are inexperienced. Typically, a broker is someone who will help you in buying stocks, mutual funds, and bonds but will charge a commission for the same. It would be rather unpleasant to deal with them because they might charge high commission rates and eat up your profits.

Moreover, their standard practice is to make their clients invest just for their commission, without worrying about the future of the stock. Avoid such people, and get a genuine advisor.

Make sure they are qualified!

A genuine advisor will always carry some certifications next to his name. You can simply ask him for his business card and check whether there are any degrees mentioned. B.Com is not good enough, and neither is a BMS, BFA, or BBI! You need someone who has pursued specialized courses such as CFP, CFA, and CLU, CA etc. You can find a list of all genuine qualifications in the field of finance by doing a quick Google search. See if their degree holds any value.

Make sure they are clean!

By clean, we don’t mean personal cleanliness and hygiene! While that’s surely important, an advisor should have a clean track record. You wouldn’t want to hire someone who you later realize has cases of fraud pending against him in the courts! There are various online forums where people file complains. Visit them and type the name of your advisor. A better way to do this is to search the name of your advisor on Google and assess the results that come up!