My advisor will not share information about what companies to invest in; is this reason to find a new advisor?
I have had a simple IRA account since April 2017. My original financial advisor was not a good fit so I found another one. My current advisor will not provide any information about how to invest in different companies. I'm new to investing and want to learn more about investing in various companies. How do I go about this? Should I find another advisor?
You’re smart enough to fire the first one when realizing it’s the wrong fit, so what stops you the second time for not communicating well? Besides those two reasons, high fees and no follow-up would be two other causes for clients leaving their advisors. So, now you know what kind of advisors you are looking for.
Ideally you want to start with the recommendations from family/friends, and through interviews you select the advisor that you find the most compatible to work with, have the knowledge to help your needs, convey the message with clarity and conciseness, and follow up with great care. In this day and age, with the technology (Facetime, Skype, Google Hangout, etc.), distance is no excuse to choose a subpar advisor, only if you don’t care about your money. Go out there, start the interview to find your perfect advisor. Best!
Absolutely. I can't understand why he/she would not help educate you about investments, since it can't help but to improve the "fit" -- that is, your comfort level with that advisor's ability. A good advisor will answer your questions patiently, provide resources for you to use to study the topic of investing, and explain what he/she is doing to invest your money according to your objectives. It sounds as though this one doesn't have the time (or doesn't have the knowledge??) to do a good job for you.
It is very important for any advisor to earn and keep his clients' business. I have found over the years that a client who has been well-educated (by me or by their own efforts) as to what to expect in investing will trust me enough to ride through a rough patch in the markets. Too many clients fire their advisors when the market declines, as though the advisor had done a bad job if their account is down (most likely, they haven't.) Also, too many clients get that feeling of invincibility in good times (like today) and chase after investments that are not good values. We advisors have to steer a sensible course and it is so much easier to do that if the client is knowledgeable. Sit down with this guy (and his/her manager?) and see how you can resolve the problem.
The fact that you are questioning your current advisor is reason enough. Who you choose to manage your money involves your trust and being heard. This does not sound like the case for you with this advisor.
If your current advisor is not willing to take the time to answer your questions and give you some options is a red flag. There are many different types and structures of investments that may be appropriate for you. Even if your advisor thinks his or her idea is the one and only for you at the very least other alternatives should be explained for you to understand.
So yes, I would recommend interviewing different advisors until you find the right fit for you.
The short answer is yes. I'm not saying that your current advisor isn't good at his or her job, but if you want to learn you need to find an advisor that is more willing to teach.
I find that my best clients are those who take an interest in their investments and want to be part of the process. I am not sure why your advisor won't share this information with you. I always explain investment recommendations to my clients so they understand the process better. I don't expect them to gain the knowledge that I have, but the results are better when the client at least has a basic understanding as to why we are doing what we are.