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?
I think it is very important to work with a financial advisor with whom you can connect and communicate effectively. Personal finance is well "personal", I think it's important to think about what you value in a financial advisory relationship. You can also ask friends and family for referrals. Finally, you can visit any of these sites to find a Certified Financial Planner in your community.
These sites will also have questions for you to ask when you hire another financial planner.
Good luck to you.
Advisors only make money because investors pay for their advice. If you’re working with someone who charges you fees and won’t be 100% transparent, it’s time to hit the road.
Of course, there’s more to it than just leaving and going someone else; your personal experience is proof that finding the perfect financial manager isn’t the easiest thing to do. You need an advisor who not only understands the markets, but also knows your goals and how best to help you. It’s always best if you can work with someone you know and trust. If you don’t have a personal connection, talk to friends and family - people in similar situations to your own - and see if they have an advisor they can vouch for.
You don’t NEED a financial advisor. We can be very helpful and provide a valuable service, but money managers and advisors aren’t the only path to financial success. You should only pay for the services of someone who is honest, who explains what they’re doing with your investments and why they’re taking those actions. It’s your money, so you should feel like it’s being cared for properly.
A good advisor should spend time to tell you what she is doing with your money and should also set expectations right. If your advisor is not taking the time to communicate with you and to answer your questions, then I think it is not a good fit.
However, it may also be possible that your advisor does not want to tell you which company to invest in, because she does not pick individual stocks but believes in investing in a diversified portfolio. In this case, she should be able to articulate her reasoning. Personally, I believe that a diversified portfolio is the best option for most clients. However, if you believe otherwise and have a strong opinion then you should look elsewhere.
I am also a bit surprised that you are not able to see what your advisor is doing in your portfolio. Most portfolios run by advisors are completely transparent and clients have access to their accounts and get monthly statements with holdings.
Yes, find a new advisor or adopt an investment approach that doesn't require one.
Does your current advisor simply not have time? Is the account balance too low (and thus the fees too small) to dedicate much time to you? Or do they want to keep you in the dark? I'd hope it's one of the first two, but would be afraid it's the third! I understand that the advisor may be in a time crunch and isn't necessarily a "teacher", but this attitude seems dismissive at best, and even a bit adversarial.
If you're new to the whole investing process, you may want to consider low-cost index funds at Vanguard, Fidelity, Schwab, etc. Costs matter greatly in the long-run and keeping them low will help your long-term returns. You can then take some time to read, research and learn about investing so you can decide later if active or passive investing is best for you. Maybe you'll never go back to an advisor!
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.