Finding a trustworthy investment adviser in Phoenix can be challenging with so many options. A good adviser should have proper licensing, fiduciary duty, reasonable fees, and a proven track record. They need to match your risk profile and goals. Look for an adviser with expertise in the areas you need help with – retirement planning, estate planning, taxes, etc. Interview multiple advisers and ask lots of questions before deciding. Check their history and complaints. A great adviser can help you achieve your financial goals through intelligent investing and thoughtful planning over the long-term.
Proper licensing is the foundation of a good Phoenix investment adviser
A legitimate investment adviser will have proper registrations such as being an SEC Registered Investment Adviser (RIA) or a state-registered adviser. This means they are legally allowed to give financial advice and are held to fiduciary standards. Check for any discplinary history on the SEC’s IAPD database or with FINRA for broker-dealers. Proper licensing helps filter out scammers.
Choose an adviser with fiduciary duty to clients
A fiduciary duty legally binds the adviser to act in the best interest of clients. This prevents conflicts of interest and self-dealing. Non-fiduciaries may recommend investments for their own gain over yours. A fee-only adviser who accepts no commissions has a better fiduciary structure. Ask upfront how they are compensated.
Fees should be reasonable for services provided
A Phoenix investment adviser’s fees should be clear and reasonably priced based on the complexity of your situation and services provided. Typically fees range from 0.5% to 2% of assets under management. Brokers charge commissions on trades which incentivizes unnecessary activity. Flat rate advisers charge an hourly rate or fixed price. Get fee estimates in writing first.
Select an adviser with a proven track record of success
The adviser’s past performance and client results are telling. Do client investments routinely beat appropriate benchmarks over 3-5 year periods after fees? Does the adviser have long-tenured clients and AUM growth? Check resources like BrightScope Advisor Pages. Connect with current clients if possible. An adviser can look great on paper but proving real skill takes time.
Make sure your risk profiles align
A good investment adviser will construct a portfolio aligned with your risk tolerance, timeline, and goals. Are you a conservative, moderate or aggressive investor? They should discuss this in depth before making recommendations. If an adviser is too aggressive or conservative for your liking, keep looking for the right fit.
Look for expertise in your specific needs
Find an investment adviser well-versed in areas important to you, whether retirement planning, taxes, estates, college savings, etc. Interview advisers about your priorities. A generalist may not offer the best guidance on topics they don’t specialize in. Seek personalized advice tailored to your situation.
Vetting investment advisers thoroughly on qualifications, fiduciary duty, fees, performance history, risk alignment and expertise results in finding the best advisor for your needs. A great adviser guides you towards financial success over the long-term through intelligent investments and thoughtful planning. Be picky to find the right match.