Researching what stocks to buy isn’t like picking a dress or shirt to buy at the store. Unlike tangible items, buying stocks can result in profit or loss. When buying a stock, it is important to think about short and long-term effects. Typically, analysts advise investors to research a company’s financials, leadership team, and competitors before deciding whether to add a stock to their portfolio.
This process can be a daunting task, especially for beginner investors. Also, busy professionals may find it difficult to research stocks adequately, even in their spare time. Hence, the reason for investment advisors. Investment advisors are financial professionals that give investment recommendations and advice for a fee. In most countries, there are strict regulations governing investment advisory due to the uncertainties of the stock market. In the United States, these advisors must register with the Securities and Exchange Commission (SEC).
In recent times, investment advisory can be carried out by artificial intelligence. They are called Robo-advisors. A Robo advisor is a digital investment advisor that helps build an investment portfolio according to your goals and risk tolerance. Notably, Passfolio’s Smart Portfolio offers users a simplified approach to investing. Find out here.
Here are some of the things to look out for when choosing an investment advisor:
Choose which services you want
Investment advisors distinctively specialize in various aspects such as real estate, commercial, consulting, among others. Robo advisors are usually low-cost and streamlined. Human advisors can be more robust when it comes to being adept in different topics. However, it is essential to determine why you need an investment advisor before hiring one.
Consider your budget
Robo advisors are mostly affordable with annual fees. Human advisors might charge you based on the size of your portfolio. Others may charge a flat rate. Beginner investors mostly start with a Robo advisor and gradually book sessions with a human advisor as their portfolio increases. Keep in mind that there may be other costs associated with the underlying investments of the portfolio.
Research about the advisor
Like most ventures, you need to research your investment advisor before making a decision. Picking the right advisor might be a step in becoming a successful investor. For Robo advisors, do your findings of the company providing the services. When hiring human advisors, you can start your research online and ask their portfolios to get to know them better.
Financial and investment decisions can be complicated. Do not hesitate to seek help anytime when you are at the crossroads of making a decision. At a fixed 0.75% annual fee, Passfolio’s Smart Portfolio offers investors the chance to become better at investing. See Passfolio’s full fee schedule here. The advisor recommends a portfolio to you based on your investment goals and risk tolerance. In addition to that, Smart Portfolio periodically rebalances your portfolio with a diversified mix of ETFs.
Investing involves risk, including possible loss of principal.
Securities products and services offered to self-directed investors through Passfolio Securities LLC Member FINRA / SIPC.
Investors should consider the investment objectives, risks, and charges, and expenses of an Exchange Traded Fund (“ETF”) carefully before investing. Before investing in any ETF, you should consider its investment objective, risks, charges, and expenses. Contact us at firstname.lastname@example.org for a prospectus containing this information. Read it carefully.
Smart Portfolio is a type of managed account offered by Passfolio Advisers LLC that is designed for clients who seek a digital, discretionary investment management experience. For a more in-depth view of Passfolio Advisers LLC’s services, including fees, please view our Wrap Fee Brochure, Advisory Agreement, and Relationship Summary.