If the bear market has you in the market for a financial advisor, interview a few before making any commitments. Here’s what to look for:
A personal upfront evaluation. An advisor should make a thorough effort to discover your individual circumstances before recommending any investments.
Full disclosure. All of the fees you will pay should be fully disclosed, at the beginning of each engagement.
Treatment of existing holdings. If an advisor tells you to sell everything, that might trigger a large tax bill. An advisor should try to keep some of your existing assets, if possible, and build the rest of the portfolio around the retained holdings.
Consolidated reporting. You should be able to receive one statement covering all of the investments under an advisor’s management. This will help you visualize your current holdings and determine how your investments are performing.
