How To Analyze Your Investment Advisor's Performance

How can I analyze my advisor's performance?

When trying to determine if your working with a good investment advisor or evaluating your advisor's performance, think about why you are working with this investment advisor, and what the investment advisor's role is, and how the investment advisor is helping you. If we're talking about a traditional financial planner, or investment advisor, that person isn't really there to pick and choose stocks for you. Those should be experts, people running mutual funds, that's all they focus on. So an investment advisor is not necessarily putting in a historical performance. It's more a question of whether this investment manager listens to what I have to say. Does my investment manager understand me? Does my investment manager help make sound recommendations? Is my investment manager willing to spend the time to explain why they're making one recommendation over another, and ultimately also what is the investment manager's motivation. How is the investment manager being compensated for making recommendations, and does different compensation affect recommendation they might make what potential conflict of interest really exist with the investment manager.