Is Your Investment Professional Investing in You?
Aug 6, 2021
Matt Henry, STAR Wealth Management

It’s hard to know who you can trust. Investors need to be purposeful when selecting a partner to manage their investments. Three major considerations: 

Fees Matter

Brokerage companies charge commissions on trades, so brokers (“advisors” or “representatives”) take a commission from each transaction. This allows your broker to profit even if he or she delivers poor returns. 

Wealth management companies offer a wide range of services and generally charge on a “fee-only” (or percentage) basis. These companies only make more money when you do, so you’re always sitting on the same side of the table. In addition, many of these companies are fiduciaries: held to the highest legal standard of care. 

Education and Experience

In an industry that’s constantly evolving, “we’ve done it this way for a long time” isn’t a formula for success. While experience is valuable, it’s crucial that your professional stay up-to-date on innovations and trends in finance to give you the best possible advice. Check your professional’s email signature for alphabet soup: designations like CFA, CFP, and CAIA are difficult to achieve and demonstrate a commitment to continuing education. 

Valuing Relationships

Just like marriage, investment relationships work best when both parties value and respect each other. While you shouldn’t select an investment manager who is unqualified or a poor match for your needs, the highest priority is finding a true partner that cares about you and your goals. If your professional truly wants you and your family to succeed, the odds go up significantly that you will. 

• Not FDIC insured • Not guaranteed by the bank • Not a deposit • Not insured by any federal government agency • May go down in value

STAR Wealth Management

Phone: (317) 566-3130


Lake City Bank - Business Lending

Related Stories