The Importance of Choosing the Right Investment Adviser

The Importance of Choosing the Right Investment Adviser


Search the internet and there are hundreds of articles on how to pick a financial advisor. Other articles like this one discuss biases financial advisor’s may have that affect their portfolio recommendations. The shocking truth is most “Financial Advisors” are not investment professionals, but are sales and client service experts. While a necessary function of the job, it is not what clients think they are really getting. Investment Professionals will work at firms that are Global Investment Performance Standards (GIPS) compliant and have at least one of the following credentials: CFA (Chartered Financial Analyst), MBA (Masters in Business Administration), or CPA (Certified Public Accountant). Not all advisors are created equally. The public needs to be educated on the difference, planning vs. investing, and understand what they are buying.

Planning is important, but it is not investing. Most Financial Advisors do planning not real investing. They outsource that investing function to someone else. Some Financial Advisors do work at firms that are also investment firms so you get the best of both worlds, planning and investing. Tradition is one of the few firms that has the combination of investing and planning.

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