Investment Advisory

Investment advisory is the process that advisors help you help you invest wisely. Companies offering investment advisory may offer the following services:

  • Personalized investment inventory
  • Goal and risk evaluation
  • Custom wealth management and asset allocation plan
  • Periodic re-evaluations of your investments

Each company will approach investment plans in a different way. However, your advisor should be able to customize an investment plan that changes over time to continue to meet your needs. You should be able to be as involved in the investment process as you want to be. This is the concept known as discretionary vs. non-discretionary advisors. Discretionary advisors must involve their clients in their decision making process. Non-Discretionary advisors make the day-to-day investment decisions based on your needs, but without your input.

Here are a few questions that you should ask your investment advisor during this process:

  • Who should have a say in decisions? Some advisors will leave the decision up to you, but some will not. You should also decide who else should be involved in investment meetings. Do you have a co-owner, business managers, shareholders? You could stand to benefit from these other people’s knowledge
  • Will your advisor complete a business inventory? We strongly advise that you have a professional complete a personal business inventory. This will help you realize how much your business is worth and re-evaluate your goals around that. In fact, you should have an inventory completed periodically.
  • What is included in my personal inventory portfolio? A big part of the investment advisory process is putting together a portfolio that includes a balance of risk and profit. Some advisors focus on one type of investment. However, we suggest that you steer away form a portfolio that only involves one type of investment.
  • What risks will my business face? Part of the process of investment advisory will involve deciding how much risk you should take. If your business is small or new, your instinct might be to steer away from all risks. However, this is impossible. Your advisor should be able to evaluate which risks might prove beneficial in time and which risks do not fit your financial goals. Just know that your business will have to take some risk if you wish to prosper from your investments.
  • How will you help me reach my goals?It is crucial that you sit down with your advisor early on and go over your short and long term financial goals. If your investments are helping you reach your goals, then you need to re-evaluate them. Your investment should mirror your business’ goals, whatever they are.
  • How often will my financial/inventory plan be re-evaluated? Any business plan must be re-evaluated periodically if you want to prosper from them. Your investments should change and grow with your business. Make sure that you ask your advisor how often you should meet to look over your investments and business plan, and any new goals that you may have.

We want to help you navigate through the investment advisory process so you can come out on top. If you want help finding an advisor or putting together an investment portfolio, contact us.

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