10 Tips To Help You Find A Superior Financial Consultant

10 Tips To Help You Find A Superior Financial Consultant



Even though the best financial consultant you could ever hire stares back at​ you every day when you look in​ a​ mirror, for those of​ you absolutely unwilling to​ learn how to​ do-it-yourself, here are ten tips to​ help you find that one financial consultant out of​ every 1000 that actually is​ fairly impressive.

To help me formulate this list, I considered some of​ the absolutely useless investment strategies I had learned at​ the world’s leading investment firms as​ well as​ the ridiculous focus of​ some boutique firms I had spoken to​ when formulating the long tail investment strategies that constitute the curriculum of​ my SmartKnowledgeU™ campus.

About five years ago, as​ I was just starting to​ develop and test my investment strategies that I now use today, I interviewed with a​ smaller, boutique investment firm in​ the Bay area of​ San Francisco that has a​ stellar reputation in​ the mass media as​ being on the cutting edge of​ revolutionary investment strategies. I thought to​ myself, if​ anything can reveal how far the top investment firms have evolved in​ their strategies to​ incorporate a​ changing information landscape to​ identify better investment opportunities, it​ will be my interview with this firm. Needless to​ say, I was stunned by the fact that this firm's strategies basically mirrored the same, old, strategies of​ every investment firm on Wall Street.

A top manager at​ this firm proceeded to​ ask me five key questions (key to​ him at​ least) that he strongly believed was important to​ making intelligent investment decisions. However, I felt that his questions were either irrelevant or​ too unfocused to​ be of​ any worth. I was astounded that this firm had managed to​ gather billions of​ assets from private individuals. After witnessing the incompetence of​ this top manager at​ a​ top investment firm in​ the United States, I was merely convinced that hundreds of​ thousands of​ people have been duped and bamboozled by very strong salesmen that are able to​ effect the appearance of​ investment experts but in​ reality, know close to​ nothing.

The only problem with this scenario is​ that since most people do not know the right questions to​ ask, they never learn that their trusted advisors know next to​ nothing. if​ investors don’t know the right questions to​ ask, investors can ask a​ hundred questions and still not receive any answers that will help him or​ her assess the level of​ that financial advisor’s competence. Ask better questions, receive better answers, and improve your returns three fold, four fold or​ even more.

So here are 10 questions to​ get you started:

(1)What is​ your strategy to​ select individual foreign stocks?

I’m not a​ fan of​ mutual funds. I know all about their hidden expenses besides the overt fees they charge, plus I don’t like the fact that a​ lot of​ foreign mutual funds take a​ beating whenever the masses have the slightest fear about a​ pullback in​ the markets. I think owning individual stocks is​ a​ much better strategy, especially in​ foreign markets.

(2)What strategies do you personally use to​ give me a​ good chance of​ earning 20% or​ higher without assuming great risk?

Look, I’m going to​ be honest. 6%, 7% even 10% a​ year doesn’t cut it​ for me.

(3)Where do you think will be the best performing markets for the next five years? What percent of​ my portfolio will you devote to​ these markets?

b>(4)This question is​ a​ follow-up question to​ (3). if​ the answer to​ question three was, for example China, Canada and Australia, then ask, How much of​ my portfolio should be in​ Chinese, Canadian & Australian stocks and why?

(5)If answer (4) does not make sense in​ response to​ answer (3), probe with more questions.

For example, if​ the answer your financial consultant tells you is​ 20% tops, then ask, if​ you tell me hands down that the best markets for the next five years will be in​ China,India and Australia, why are we only allocating 20% of​ my portfolio to​ these markets?

(6)What are the best asset classes to​ be invested in​ for the next five years and why?

I don’t want the standard diversification strategy applied to​ my portfolio that you apply to​ every other client here. I think it’s a​ terrible way to​ build wealth and don’t agree with it. Look at​ all the great individual investors that were able to​ build wealth by determining what assets were the best and then concentrating their investments in​ just a​ few asset classes.

Even if​ you tell me ,”Look at​ Warren Buffet who was a​ buy and hold buyer”, today we live in​ different investment times. The horse and buggy was the best way to​ get around at​ one time but not anymore. Investing has changed, and what worked in​ the past is​ not the best way to​ invest today.

(7)What effect will the global currency markets have on the best and safest places to​ invest this year and why?

(8)How are you using technology and the internet to​ improve portfolio performance for me?

What novel strategies do you use that leverage technology and increased accessibility to​ top-tier financial, economic, and political information to​ grant me the best chance of​ earning stellar returns?

(9)How will you safely invest in​ developing markets for me?

A lot of​ the best performing markets are emerging markets that also are prone to​ huge corrections. And remember I don’t like mutual funds and I don’t think mutual funds are safe either.

(10)Tell me 3 things that you do that no one else at​ your firm does in​ managing my money and why.

To understand what many of​ the answers of​ these questions should be, feel free to​ visit the Free Educational Resources at​ http://www.smartknowledgeu.com. if​ you receive intelligent answers to​ all the above questions, you may have just found yourself a​ winner.




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