Last week, I mentioned an investment ad I had seen on a flight that pushed people to invest with a certain bank because of the bank’s location (Switzerland), its secrecy policies, and its “unique” investment schemes. I argued that none of these were sufficient reasons to work with them.
In the same magazine, I spotted an ad for a different institution that pointed potential investors in a different direction. Instead of focusing on form, poor content, or outlandish promises, this ad mentioned three conditions you should take into account when deciding where to invest:
Location
This bank noted their convenient location, which may be important for people who want a more personal relationship with their advisor. While timing the market is not crucial in financial success, it may be important to be in the same time zone as your financial advisor. This way, when you have a question or concern communication is easy. In fact, financial planning is as much about getting to know the client’s personal situation as knowing about how to structure an investment portfolio.
Education
The company also spoke about how they take the time to educate their clients. The investment world can often feel like a maze, and clients need a patient advisor who is more educator than salesman.
Personalization
Finally, the ad I preferred stressed the personal service they provide clients, not how rich the clients will become. Face it – if some company tells you they have the secret for beating the market with no risk, you can feel pretty sure that they are just trying to baffle you with blarney. Good service, on the other hand, is rare to find but a huge value in any business, especially in an investment firm.
Location, education, and personalization are factors you should take into consideration in deciding where to invest.
What do you look for when choosing an investment advisor? I’d love to hear your ideas (Doug@profile-financial.com).
Douglas Goldstein, CFP®, is the Director of Profile Investment Service, Ltd., which specializes in helping people who live in Israel with their US dollar assets and American investment and retirement accounts. He helps olim meet their financial goals through asset allocation, financial planning, and using money managers.
Published July 12, 2012.