Better than burying my savings in the backyard
October 16, 2012 11:40 AM Subscribe
What do I need to know about hiring a stock broker or financial advisor?
posted by The Winsome Parker Lewis to work & money (8 answers total) 5 users marked this as a favorite
For a while now I've wanted to invest some money for the future, but I've found "investing" to be complex and jargony. I don't want to sink a lot of time into learning the system and the language, I'd rather let someone experienced handle it for me so I can focus on other things. Here are a few questions I've thought of... I'm a complete novice so feel free to volunteer other info I don't know I need. ;-)
1. Financial advisor? Stock broker? What should I look for in Washington state? I don't care if the money goes to the stock market or other places, as long as the investments are relatively low-risk and diversified.
2. I don't have much money to start with. Is there a baseline "small amount" I can bring without insulting the advisor? I don't want to reveal my cluelessness ("what can you do with $5.00?") and get laughed out of the office.
3. At a basic level, what can I expect? Do I drop off my money, let the advisor work some magic, and come back in a year to see if it multiplied? Or is it more hands-on, where I'm getting updates every week? Does the advisor make buy/sell decisions on my behalf, or am I required to explicitly approve each action? I'd prefer to stay hands-off and trust the expert's judgment about stuff like that.
4. More generally, is this even a good idea? If not, how would you recommend someone prepare fiscally for the future if he's not particularly knowledgeable or interested in the world of finance? What pitfalls should I avoid?