What else do I need to think about when
selecting a broker or advisor? The truth
is you need to do your homework before
making this decision. Before trusting
your money with a broker or investment
advisor it is very important that you
know whether the person is registered
with the SEC or with a state securities
regulator. Why? Because if they are that
means they have to follow certain
important rules that are designed to
protect you and your money. If your
financial professional is not registered
with the SEC or a state regulator you do
not receive those important protections.
Investor.gov has a free and simple
search tool that allows you to find out
if your broker or investment advisor is
registered with the SEC or a state
regulator. You can also learn what
licenses the person holds, where he or
she has worked, and if he or she has had
customer complaints or prior
disciplinary history. These are important
issues. I can't tell you if a broker or
an investment adviser is right for you
but I can tell you that the right choice
is important and you need to know the
services they provide and how they are
paid for them. So before you make a
decision please take some time to think
about it and to ask the broker or
investment advisor who wants your
business about their services and how
they are paid. Don't forget to check
out Investor.gov for more information
including examples of some questions
that can get you started in a
conversation with the broker or
investment advisor you are considering
including my favorite question if I work
with you how much of my money will go to
work for me. Don't hesitate to let us
at the SEC know anything we can do to
help you.
