EDU Articles

Learn about investing, trading, retirement, banking, personal finance and more.

Ad is loading...
Help CenterFree ProductsPremium Products
IntroductionMarket AbbreviationsStock Market StatisticsThinking about Your Financial FutureSearch for AdvisorsFinancial CalculatorsFinancial MediaFederal Agencies and Programs
Investment PortfoliosModern Portfolio TheoriesInvestment StrategyPractical Portfolio Management InfoDiversificationRatingsActivities AbroadTrading Markets
Investment Terminology and InstrumentsBasicsInvestment TerminologyTradingBondsMutual FundsExchange Traded Funds (ETF)StocksAnnuities
Technical Analysis and TradingAnalysis BasicsTechnical IndicatorsTrading ModelsPatternsTrading OptionsTrading ForexTrading CommoditiesSpeculative Investments
Cryptocurrencies and BlockchainBlockchainBitcoinEthereumLitecoinRippleTaxes and Regulation
RetirementSocial Security BenefitsLong-Term Care InsuranceGeneral Retirement InfoHealth InsuranceMedicare and MedicaidLife InsuranceWills and Trusts
Retirement Accounts401(k) and 403(b) PlansIndividual Retirement Accounts (IRA)SEP and SIMPLE IRAsKeogh PlansMoney Purchase/Profit Sharing PlansSelf-Employed 401(k)s and 457sPension Plan RulesCash-Balance PlansThrift Savings Plans and 529 Plans and ESA
Personal FinancePersonal BankingPersonal DebtHome RelatedTax FormsSmall BusinessIncomeInvestmentsIRS Rules and PublicationsPersonal LifeMortgage
Corporate BasicsBasicsCorporate StructureCorporate FundamentalsCorporate DebtRisksEconomicsCorporate AccountingDividendsEarnings

Do I Need an Advisor on a Permanent Basis?

Short-term advisor relationships do not tend to be very productive, and can sometimes be counter-productive, but advisors may still be useful for one-time consultations when an investor just wants an opinion on a specific issue.

A long-term relationship with one advisor is preferable to many short-term relationships. Meeting with a new advisor will usually be part of a transition period where an investor is looking to try something new. The advisor may start out with some preliminary planning but the investor may jump to the next advisor before the former advisor could really shape the plan he or she was seeking to build.

The investor may lose out on compounding effects or the benefits of long-term asset allocation strategies by making too many short-term changes. Of course, a permanent relationship with an advisor means that the client is paying fees to the advisor in some way, and most of the readers here at Tickeron are the type to ask if it’s worth it.

If your portfolio is large, complex, and hard for you to keep up with, you may benefit from paying someone to do that for you for the foreseeable future. An advisor in this situation is most likely to charge a fee as a percentage of assets under management (AUM), which is usually 1-2%.

Do I Need a more Specialized Financial Advisor?
How Many Financial Advisors Do I Need?

Ad is loading...