Investment Advice is guidance from a professional on one or more transactions involving financial instruments (stocks, bonds and other securities). This includes recommendations on how best to invest funds and is personal to the client. Financial professionals that provide investment advice must meet certain requirements including a passing score on an exam and filing forms with the State to become registered or licensed. Some advisers may have fiduciary duties to clients and must disclose potential conflicts of interest when giving advice.

If you’re considering working with an Investment Advisor, start by checking their BrokerCheck status online. This will give you an overview of their background and history. It’s also important to consider how often you plan to trade and how much you want to manage your investments yourself versus hiring someone to do it for you.

Essential Investment Advice for Beginners

You should also consider how your investment adviser earns money. Many investment professionals charge a flat fee for managing an account, which can be less expensive than paying commissions on each transaction. Other options include robo-advisors, which use algorithms to create and manage an investment portfolio based on your risk tolerance, financial goals and how long it will be before you need to access the money (called your time horizon).

Keep in mind that investing is a marathon not a sprint, so keeping your focus on your long-term financial objectives can help stifle your urge to sell during a market downturn. Investing in low-cost mutual funds is another good way to build your wealth and diversify your holdings over time.