How to Choose the Right Investment Advisor — A Step-by-Step Guide

Choosing the right investment advisor is a critical step in achieving your financial goals. Here’s how to evaluate whether an advisor is truly qualified, trustworthy, and aligned with your needs:

Step 1: Verify Registration and Legal Standing

• Check SEC or State Registration
  Search on adviserinfo.sec.gov using the firm or advisor’s name. 

  
  

• Review Form ADV (Parts 2A & 2B)

• Form ADV Part 2A describes the firm’s services, fees, conflicts of interest, and business practices.

• Form ADV Part 2B shows the individual advisor’s education, background, credentials, and any disciplinary history.
  Ask for both parts before making a decision.

  
  

Step 2: Check Licenses and Credentials

• Required Licensing:
  Look for valid investment advisor licenses such as:

• Series 7 + 66 or Series 65 – Required for Registered Investment Advisors (RIAs) registered with the SEC or most state regulators.

• CFP® (Certified Financial Planner)

Step 3: Evaluate Experience and Background

• Years in the Industry
  More years doesn’t always mean better—but it does help. Ask about their client base, markets served, and specialty areas.

• Cross-Border Experience 
  For global families or immigrants, choose someone familiar with cross-border planning, immigration issues, and international asset coordination.

  
  

Step 4: Assess Communication and Language Fit

• Bilingual Communication
  For Chinese-speaking families, it’s critical the advisor can explain complex financial concepts in both English and Chinese—not just translate, but truly localize.

• Cultural Understanding
  An advisor who understands your family values, education priorities, and decision-making style will build a more personalized plan.

Step 5: Confirm Fee Structure and Fiduciary Duty

• Fee-Only vs. Commission-Based

• Fee-Only: No hidden commissions. Transparent.

• Fee-Based or Commission: May involve conflicts of interest.

• Fiduciary Standard
  Confirm the advisor is always acting in your best interest—not just when convenient.

Step 6: Meet and Interview the Advisor

• Prepare questions like:

• What is your investment philosophy?

• How do you manage risk?

• How often will we meet?

• What services are included?

• How do you handle market downturns?

• Consider a free discovery meeting to gauge comfort, communication, and trust.

Step 7: Evaluate Technology and Service Model

• Is there an online dashboard?

• Can they work with your attorney, CPA, or overseas family members?

Final Advice: Trust, Transparency, and Long-Term Fit

• The right advisor should make you feel heard, understood, and respected.

• This is a long-term relationship—look beyond investment performance to values, service, and integrity.