Having the right person in charge of making investments for you is imperative in order for you to make a profit on a consistent basis. There are a ton of investment firms who are always bragging about the large returns they get for their clients. Some of these claims might be true. However, you need to be very careful about who you entrust with making your investments. You will basically be putting your financial future in the hands of this person. Therefore, you need to be absolutely sure your investment manager knows what he or she is doing. You should never assume that all people in the investment industry have the same level of skill or knowledge. That is not the case. Here are the most crucial things you will need to think about during your quest to secure the services of a top investment manager.
1. Get recommendations from people you know very well.
You can always use the experiences of others to help guide you when you are looking for an investment manager. There is a pretty good chance that many people you know have people making investments for them. You would be smart to talk to these people and find out everything they have gone through. How long have they been using that particular investment manager? How much profit has he or she made for them? Are they satisfied with the job the investment manager has done? How much of a commission does he or she charge? Would they recommend that you use the same person to make investments for you? The answers that your friends give you to these questions will be a great help to you.
2. Only consider dealing with an investment manager who has an impeccable track record of success.
You should obviously never hand your money over to a person who is fresh out of college. You need to hire a person who has been making investments for many years. You should also focus on people who have a proven track record of making consistent profits for their clients. Not every recommendation an investment manager gives you will be good. However, you need to find someone who is right the majority of the time. Chris Pivik is an example of someone who has a great track record in the investment banking industry. Businessman Chris Pivik now handles private equity investments.
3. Do not hire an investment manager who charges very high commissions.
One of the problems that many people run into when they are investing involves the high fees that many investment managers charge. This is something that you need to pay very close attention to. There are some investment managers who will do a very good job for you. They will make you a sizable return on your investments. However, a huge portion of your profits will be eliminated because of the high fees the investment manager charges for his or her services. There will be no point in investing if all of your profits are going into your investment manager's pocket. Shop around and compare the commission percentages charged by investment managers in your area. You can then figure out which person will give you the best deal. However, do not let price be the only reason you hire someone.