Even before an investor considers getting an advisor, I think there’s a more fundamental question that needs to be asked. Can I do this alone? In all honesty, if you’re content with investing in “traditional” securities, such as mutual funds, stocks and bonds, I don’t think it’s that hard to learn to invest. Many companies have a wealth of resources available to aid the “self-directed” investor.

Now, if you’re in the camp that has no interest in learning about investments, picking the right person is key. Unfortunately, there’s no surefire way to do this. However, this applies whether you’re talking about mechanics or doctors. Competent financial advisors certainly have the right to earn a living. Depending on your level of assets, even advisors at big firms can have significant influence over the fees you pay. Fees are important because they can negatively impact returns. The key is full disclosure (which they’re legally required to do). Now, getting through that mound of paperwork they give you is another story. . .