Robert C. Port, Super Lawyer – Selecting An Investment Advisor

Robert C. Port is a business litigation attorney practicing with Gaslowitz Frankel, LLC. He is author of Georgia Business Litigation and has a blog covering diverse subjects such as “Why You Shouldn’t Wait Until the Divorce is Finalized to Update Your Estate Plan,” “Investing 101: Things to Consider and Questions to Ask,” and “How Long Do I have to Contest a Will in Georgia.”

Recently, Financial Planner David E. Hulstrom, with Financial Architects, wrote: “Robert Port is one of the smartest people I know and he specializes in securities and fiduciary litigation (i.e. helping clients whose financial advisors and other fiduciaries haven’t acted appropriately).” Hultstrom then attributed the following advice to Robert Port when selecting a financial advisor:

• Avoid anyone who is compensated based on commissions, sales contests, a percentage of the investment sold, or any other sales incentives.
• Use only “fee only” investment advisors who have a fiduciary duty to you.  Not stockbrokers.  Not insurance agents.
• Avoid anyone (and any firm) that claims to be able to “time” the market, to know exactly the right time to buy or sell, does any active trading, sells “products,” or promotes hedge funds, “non-traditional” investments, or illiquid investments.
• Use investment advisors who take the time and effort to determine your individual investment needs and risk tolerance.
• Avoid anyone who has the same investing solution for everyone.
• Use an investment advisor who will broadly diversify and allocate your assets over many investment categories (US and international stocks and bonds, large cap and small cap, emerging markets, etc.) and will stay with the plan long term, even during market ups and downs.
• Use an advisor who is aggressive about saving you fees and costs – my preference is for an advisor who primarily uses low cost index-funds.

See Financial Architects article for more on selecting a financial advisor
See also, Robert Port, Everything I Know About Investing I learned in Court