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Frequently Asked Questions


What does an investment advisor do?

An investment advisor or money manager does the job of investing and caring for a client’s portfolio.  An investment advisor is required by law to work for the best interests of the client.  This includes being sure the investment choices are appropriate for each individual client, reporting the results to the client, and also making changes to the portfolio and providing advice to the client as needed.

How can an investment advisor help me?

Most investors simply don’t have the time or specialized knowledge and training it takes to properly manage an investment portfolio.  Instead, they choose to hire a professional to do it for them.  This takes the burden off of the investor, and most often results in much better investment performance.  Investing without professional help is very much like trying to represent oneself in court without an attorney. 

Can’t I just invest in a mutual fund and get the same results?

While there is a lot of discussion about the benefits of investing in mutual funds, one must keep in mind that the fund is investing for its own specific goal, not for the individual investor.  This means that the mutual fund may or may not meet your specific needs and goals.  An investment advisor creates a portfolio specifically tailored to each investors needs.  As those needs and goals change, the investment advisor will adjust the portfolio accordingly, whereas a mutual fund will not.  It is far more important to build a portfolio around your objectives than to try and change yourself to match the objectives of a specific mutual fund.

How does an investment advisor get paid?

Most stockbrokers and financial planners are paid by commission.  This means that they are paid more if they sell more, which may not be in the best interest of the client.  Most investment advisors, including Advantage Investing, are fee-based.  This means they are paid a fee over time that is based upon the size of a client’s account.  This gives the advisor even more incentive to watch out for the client’s best interests rather than just trying to sell them a financial product or service.

Won’t I make less money if I pay a fee?

It may seem that paying a management fee to an investment advisor would take away from the profits in an account.  However, because of the value added by an advisor in creating and managing your portfolio, the returns are usually much better than they would be otherwise – even after the fee. 


How can I choose an investment advisor that’s right for me?

Just as there are many different types of investments, there are also many types of investment advisors.  Some are more active managers while others are not.  A good advisor will have a specific methodology to investing and the knowledge and experience to do the job right.  You should choose the advisor with whom you are most comfortable and whose methodologies make sense to you.