IRA Investment Guidance: How Much Do You Need?

When it comes to choosing IRA investments, many people are unsure how much guidance they should get from a financial advisor. Here are a few things to consider about how much you should defer to a financial advisor in regards to your IRA investments.

Getting Expert Advice

Generally, financial advisors know more than we do about most investments. They spend a great deal of their time researching investments and strategies. Consulting with them about a strategy, or a particular type of investment, can be a good idea. You should still do your own research by utilizing resources such as MorningStar or the Wall Street Journal. However, since you are paying for their services anyway, you should use them as your resource as well.

Commissioned Salespeople

On the other hand, you want to be careful how much you listen to your advisor. Financial advisers make their money by collecting commission on securities that you buy and sell. Therefore, they want to steer you to securities that they can make the most commission on. If they offer a particular product, most of the time, they are trying to sell you on a product so that they can earn commission. Take these recommendations and use them as a starting point for your research.