WHEN CHOOSING FINANCIAL PROFESSIONAL, 'TRUST' IS KEY (FINANCIAL FOCUS)

This "Financial Focus" column is prepared by Edward Jones Investments, headquartered in St. Louis. Jones includes branches throughout the nation, including Cape Girardeau and Jackson.

When people select a broker or financial consultant, they naturally want someone who will help them make money, but is this desire based on short-term thinking?

Of course, there's nothing wrong with wanting to make money. Investment experts are of little use to you if they cannot help you accumulate more than your have. However, when you are looking for someone to help you with your investments, you need to consider factors other than the sheer ability to make money grow.

So what, exactly, should you look for? You might borrow from the experience of retirees and pre-retirees, the demographic groups rely most heavily on financial consultants. For retirees and pre-retirees, trustworthiness is even more important than investment performance when selecting a financial professional, according to a major new survey sponsored by the Forum for Investor Advice, an independent organization that provides research to the financial-services industry.

The retirees and pre-retirees surveyed said that maintaining a long-term relationship with a trusted consultant is the key to achieving their financial goals.

Why is it so valuable to establish this kind of relationship? It's valuable because, quite simply, you'll get better recommendations from someone who knows your needs, your goals, your preferences and your tolerance for risk. And a financial professional can only gain this expertise by working with you over time.

You'll find that many, if not most, financial-service providers have access to the same research, technology and other "tools of the trade." So, how will you know with whom you want to establish a long-term relationship?

You can start by asking your friends and relatives whom they use. Find out whom they think is trustworthy, and why. Then, interview several of these professionals. Don't be afraid to ask as many questions as you want. Find out if they've worked with people in your situation, what their investment philosophy is, how they get paid and how often they like to review their clients' portfolios. Find out how many clients they have, and how much time they will be able to devote to you. Then, try to envision working with this person for years to come. Trust your instincts but back them up with lots of information.

There are very few areas in life that are more personal than your finances. That's why you can't trust them with just anyone. Fortunately, you can find a financial professional who will look out for your needs first, last and always. Don't settle for anything less.

The Southeast Missourian does not recommend that readers buy or sell stocks featured in this column, which is provided for informational purposes only.