How do I know if my financial advisor is giving me good advice?

I don't know much about investments and stocks, so I trust my advisor to make all of my decisions about my IRA. All of the money is in one mutual fund, is that normal?How do I know if my financial advisor is giving me good advice?
rediculous to expect 24%,





8k is not a lot to invest, so depending on the fund you are just fine with one fund, there may be some fees that come with a low account balance that your advisor is saving you from, sometimes an account with over 10k in it has some benefits, hard to say without knowing the fund,





you cant just say that it is a bad advisor because its in one fund, and you absolutely cant say that you cannot have all your money in one fund, you just dont know the situation,it could be a target date fund,where the money should only be in one fund,





how old are you and what fund does he have you in?How do I know if my financial advisor is giving me good advice?
Having everything in one stock is really, really bad. A mutual fund is contains a group of stocks. It can be a few or it can be a whole lot of individual stocks. Nevertheless, investing in only mutual fund is also really, really bad. If anything goes wrong with that fund you are wiped out. Your advisor is giving you bad advice and direction. There are different categories of mutual funds: Aggressive growth, foreign, growth, small cap, large cap, tech,etc..... You want to be diversified within the fund and in the types of funds you have your nest egg in. If your advisor is part of a larger company talk to another advisor in the company. It's time to move either to another advisor, or better to another company. Also, just do a search on Google, or Yahoo on how to invest in mutual funds. They will give you a good basic primer of how to diversify. It really isn't that difficult.





Remember, the worse thing you can do is just give someone your money and hope they do well by you. This guy may be getting kickbacks from the fund he has you in. Or, he may just be an idiot.
You can tell if the information is given by a advisor who is paid by salary by his firm and not commission. That way he has nothing to gain from giving you advice on a particular stock.
My question would be how much money is in your IRA? If it is less than $2,500. then being in one mutual fund is find. If it is more than that then it should be in more than one. What he is doing is keeping all of your eggs in one basket and we know what happened with Enron employees who kept all their IRA money in company stock.





I would question his reason for keeping it in one and discuss the principals of diversification. You really do not want to keep it in one in case something happens that causes that sector to go down. You need to be in more than one sector so that when one goes down it will be offset with one that goes up. This happens all the time.





I would discuss this with your adviser and if he is not willing to make some changes, I would look for another ad visor.
If you are making at least 24% yearly then your Financial Advisor is giving you good advice.





It's not wise to invest all your money in the same Mutual Fund.





If that is not the case then fire him and let me help you for FREE.





Top 5 Answerer.
Earliest in 2or 3 months and if longer in a year. By this time, you will know what happened to ;your investment and you can always make a decision to continue or have an alternative source. Financial advisors or cos., for the same purpose can be evaluated even before entering into agreements through their fianancial results and the website with FAQs.


VR
If you are not sure if your FA is giving you a good advice. Consult more FAs and if the advise is the same. It might be a good advice. It is normal if you do not have the time to invest and all in a mutual fund. I do hope that your investment is based on long term not short term.
The questions are, how broad based is the fund (is it very well diversified) , how much does the fund cost; is your adviser compensated by the fund, do you qualify for breakpoints by putting in a large sum.





Also find out if their is a CDSC if you pull out your money.





How much is in your IRA; if you say under $10k, then nvesting in one fund is not so odd.
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