5 mins
July 29, 2022

How to Find the Right Investment Partner

How to Find the Right Investment Partner

Watch out for these red flags when choosing a partner to help manage your investments.

If you want to understand the secrets behind someone’s financial success, look at the team they’ve surrounded themself with. No matter where you are in your journey as an Accredited Investor, the right partners can help you reach your goals faster and more efficiently. 

But with so many advisors, brokers, managers, and other professionals who want to convince you to trust them with your money, how can you find partners you genuinely trust, and how can you make sure that your money and your interests are protected? 

It’s largely up to you as the investor to do the work of researching and vetting anyone you trust with your money. To help you navigate that process, here are some key advantages to working with a great partner, as well as four red flags to avoid at all costs. 

Why Should You Partner with Someone on Your Investing Strategy?

If you’re an Accredited Investor, you have access to investment opportunities that the general public does not. These include private securities, hedge funds, venture capital, angel investments, equity crowdfunding, and private equity funds. 

These investment types provide the savvy investor with more opportunities to build wealth, but they also require you to put in extra work when evaluating potential investments. 

White and Orange Text on Blue Background: “What is an Accredited Investor? Find out if you qualify for these advantages! Read Now.

There’s always more to learn about investing, so if you try to find all your opportunities on your own, it can quickly become a full-time job. This cancels out one of the biggest benefits of investing, which is that it allows you to build wealth without giving up more of your time or working harder. If you’re managing all of your own investments, you’ll miss out on this advantage. 

An experienced investment partner can save you time and help you manage your risk by conducting due diligence on potential investments. They also can introduce you to new opportunities that they’ve learned about through their network, which you may not hear about otherwise. 

4 Investment Partner Red Flags to Avoid

A great investment partner will help you identify your goals and select investment vehicles that will get you where you want to go most efficiently. But it’s important to keep in mind that not all professionals in this space are equally trustworthy, experienced, or committed to your best interest. 

When choosing a new investment partner, it’s extremely important to do your research up front to make sure you aren’t getting scammed, or entrusting your wealth to someone who doesn’t adequately understand your needs.

To help you avoid those scenarios, here are a few key red flags to watch out for:

1. They Don’t Verify Your Accreditation Status

When you make any investment that requires you to be accredited, it’s up to the seller to verify that you meet the requirements. 

If any financial professional is willing to take your money for an accredited investment without first asking you to provide documentation that proves you’re accredited, you should immediately be skeptical. 

This shows that the professional is not careful about following all regulations, and they may be just as reckless with your investment. 

2. They Offer Advice Before Learning Your Goals

There’s no one-size-fits-all approach to investing, and any “expert” who tells you otherwise may not have your best interests at heart. 

In order to invest your money well, your partner should have a clear understanding of:

  • Your overall financial situation
  • Any specific investment goals you have
  • Your risk tolerance
  • The end destination you hope to reach, and your ideal timeline for reaching it

Unfortunately, many advisors and professionals forget that this is ultimately your unique investment journey. A great partner is one who will guide you along the way without trying to force you into investments you’re not comfortable with or tell you that there’s only one way to reach your goals.

3. They’re Only Focused on Short-Term Returns

When trying to promote a specific investment, many professionals will talk about the returns you can generate in just a few months or years. But if they’re not also concerned with how your investments will help you succeed for the long-term, then they’re not the best partner for you.

Strategies like day trading, or putting all of your money into a brand new asset class, rarely deliver the results investors expect. If you want to build wealth that will provide for you and your family for the rest of your life, then you should instead prioritize long-term investments. 

Any professional who tries to tell you otherwise is not someone you should rely on to help guide your broader investment strategy.

4. They’re Not Focused on Tax Efficiency 

Tax efficiency is one of the single most important characteristics of any great investment, but not all financial professionals prioritize it as they should. When vetting a potential new investment partner, make sure you ask them how their strategies can help you reduce your tax bill. 

If they don’t have a confident answer, or they tell you this is not important, then they probably lack the experience and focus you need to help you reach your goals. 

Partner with FGCP to Reach Your Goals More Efficiently 

At First Generation Capital Partners, we understand that every investor is unique. Whether you’re newly accredited and just starting to explore your options, or you’ve been investing for years and want to make sure your strategy is still working for you, we are a partner you can trust. 

By taking time to understand your goals and needs, we are then able to direct you toward tax efficient investments that help you reach your goals faster, without working harder. To connect with a member of our team and learn why we’re the right partner for you, fill out this brief form.

July 29, 2022
Billy Keels