Getting behind in your personal finances?

• Author: Gallea, Anthony
• Position: Personal Financial Planning

As your personal investment strategies begin to pay off, you may find that you need to shift the focus of your attention to managing people and concepts, not assets. The practical signs are easy to spot: You give your investments 30 minutes of attention on the weekends, your checkbook goes unbalanced, and unopened brokerage statements pile up on your desk next to other paperwork requiring signatures. It's the I'llGet-To-It Syndrome, and it signals a need for change in your investing behavior.

Say you have $250,000 in investment assets, consisting of stocks, bonds, and cash. (This figure doesn't include real estate, since many executives don't have time to properly invest in real estate, which requires on-site management, limits liquidity, and is loaded with fees that lower potential returns.) The problem for successful executives is not finding a mutual fund for $2,500 but finding an investment strategy for $250,000.

Once you move to this level in your personal finances, your investment plan needs more attention in creation, implementation, and monitoring, and you may need professional help. One rule of thumb is to hire an investment advisor as soon as you can afford to-beginning when your investments reach $100,000, although $250,000 allows for greater investment diversity. But the criteria for making prudent choices of advisors-or investments-are not in the apples-to-apples category.

THE ADVISOR HUNT

Nobody ever said finding a good advisor is easy. Here are a few tips:

* All companies promise good investment work. In any company, however, whether brokerage house, bank, or financial Planner, there are individuals who have developed superior skills and experience in handling large and sophisticated portfolios. These senior people should be readily identifiable to you by their lists of client references.

* If someone claims to be an investment expert, he should be able to provide you with several names and telephone numbers of people in your investment situation. Once you have these names and references, use them. Call each person and ask about his experiences with this financial advisor and if he is satisfied with the performance. Is the advisor accessible? Can you call at any time and get the attention you need? Is the advice comprehensive, thoughtful, and pertinent? Are the fees reasonable? Has he referred others to the advisor?

* Since it's going to be your money at risk, interview the advisor very carefully. Listen closely. Is the...