The Investment Checklist: What Every Investor Should Expect from Their Advisor

Investment Process, Investment Methods, Research, Support, Awareness of Financial Plan and Financial Planning Process

If you’re considering hiring an investment manager, you’re likely feeling a mix of hope and anxiety. You want your money to grow, but you also want to avoid costly mistakes and ensure your financial future is secure. How do you know if you’re getting real value from an advisor-and what should you expect from a truly professional investment process?

At Sterling Edge Financials, we believe in empowering investors with transparency, evidence-based strategies, and a disciplined approach. That’s why we’ve developed a comprehensive investment evaluation checklist. This isn’t just a list of tasks-it’s a roadmap for what you should expect from any advisor you hire, and a tool to help you understand the value behind each step.

Why a Checklist Matters

Imagine boarding a plane and seeing the pilot skip the pre-flight checklist. You’d be nervous-and rightly so. Investing your hard-earned money without a structured process is no different. A robust checklist ensures nothing is overlooked, risks are managed, and your goals remain the focus.

Let’s walk through the essential steps every investor should expect from their advisor-and why each one matters.

1. Global Diversification: Spreading Your Risk

Checklist Questions:

  • Is my portfolio diversified across regions, sectors, and economies?

  • Does it capture global growth opportunities for long-term stability?

Why it matters:
Diversification is your first line of defense against unpredictable markets. By spreading investments globally, you reduce the risk that any single market event will derail your progress. This approach is proven to enhance long-term returns and smooth out the bumps along the way.

2. Factor-Based Asset Allocation: Evidence, Not Guesswork

Checklist Questions:

  • Am I using evidence-based factors (like value, size, momentum) to guide allocations?

  • Does my strategy balance higher expected returns with disciplined risk management?

Why it matters:
Decades of research (from Nobel laureates like Fama and French) show that certain investment “factors” can drive long-term returns. A good advisor will use these insights to build a portfolio tailored to your goals and risk tolerance-removing guesswork and emotion from the process.

3. Fixed Income & Income Strategies: Safety and Smarts

Checklist Questions:

  • Have I assessed bond credit quality, duration, and interest rate sensitivity?

  • Are my fixed income holdings aligned with my risk tolerance and income needs?

Why it matters:
Bonds and other income investments can provide stability, but only if they’re chosen wisely. Your advisor should dig into the details-like credit ratings and interest rate risks-to ensure your portfolio is both safe and productive.

4. Tax Efficiency: Keeping More of What You Earn

Checklist Questions:

  • Do I use tax-loss harvesting, asset location, and tax-efficient funds?

  • Does my plan reflect my tax rate, filing status, and long-term goals?

Why it matters:
Taxes can erode your returns if you’re not careful. A skilled advisor will use advanced strategies to minimize your tax bill-helping you keep more of your gains, year after year.

5. Rebalancing & Drift Mitigation: Staying on Track

Checklist Questions:

  • Am I rebalancing regularly to maintain target allocations and manage risk?

  • Am I aware of the costs of portfolio drift?

Why it matters:
Over time, markets move and your portfolio can drift from its intended mix. Regular rebalancing keeps your investments aligned with your goals and risk tolerance, preventing costly surprises.

6. Due Diligence & Optimization: Never Set and Forget

Checklist Questions:

  • Are my investments continuously researched and optimized for market conditions?

  • Are account titling and beneficiaries up-to-date?

Why it matters:
Markets change, and so do your needs. Ongoing research and optimization ensure your portfolio adapts-while regular check-ins on account details keep your estate plan in good order.

7. Reporting & Cost Transparency: Clear Communication

Checklist Questions:

  • Do I receive regular risk/return reports and cost-to-value analyses?

  • Are strategies transparent, with clear benchmarks for performance?

Why it matters:
You deserve to know how your investments are performing, what they cost, and how they stack up against benchmarks. Transparency builds trust and helps you make informed decisions.

8. Personal Financial Alignment: Your Goals, Front and Center

Checklist Questions:

  • Are my investments tailored to my goals, cash flow needs, and tax situation?

  • Have I provided updated tax returns and income estimates to my advisor?

Why it matters:
Cookie-cutter solutions don’t cut it. Your advisor should take the time to understand your unique situation and craft a plan that fits your life-not just the market.

9. Performance & Communication: Staying Connected

Checklist Questions:

  • How does my portfolio compare to relevant benchmarks over time?

  • Do I understand my advisor’s philosophy and receive regular updates?

Why it matters:
Ongoing communication ensures you’re never in the dark. You’ll know where you stand, what’s next, and how your advisor is working for you.

The Bottom Line: Confidence Through Clarity

Hiring an investment manager is a big decision, and it’s natural to feel nervous. But with a clear checklist and a transparent process, you can move forward with confidence-knowing your advisor is covering every angle, managing risk, and always putting your interests first.

If you’re ready for a conversation about how this process can work for you, or if you’d like a printable or digital version of this checklist for your own review, reach out today. Empower yourself to make smarter, more confident investment decisions.

 

Ready to take the next step?
Contact us for a no-pressure conversation about your financial future and how a disciplined, evidence-based process can help you reach your goals.

https://www.sterlingedgefinancial.com/ 

Book a Meeting with Kit Lancaster CFP 

Book a Meeting with Katie Sauer

 

Want to Learn More?

Here are some excellent resources supporting the value behind these steps:

 

This content is being provided for informational purposes only and should not be construed as specific recommendations or investment advice. Always consult with your investment professional before making important investment decisions. Diversification and asset allocation strategies do not assure profit or protect against loss. Indices mentioned are unmanaged and cannot be invested into directly. Past performance is no guarantee of future results. Investing involves risk. Depending on the types of investments, there may be varying degrees of risk. Investors should be prepared to bear loss, including total loss of principal.

Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer member FINRA/SIPC. Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Sterling Edge Financial LLC. are not affiliated.

Copyright 2025 Sterling Edge Financial

Disclosure:

Past performance is no guarantee of future results. The information provided herein is for educational and illustrative purposes only and should not be interpreted as investment advice, a recommendation, or a forecast of future performance. Investing involves risk, including the potential loss of principal. No strategy can ensure success or protect against loss in all market conditions. Clients should consider their individual objectives, risk tolerance, and financial situation before making investment decisions. Please consult with a qualified financial professional before acting on any information contained in this material.