Most people I speak to are unaware that a series of licenses are required to sell securities, mutual funds or insurance. At this time there are about 550,494 persons with a securities license (data from Registered Representative magazine). In 1984, there were around 250,000.

More importantly, only one third of the professionals in practice today were around for the last market crash in 1987. And I'm not counting all the folks out there that call themselves financial planners, don't have a securifies or insurance license and were earning a living in an unrelated business before haiging out their shingle.

"So, big deal, what if my investment consultant was a building contractor last year?" The experience and education your investment consultant has will directly affect the performance of your investments and your mental well being. It's easy for everyone to be an expert on the market at this time because the market has only been going up, but do they have the experience to guide you, offer advice and be a financial Dr. Laura when the market goes down?

It will be of great concern to you and your family when you turn on the nightly news and hear the stock market has dropped 30 percent in one day. You then call your investment consultant, ask what should you do and the answer on the other end is, "ah, I'm not sure, I've never experienced anything like this before."

You should quiz your potential investment consultant to your heart's content and be satisfied that they have a perspective of what lies ahead if the worst case happens. Don't forget, this is your hard-earned money that you are investing. If this person says to you, "Don't worry, the market is going up for the next decade," or "trust me, it's a trade secret," pass and interview someone else because this person is living in a fantasy world.

But remember, I said that this person should only have a perspective of what to do if the worst case happens. If I had all the answers as to what the stock market was going to do, I would own my own golf course. Will this person be there to answer your questions in a month, a year, how about in several years or will you have to adjust to a new representative several times in your relationship with the investments that you have made?

Is this person new to the financial services industry and if they are new, were they in a related field before? Investing only their own money doesn't qualify as a related field.

Other key things to look for in a investment consultant should be, do you like and trust this person? After all, you're going to be taking advice regarding your money. Do you get the feeling that you're just another number and that you don't matter? Will this person take your calls when you call in or not return your calls? And, most importantly, will this person take the time to explain in plain English, the mechanics of how your investments work? Does this person know the mechanics of how the investment works? You know what to do if they don't.

Remember, look for the three E's when searching for an investment consultant: EXPERIENCE, EXPERIENCE, EXPERIENCE. Ask the tough questions that should be asked, how long have you been in the financial services industry? Where did you get your training? Where did you go to school? Did you go to school? Can you give me some referrals of satisfied clients?

Does this person speak in plain English or do you need a financial language interpreter? Does this person give you the sense that they will take care of your financial needs? Be a smart investor and do your research.

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