Loot! is designed to help you to steer your way through investments from an informed position, but you can't isolate yourself entirely from advice because, quite simply, you can't be an expert in everything. When you do seek advice, however, it's important to be able to measure the quality of the advice available to you, and the motive of the advisor.

First off, there are three basic types of advisor:

1. A bad advisor usually trips up, at which point their poor quality becomes apparent. The problem is that bad advisors can get away with it for a long time, expertly disguising just how bad they are. If continually followed, their advice is a bit like weeping gelignite �V and the results can be just as
dramatic.

2. A good advisor is worth his or her weight in gold. Don't be afraid to pay a little bit more: if the advice is good, it can dramatically improve your long-term position. Remember, advisors are in business to make a profit from giving you advice. If you are driven by bargain basement fees or commissions, don't expect to retain a good advisor.

3. Then there's the just-about-competent advisor, who's probably the worst of the bunch. His/her advice is never really bad enough for you to actually sever the relationship, but it's never really good enough to really help growyour financial strength robustly. You become trapped in a relationship of
niceties and gritted teeth and your portfolio stagnates.

How can you tell an advisor is good?

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