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Close Topic OptionsFive Signs Your Financial Adviser Is A Fake
Five Signs Financial Adviser Fake - Politics, Business, Civil, History - Posted: 1st Sep, 2006 - 7:58am
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Five Signs Your Financial Adviser Is A Fake
This was a very informative article, well written and worth a read.
https://www.marketwatch.com/
QUOTE Five signs your financial adviser is a fake
Ask tough, skeptical questions as you would buying a house or car
Protecting yourself from a fraudulent adviser requires discipline, digging and a healthy dose of disbelief. It seems that a thorough vetting before handing over a check, then closely watching the handler, would be elementary. Spot a red flag, investigate and don't buy if something doesn't look right.
The trouble is that people are likely to be more cautious about car dealers and real-estate brokers than investment professionals. Maybe an adviser comes recommended from a friend or relative; maybe people see themselves as sophisticated investors, on par with the pros but too busy to manage their own finances. Or maybe clients are starry-eyed, naïvely believing an adviser's promises and plans.
Make a well-informed decision, said Scott Kays, a financial adviser in Atlanta. "Go into it with your eyes open," He said.
1. Fuzzy or thin background
2. Refuses to disclose fee arrangements
3. Always in sales mode
4. Downplays potential conflicts
5. Account statements lack details
After all, removing doubt is what you really want -- before you commit.
"If you get into our world with people who are smooth with their communication, one can be made to feel stupid very quickly," Schlindwein said. "Don't lose your common sense."
Ask tough, skeptical questions as you would buying a house or car
Protecting yourself from a fraudulent adviser requires discipline, digging and a healthy dose of disbelief. It seems that a thorough vetting before handing over a check, then closely watching the handler, would be elementary. Spot a red flag, investigate and don't buy if something doesn't look right.
The trouble is that people are likely to be more cautious about car dealers and real-estate brokers than investment professionals. Maybe an adviser comes recommended from a friend or relative; maybe people see themselves as sophisticated investors, on par with the pros but too busy to manage their own finances. Or maybe clients are starry-eyed, naïvely believing an adviser's promises and plans.
Make a well-informed decision, said Scott Kays, a financial adviser in Atlanta. "Go into it with your eyes open," He said.
1. Fuzzy or thin background
2. Refuses to disclose fee arrangements
3. Always in sales mode
4. Downplays potential conflicts
5. Account statements lack details
After all, removing doubt is what you really want -- before you commit.
"If you get into our world with people who are smooth with their communication, one can be made to feel stupid very quickly," Schlindwein said. "Don't lose your common sense."
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Post Date: 1st Sep, 2006 - 7:58am / Post ID: #
Fake Is Adviser Financial Signs Five
What a great article, thanks so much for the link! As someone looking into buying a house in the next year, and a new car much sooner, this is something I should look for even just when getting a loan or mortgage. Some of these things can be bad sings when getting a loan as well. I wonder how many business people just assume their financial advisor is trustworthy and end up losing thousands of dollars, or even millions for that matter. Maybe one day I will make enough money to have to watch after the financial advisor I hire!
TOPIC: Five Signs Your Financial Adviser Is A Fake