I’m often asked if investors should trust their financial advisors. And my short answer, you may be surprised to hear, is “No.” Given all the greed and deceit in the world of financial services you shouldn’t have to trust your financial advisor.
Here is a list of eight safeguards that should be in place to help safeguard your money:
Safeguard #1: Do Not Allow Your Advisor to Have Custody of Your Investments |
Safeguard #2: Walk Away from “Too Good to Be True” |
Safeguard #3: Insist on Publicly Priced and Traded Investments |
Safeguard #4: Buy Investments That Trend Upward |
Safeguard #5: Understand Your Investment Strategy |
Safeguard #6: Recognize And Avoid Financial Hooks |
Safeguard #7: Avoid Investment Advisors Who Sugarcoat Reality |
Safeguard #8: Avoid an Advisor with a Lavish Lifestyle |
You Deserve a Fiduciary Standard of Care Here is an article on how to understand the difference between a fiduciary standard of care and a suitability standard. |
Ten Questions to Ask a Financial Advisor Here are ten questions you should ask any prospective financial advisor. |