Should you start to shield yourself?
There are many measures you are able to take to protect yourself? But if you follow these four steps you’ll be better shielded from the likes of Stanford’s and the Madoff’s of the world when you pick your financial advisor.
Referrals from other folks are the perfect way . As soon as you have start with measure one.
Your first step would be to visit finra.org, the people’s watchdog organization for financial advisors and brokerage firms.
This will let you check on both the brokerage firm and the adviser the financial advisor is affiliated with. It’ll be recorded here if there have been any issues or grievances with this special adviser or brokerage firm. You must do this first if the adviser was referred to you. Recall R. Allen Stanford and Bernie Madoff? Madoff did their company only through referrals.
Your second measure is in assembly, face to face, your prospective new financial advisor once you’re satisfied with what you’ve read on the FINRA website. This is your chance to interview the man who may be managing your life savings.
This is especially significant when you meet your financial advisor that is prospective.
Inquire yourself are they overly competitive? Too smug? Overly conservative? Overly laid back?
Recall this man is someone whom you’ll deal with for a long time. It’s hard to trust someone if you do not feel comfortable with the person.
The third measure is requesting this financial advisor for references. Inquire your financial, “Who are three customers of yours that I could speak to”? Now everyone knows that the adviser will give you three folks that s/he gets along with and understands. But that really isn’t the purpose. The purpose is the counselor’s reaction to the question.
Based on my expertise, this is a feeble reason. But what you’ve done is draw out the brokerage firm and the financial advisor so it meets your demands not theirs.
Perhaps you enjoy the thought of their not revealing any customer names under any conditions. Then again perhaps you do not enjoy the thought of this secrecy that is sensed. Ask for their contact information and three customer names. Call the folks. Listen to what other people must say quite attentively. Afterward determine when this is a man you’ll be able to work with, feel comfortable with, and can expect to trust.
I can not stress this strongly enough. You should look at at least three financial advisors before your selected. These four measures are only the start. It is cash and your time. What would you like to do?
Now that you have your advisor, take a look at GuardVest to help you keep them accountable!