(WSYR-TV) — By and large, the vast majority of financial advisors are very honest people that genuinely want to help. But, like everything, there are some bad apples out there. So here are some things to look for when making the decision to work with a financial advisor.
First and foremost, you can look up the disciplinary record of any advisory by going to the FINRA website or the SCC website. Input the name of the advisor and it lets you know if they have had any complaints or disciplinary action taken against them. If you see even one complaint, I’d be careful. But certainly multiple complaints where there is money paid out, I’d steer clear.
Secondly, if the investment advisor is providing you with an investment statement, it should be coming from a third party like Fidelity or T. Rowe Price or Schwab. If you don’t receive a statement from a third party, that’s very unusual and how Bernie Madoff was able to take advantage of so many people.
A third red flag is urgency. If you’re financial advisor is saying things like, “if you don’t do it right now, sign the paper right now, you’ll miss out” raise the caution flag.
And finally, if they seem evasive with answers to questions you are asking, steer away from them.
With Your Money In Your Pocket, I’m Rick Reagan.