How To Find A Financial Advisor You Can Trust

It can be stressful to find the appropriate person you can trust regarding your hard earned cash and investing it appropriately. Alwaysbe careful that you don’t handover your hard earned money into unsafe hands.

How can you tell the difference between false prophets and legitimate financial advice?

How do you know if the financial expert sitting across the desk can actually help?

Is his primary interest to pad your pockets, or his own?

(C) Financial Advisers Blog
(C) Financial Advisers Blog

Below are 12 questions to consider before placing your trust in anyone claiming to be a financial mentor, advisor, money manager, expert, or guru.

This list results from a lifelong career as both an investment advisor and financial educator. It’s a common sense, insider’s guide to financial advice so you don’t get ripped off.

1. Is The Financial Advisor Already Doing Exactly What He Advises You To Do?

The advisor must have a successful track record practicing exactly what he preaches. Nothing less will suffice. What that means is:

  1.  Don’t get your investment advice from someone who built his wealth through marketing investment advice instead of actual investing. This holds true for many big-name financial gurus, money managers, brokers, and advisors.
  2. Don’t get your investment advice from someone whose primary function is to sell investment products (stocks, bonds, mutual funds, etc.) because it’s an inherent conflict of interest that biases the advice you receive. This is especially true for most stock brokers and financial planners. Instead, separate the investment planning function from the investment product sales function. Pay for each separately.
  3. Don’t get your financial advice from academics with lots of fascinating theories but little real world experience. Real world practicalities differ from theoretical academic assumptions.

Read more: https://financialmentor.com/financial-advice/how-to-find-a-financial-advisor/18285

 

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