Partnering with a trustworthy advisor will help you protect your money and also make the right decisions to help it grow. Unfortunately, it isn’t always a match made in Heaven.
Here are some questions to help you decide if it’s time to make a change:
- Does your financial advisor understand your financial goals?
Your advisor needs to have a clear picture of your long and short term financial goals, including target financial returns, amount of debt, employment plans, and estate planning needs. Does he ask questions and then listen to the answers?
- Does your financial advisor ignore your calls and emails?
If your financial advisor does not promptly return your calls or emails, that’s a warning sign. This is a personal relationship which requires regular contact with updates and information. Your advisor should be proactive and readily available.
- Does your financial advisor understand your risk tolerance?
If your financial advisor tries to convince you to take additional financial risk and it makes you uncomfortable, that is another red flag. Risk tolerance is an individual choice. You should never be put in the position of not understanding an investment or pressured to make a choice that you don’t understand.
- Does your financial advisor explain financial terms?
A financial advisor should explain investment choices in a manner that you can clearly understand. When it comes to investing, there are no dumb questions. You should feel comfortable asking questions to get a clear understanding of your advisor’s recommendations.
- Have you “BrokerChecked” your advisor?
FINRA BrokerCheck is an important tool that can gives you a snapshot of a broker’s employment history, licensing information and regulatory actions, arbitrations and complaints. You can also call the SEC’s Investment Adviser Public Disclosure database. Your advisor may have numerous customer complaints against them and you don’t even know it.
The foregoing information is being provided by The White Law Group. The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For information on the firm please visit www.whitesecuritieslaw.com.
For a free consultation with a securities attorney, please call The White Law Group at 1-888-637-5510.