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What to Look for in Hiring a Financial Adviser



Seeking investment guidance in midlife can be tricky, so many people tend to use experts for help. However, so-called “experts” can be more detrimental than advantageous sometimes.

According to Leida Snow, a Next Avenue contributor, she used to believe silver-tongued salespeople would never scam her successfully. “After all, I’m a savvy New Yorker with a successful communications business. But I got taken in by a so-called financial advisor at my bank, a large institution where I’d been a customer for decades.”

As a result, she constructed a guideline for investment enthusiasts to follow before hiring an investment adviser.

Don’t Let Credentials Fool You.

Anyone can proclaim himself or herself a financial adviser. And a few that do at banks or brokerage firms are glorified brokers, regularly with inadequate training or the proper experience.

However, there are Certified Financial Planners (CFPs) who are obliged to study and pass difficult tests to acquire this accreditation. Also, financial advisers recognised as fiduciaries must place their interests clients first. Notwithstanding, some who claim to be advisors aren’t fiduciaries.

An individual may possess credentials, but it doesn’t mean the acclaimed “pro” is straightforward. Hence, a trademark — even the name of a prominent bank — is no guarantee of expertise. It’s essential to research the complaint record of a financial adviser before hiring one.

Study the Fine Print.

Any advisor at a financial organization may promote an exclusive investment — such as one of its CDs — without disclosing that you may not be capable of transferring or selling any or all of it easily. It’s up to the client to find out the truth. According to Snow, countless people don’t consider asking what it will cost to purchase or trade investments their financial advisors recommend. It is necessary to take the time to read and know the fees charged.

Research On Investing and Advisers Before Hiring

There are various self-governing, noncommercial, resources that can support worried investors. Check for the ones from the National Association of State Securities Administrators (NASAA); the federal Securities and Exchange Commission (where you can spot “Top Tips for Selecting an Investment Professional;” “How Fees and Expenses Affect Your Investment Portfolio” and “Check Out Brokers and Investment Advisers”) and the financial services industry’s independent body, FINRA.

Also visit the independent Paladin Registry site , which has several resources for investors, as well as a free guide on how to examine possible experts.The Investor Protection Trust is committed to educating investors to be “wise and safe.” It has provided informative booklets, run workshops and produced a well-received range of investment education videos for public viewing.

Pennsylvania & New Jersey Securities Law Firm

If you or someone you know has been the victim of broker misconduct or investment fraud, please contact our securities attorneys immediately for a free consultation toll-free at 215-462-3330 or by using our online contact form.

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