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Financial knowledge is crucial. When it comes to finances, most people accept that they lack information and therefore look to experts who can help make things clearer. The problem is that not all “experts” are truly reliable. In fact, some so-called financial advisor credentials are actually available for purchase online. It can be quite difficult to figure out whether or not the financial advisor before you is reliable. It’s a bit problematic, as even frauds come with “credentials.”
Here are a few warning signs to help you figure out if you are dealing with a trickster:
- Lacks actual experience
- Sales mode on
- Insufficient information
- One-sided advice
This being the case, you have to be very particular in choosing the right financial advisor. In order to make sure you're getting the advice you deserve, you have to know what to look for.
These are some of the qualities you ought to look out for when selecting an advisor:
- Expertise training
- Availability
- Logical planning
- Risk aversion
- Constantly updating
Since even credentials can be questionable, it’s useful to have organizations that you can actually fall back on to make sure that you’re getting a real advisor. Many licensing bodies publish rosters to help you check the credentials of investment advisers and stockbrokers. Reports published by the U.S. Securities and Exchange Commission are a great place to start.
Of course, it would be best if your advisor were part of a well-known organization that upholds stringent ethical standards. This is the best way to ensure that a third party will be able to police your advisor’s actions.
For more information on evaluating your financial advisor, access the full article here.
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