Developing A Financial And Retirement Plan And Investing

Developing a financial and retirement plan and investing your assets properly are two of the most important things YOU can do to build a financially secure future. You work hard for your money, and you should take GREAT CARE to only entrust it to an honest, ethical and experienced financial advisor who has YOUR best interest at heart. So, here are 3 of the most important questions YOU should ask a financial advisor BEFORE doing business with them.

#1 What standard are your financial recommendations held to?

When dealing with investment professionals, there are TWO different kinds of accountability rules they may be held to: fiduciary or suitability. Fiduciary rules hold a financial professional liable in the event a considerable amount of a client’s portfolio is LOST under THEIR supervision. They require the professional to act in the client’s best interest at all times. Suitability rules, on the other hand, only hold professionals to a “limited liability” for the outcome and performance of any investment. If your investments suffer a significant loss, the professional may NOT be held accountable under these rules. It is in your BEST interest to do business with a professional who follows “fiduciary” rules!

#2 Can you describe your ideal client?

This question is the best way to see if the financial professional you’ve selected is a good fit for YOU. Their answer might give you a clue as to whether or not they can handle your specific financial needs. For example, if you’re looking to SAFELY grow your nest egg, and your advisor’s ideal client is one who is interested in putting the majority of their money in the stock market, then they are probably NOT the best advisor for you.

#3 Who has custody of my accounts?

Most advisors work with a custodian who maintains custody of your money, giving you an added layer of protection. But, NEVER write a check DIRECTLY to a broker or any financial advisor! Advisors who have “custody” of your accounts can technically act WITHOUT your permission, and even liquidate your account without you knowing about it. With that being said, be sure that YOU maintain complete authority of when YOU decide to buy or sell ANY of your investments or holdings!

Now is the time to realize that neither a “BAD financial advisor or a GOOD con man is responsible for the safe return of YOUR money, or the interest you were expecting to receive. Only YOU are responsible for making sure that you do NOT fall victim to a financial scheme or scam artist, and that you do NOT incur unnecessary risks on your investments. It’s YOUR money – have a say in HOW it’s managed and by whom.