Is Your Advisor Looking out for You?
Nowadays, the last thing you need is an unscrupulous financial advisor. With the twists and turns of today’s economy, a retiree needs an advocate, not a con artist.
Phil Cannella offers some red flags to watch out for:
• Avoid stockbrokers who claim to have a “secret method” that yields good returns even in bear markets. Listen with your head, not your wallet.
• Avoid advisors who use overly complex language or ask you to “just trust” them because their investing strategies are “over your head.” The less you understand their plans, the more they control your money.
• Don’t assume that just because an advisor is part of your social circle, he’s honest; many of Madoff’s clients came to him by referral. Click the “broker check” tab on the Financial Industry Regulatory Authority website (www.finra.org). You’ll see if the advisor has complaints against him.
• Do not write checks in the name of your advisor. Always write checks directly to the brokerage house.
• Do not accept financial statements on the advisor’s stationary. Only accept stationary directly from the custodian, bank, or actual brokerage house.
Protecting Your Nest Egg
“These simple steps will help safeguard your nest egg,” says Cannella, who boasts a 37-year track record as a senior advocate. “It’s tragic how many advisors there are out there who see your money as their retirement plan.”
FOR MORE INFORMATION FROM PHIL CANNELLA, TUNE IN TO THE CPR SHOW, EVERY SATURDAY 11AM-1PM. LISTEN LIVE
