How to Determine Whether Your Financial Advisor is a Finesse Artist…or Not

There are plenty of financial advisors out there, and while most of them are the real deal, how can one be able to tell whether theirs is legit or not?

As a matter of fact, a study conducted by the Certified Financial Planner Board of Standards in 2012 found that roughly 19% of financial advisors had been found red-handed dabbling in fraud with the sole purpose of duping their clients. If that’s not enough, about 7% of these individuals have been disciplined on a regular basis for a number of years, and 40% of the individuals that received termination ended up getting a job with another firm in just under 12 months!

According to CFP Bill Francavilla, he has extensive knowledge regarding how an individual is able to spot a financial advisor that is crooked, and further provides tips on how they can avert any potential scammers looking to finesse them from their hard-earned money

It is easy to get finessed by a scammer posing as a financial advisor these days

Don’t Just Take Any Referrals

A great number of customers get financial advisors from referrals they were given by friends, colleagues, and family.

However, one should be cautious even if the individual in question was vouched for by friends and family. As a matter of fact, Bernie Madoff was able to pull off one of the largest fraud exercises thanks to referrals from friends.

On the other hand, if you do trust referrals, make sure to do your research first before getting involved and not just take your friend’s word for it.

Additionally, these plans can cause massive dents to your financial structure

Ask Plenty of Questions

A legit financial advisor will want to ask you plenty of questions regarding your financial setup prior to engaging with you. This way, they can be able to make sense of your financial goals and needs.

Additionally, you should also be asking plenty of questions about the financial advisor, so that it doesn’t end up being a one-way street.

Questions that you should ask them is regarding their experience, how long they have been with a given firm, and whether they have been actively involved in financial consultancy, as well as any credentials they may have.

Indeed, what a credential does is that it gives you the impression that the financial advisor is serious about their career and their reputation.

Additionally, it would be wise to also know the kind of approach that the financial advisor plans to take in terms of handling your finances and the investments that he or she plans to introduce you to.

Don’t access the services of a financial advisor who is just starting out without any professional guidance

Avoid Salesmen Financial Advisors and Newbies

While a potential scammer is going to advise that he or she plans to scam you, there can be subtle cues you should look out for and avoid these financial advisors altogether.

So who is the first one on the list? The neophyte. That is, a recently integrated financial advisor that’s just fresh out of training.

Indeed, unless the individual in question has a professional team backing his or her credentials, then it would be wise to avoid them altogether.

Another kind of advisor that one should steer clear from is the salesman.

This type of person has no interest in solving any issues that you may have. Indeed such an individual is only interested in selling a certain product or financial package in his or her arsenal.

That being said, to avoid being duped, it would be wise to leave your checkbook at home!

What To Do In The Event That You Have Been Duped

Unfortunately, there are some situations whereby a given scammer might get the better of you. So what do you do in such a situation?

Contact the authorities-Before anything else, be sure to contact the authorities to report your case. Not only can they assist you in the way forward to handle the situation, but perhaps catch the suspect before they cause harm to anyone else.

Don’t panic-Indeed, you might have lost thousands of dollars in terms of savings, but panicking will only make matters worse. You might find yourself trying to get a loan from a shark, or even moving to something illegal.

The best thing to do is remain calm and seek credible financial advice on how you can get back on your feet.