7 Financial Advisor Red Flags

     Many people rely on financial advisers to manage some of their financial affairs. Give more of this responsibility can be frightening, it is important that competent counsel and work in your best interest.

     Although it is difficult to know these things with absolute certainty, there are some obvious red flags that investors should watch. If the search of his adviser in any one of these flags for you, it may be time to move on - or at least begin to ask questions and dig deeper.

1.First Lack of Credentials

     Everyone wants to know that the consultant is an experienced and qualified. A clear sign that this may not be the case is the lack of professional credentials, such as CFP, CFA, CPA or CHFC. It's worth your time to learn more about these designations and what the director has done to deserve it. This will give you an idea of what services can offer.

     If you just want to tax, public accountant (CPA) may be the way to go. If you want investment advice, then the Chartered Financial Analyst (CFA) is probably better than a CPA. If you want the entire financial plan, then the CFA, Certified Financial Planner (CFP) or Accountant Financial Consultant (CHFC), might be the best - or a person with a certain combination of certifications. The most important thing is that a consultant hired certified or is certified by a professional body, and then reached the standards of the institution. If the consultant is not certified or is certified only for the region related to a particular service is offered to you, you absolutely must find out why. (If you want more information, read the kaleidoscope of certification of financial statements.)

2. Lack of time

     If your financial advisor cannot find the time to have at least one plenary meeting per year, then you have a problem. In the world of financial advice, is really all about you and what your goals and needs. Everything can change in a year, so that your advisor should be updated to be effective. If your advisor can not seem to find time to discuss your particular situation, what other corners that he or she could be reduced? (More buying a financial advisor.)

3. Poor communication skills

     If your adviser has a hard time explaining financial concepts and strategies for you, it may be because he did not really understand. There are very few economic concepts that cannot be explained briefly to someone with an average range of personal finance. Just because you do not understand, does not mean plans are not either. But if your consultant is having difficulty communicating, it is a problem and you could find someone who knows how to make yourself understood. (See tips for finding the best policy.)

4. Great promise

     Each one promises more than 8% return for sure is to either underestimate or overestimate the risk to their own powers. An advisor may include yield potential, as long as they do not guarantee anything. While it's nice for professionals to have confidence in their abilities, it is better if they are honest about the opportunities and risks to be aware of to produce high yields. Many low-risks, high reward strategies prove to be a higher risk originally submitted or lower returns. You can also try to search for a potential fraud.

5. Lack of transparency

     A financial advisor that grows only products that pay a commission may be more of a seller to a financial advisor. Commissions are not bad as long as all costs are clear and in the open air, if you ask them to be. Most people want a counselor who can give them exposure to some of the best products that meet their needs. This may include non-revenue, products, lower management. Ethically, counselors have to do what is best for the customer first. If your adviser is always pushing a particular set of products for each situation, and someone else that you enjoy the most, it is useful to ask her who she really is working for. (Learn the clues needed to determine whether you have chosen a reputable professional in your broker to act in your best interest?)

6.Salesmanship 6th Too Much

     If your advisor tries to sell some shadowy group swaps derivatives have trouble understanding, is really something you should invest? Again, the financial conditions that a director does is supposed to be tailored to your goals and your comfort level. If the director wants to enter a new level of comfort should be able to present convincing arguments that you can understand. In addition, any strategy must achieve their goals and compare favorably with alternative strategies to the extent that risk and reward is concerned. Some people are comfortable not knowing anything and just rely on your calendar with your money. If not, then talk.

7. Disorganization

     For some people, an organization a matter of personal taste. It can be very good at your job without being very organized. However, most people feel a little nervous if their surgeon kept mixing instruments and had difficulty remembering where he put the local anesthetic. Financial advisors should also be professional and if they are very good, but not very organized, they will hire someone to be organized for them. If your financial advisor is not organized and cannot afford to hire someone who is, you have a potential problem.