Is Your Financial Planner Scamming You?

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Is Your Financial Planner Scamming YouThe financial planning industry continues to thrive despite the number of scam artists it involves. The largest scam regarding financial planners is the claim to be a master of all trades. He can not only assist you with financial decisions regarding cash and investments, but he can also advise you on tax considerations, insurance matters and legal issues. The biggest indicator of a scam artist is someone who claims to know it all; he doesn’t want you to hire another professional because then you might see through his charade.

Is your financial planner scamming you?

Does Your Financial Planner Answer All Questions?
The primary job of a financial planner is to answer your questions as completely as possible, and to direct your attention elsewhere if he or she cannot answer a question with any confidence. Financial planners are not supposed to be well-educated in every area of finance; rather, they are intended to give advice solely on the matters of investments, savings and financial strategy. If he or she claims to have all the answers about taxes, insurance and legalities as well as the purely financial aspects of your life, it should shoot up a red flag. You’ll want to get those answers from an accountant, an insurance agent and an attorney respectively to make sure you have all the information.

Does Your Financial Planner Offer Unsolicited Advice?
You can sometimes tell that your financial planner is scamming you by the way he poses certain questions and tidbits of advice. The ideal relationship between you and a financial adviser is one which is based on your questions and his or her answers. Obviously, there will be times when he or she notices something that you haven’t caught and may bring it to your attention, but you shouldn’t be getting all kinds of unsolicited advice from your financial planner. For one thing, what you do with your finances is ultimately up to you. Secondly, there is such as a thing as “overstepping one’s boundaries”.

Does Your Financial Planner Push Certain Investments?
Another indication that your financial planner is scamming you is the tendency to try and convince you of certain investments. A legitimate financial adviser will only present you with investment ideas that fall within your pre-determined risk tolerance. For example, if you aren’t comfortable with the shaky uncertainty of real estate investments, you shouldn’t be hearing about all of the hottest properties in your city. This indicates that the financial planner is getting something on the back end of the deal, which could compromise your financial situation just to line his or her pockets.

Does Your Financial Planner Work at Your Bank?
It is becoming increasingly common for those individuals previously known as “Personal Bankers” to call themselves “Financial Planners”, which can indicate they are scamming you. A banker isn’t someone with the training necessary to advise you on financial issues beyond those which deal specifically with your bank. Even if he or she was a financial planner (and received the proper training) before being hired by the bank, that individual works for the financial institution where you keep your accounts and is working on behalf of the bank rather than you.

Does Your Financial Planner Give Bad Advice?
When you come away from a financial investment with less money than you had before, it’s time to determine whether or not your financial planner is scamming you. If it happens more than once, it’s time to find a new financial adviser. When investment opportunities go awry — particularly if they were outside your risk tolerance — then you know you’ve received bad advice.

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