investment advisor

When it comes to your money, you need to know whether your investment advisor is working for you or working in their best interest. Of course, there are some “warning” signs to look out for when shopping advisors, and I’m going to share a few of them with you now.

If your investment advisor is promising returns that seem way above the market average, they are probably too good to be true. You should always be wary of advisors making claims of consistent or guaranteed returns on your investments. There are very few investment vehicles (including annuities) that are structured to guarantee that you won’t lose money on them. Most of the time, these types of investments are a little more than expensive insurance plans.

Legitimate investments are structured for the long run, so beware of the investment advisor who gives you the “act now before it’s too late” pitch. If you’re asked to act immediately on a “hot tip” you’ve just received from your investment advisor, and/or asked to hastily sign paperwork without reviewing it, then it is time to walk away.

It’s always prudent to understand just how much you’re getting charged and the way you are getting charged for services from your investment advisor. Of course, your advisor deserves to be paid, but if your advisor won’t give you a clear answer on fees and other associated costs, you need to find an advisor who will. And even though there are different fee structures, there are some questions that can raise some red flags: Do the transactions on your account seem excessive? Is your advisor moving your money through a series of similar investments without much to show for these transactions? Rather than help you, some investment advisors help themselves by engaging in multiple transactions to generate commissions.

If you have questions about the accountability and credibility of investment advisors, we invite you to call Mooney Lyons at 1.847.382.2600 or visit us at mooneylyons.com. We can help ease the complexity and reduce the anxiety in many areas of retirement planning in a sincere and straightforward manner.

Investing e-book

X
X