Finding the right adviser
Once you have made your investment plan, it is time to choose a helpful adviser.
Choosing the right financial planner, investment adviser or broker-dealer can mean the difference between making smart investments and getting scammed out of your life savings. Making sure you hire a legitimate advisor will save you money and headaches down the road. Here are some helpful questions to finding the right financial professional:
What are your qualifications?
Verify licensing and registration by calling the Indiana Securities Division at 1-800-223-8791 or use the searchable databases online at www.IndianaMoneyWise.com.
How are you compensated?
Fee-based professionals charge an hourly rate or a fee based on the performance of the funds they are managing. In comparison, commission-based professionals earn a commission each time they buy or sell a product for their clients.
Do you have a fiduciary duty?
Fiduciary duty requires that a financial professional offer products in the best interest of the client, meaning they put the needs of the client before the needs of their employer and themselves. It is the highest standard of care in the industry.
Do you understand our needs?
Legitimate financial professionals want to understand your unique needs, goals, and risk tolerance levels before offering advice. They will likely ask you to complete a suitability assessment to better understand your financial goals.
Can I get it in writing?
Every investment opportunity should come with a prospectus or circular outlining the details of the investment. If an investment professional does not want to put it in writing or is hesitant to answer any of your questions, walk away! Those are red flags indicating possible fraud.