Financial Advisory - Who can believe it?

Sometimes it is easier to find out that the consultant block to learn how to choose the best consultants. This can be harder than it sounds, because the good and bad advisers look and sound the same.



bad adviser. They may have a great personality and very friendly. Unfortunately, these qualities have nothing to do with efficiency and ethics.

Some of the most dangerous counselors are friendly and have outstanding sales ability. They are very adept at convincing people that the first real advisers give financial interests of their clients.

So who should you avoid getting financial advice?

Everyone, but some inexperience economic cycle. Anyone who tells you to be patient despite the market correction rather have the one for what it is like to be afraid of death. It is in human nature to be afraid of losing. It helps if your adviser can give advice on how to survive the massacre. And “better if he has a plan to help rebuild. Of course, best of all, it would be better not to lose so much in the first place!

A person who has very little experience of life. How can someone advise if you have never experienced unemployment, divorce and death? You need someone to help you prepare for a potential disaster. It is also important to have someone who knows how to run good luck. Knowing how to manage your money in good time is just as important.

The bankers, insurance agents and registered representatives who are in captivity in a financial institution. Do not take the bank a reliable source of advice and financial services. Bank sold investment and insurance products to generate more revenue streams to their clients. They have their private sectors with many low quality representatives who are paid commissions to sell you products that make most of the money bank. You will find that the turnover is very high due to high pressure sales tactics that use does not justify building a relationship according to the customer. In the case of the purchase of investment products through insurance agents who want to sell your car or life insurance? Of course, you can not. It is a completely different set of skills. But the insurance companies show everything they sell, because other products and other means of generating additional revenue stream from their customer base.

A consultant who is not trustworthy. Standard fiduciary steward of money you need to keep your property in trust and manage the assets to your interests, not theirs. Although it is not a guarantee of bad financial advice, consultants do not have a strong fiduciary potential conflicts of interest. There is no universal sign for financial professionals. But one thing is for sure, you want an advisory who puts your interests in front of them.

A consultant who does not follow the model used by the rich. Any financial planning should be based on a model of success, not to push financial products. Otherwise, you end up with a “mix” of different financial products that do not work together to achieve your goal. Be careful planner provides computerized plan and then want to charge you to invest your money. And the hottest scams out there right now. These guys make their money by charging a fee for putting your assets with the fund manager, not the coordination of all resources necessary to work together in harmony.

No one likes to feel like they can be exploited and the financial services' industry on the uninformed public.

However, there are advantages to working with a financial adviser. Good advisory help their clients stay on course, helping clients manage a psychological roller coaster always present when the wild market fluctuations during the economic downturn. There are many great advisers. But you have to pay attention not only to those who are paid commissions to sell products.

Just as you go to the doctor for health reasons, he may want to build a relationship with the “doctor of money.” “Financial ad visors often have knowledge and experience working with all types of financial products and services you may not have the time to devote to learning. A great financial adviser will have many years of management of various types of complex financial and life conditions and can use this experience to help you meet your specific needs and desires.

However, in the end, the conflict of interest to deal with the harassment counselor is great for getting the financial assistance you need to succeed. If the adviser does not make money for their business, not an asset to the business. This means that if you get customers and bring in money management fees and commissions, that will definitely lose their jobs.

This means that the skills “sales” is a reward of financial institutions, not necessarily a keen financial sense. And, the customer is the one who always pays the price.