How To Avoid Financial Advice Negligence
Just about every consumer and business will need a little financial advice from time to time. When you reach this point, you will most likely seek out a financial advisor. In America, these services are a dime a dozen, so how do you know which ones you can trust? Well, if you are not familiar with this service, you will be at a higher risk of receiving negligent financial advice. Fortunately, you can reduce these risks without a lot of effort. And, how do you do this? Just follow the tips listed below.
Decide If You Can Handle Your Own Finances
The step is determining if you have what it takes to appropriately handle your own finances. Of course, you will need working knowledge of asset allocation and investing to ensure your financial future. If you lack these skills, it is likely that you could utilize the services of a financial advisor. Another factor to consider is your discipline level. If you lack the discipline to monitor your financial portfolio, you should never try to take on the task of handling your own finances.
Do Your Research
One of the first things you will need to do is research. You should start this process by researching the financial advisors in your area. What you need to look for is customer reviews, complaints and ratings. When most Americans feel they have been wronged by a service provider, they will immediately file a claim with the Better Business Bureau (BBB). This website is the best place to find former and current consumer complaints. You can also check out review websites and social media sites, as many consumers like to vent online.
Seek Referrals From Those You Trust
It is highly likely that someone you know and trust has utilized a financial advisor to handle their portfolio. Start by soliciting referrals from your family, friends, close acquaintances and co-workers. You should be able to trust these individuals to provide you with referrals of reputable advisors. When you are asking for referrals, be sure to avoid bringing up financial issues, since it can make things uncomfortable for everyone involved.
Know Your Rights
Before you go out and hire a financial advisor, you should first know your rights. As a consumer, you have the right to file a lawsuit or claim against a financial advisor who you believe gave you misleading advice. Remember, legal representation for victims of negligence is available to anyone who has suffered a loss related to misleading advice.
Length Of Tenure
It is a fact that a financial advisor who has been in the field for more than 10 years will have more experience than a newcomer. Now, this does not always mean that a financial advisor with a 10-year tenure is the best answer. No, it really depends on the professional experience, reputation and business practice history. Never base your decision solely on experience, because it can jeopardize your finances.
If you are having financial problems, it may be a good idea to reach out to those who you trust. Start with your parents and best friend. And, never talk to strangers about your financial situation.