Managing money is an art, which not many possess. If the owner does not have time or knowledge to manage his money, it’s good to look for a financial expert. A professional financial advisor has money management skills. That’s why many people prefer hiring a Certified Financial Planner (CFP) to handle their personal finance. But before you handover your assets or wealth to a financial advisor, you should know certain points.
The below warning signs emphasizes on the risk that an amateur financial advisor could impose on you.
1. Phony identity
With the wide knowledge about the internet these days, it has become extremely simple to create a professional looking website and expert profile online. Being a vigilant customer, you should be able to differentiate between real and fake profiles. It is easy to make out by knowing different credentials and your requirement.
While researching for a financial advisor in India it is important to look for a CFP certified consultant. Also, ask certain questions like his experience in handling cases like yours, proof/sample of his previous work and don’t not hesitate to ask for few referrals.
2. Not giving enough time
A big red signal is if the financial advisor is not disclosing much information about him and not giving enough time. Remember one thing, when you handover your assets to a financial consultant, it is his duty to be focused towards your work and give timely updates on its status.
If a financial advisor is not giving you the status update occasionally, or not even promising a face-to-face meeting, something is fishy. Move on and find another one!
3. Pressurizing too much
A good financial advisor is the one who doesn’t pressurize and should have the patience to listen to your thoughts and ideas.
If you are feeling pressurized or not getting clear cut answers to your question, without any fear say a straight ‘no,’ and look for another better financial advisor. If you will listen to him once, you’ll be pressurized always for his selfish interest.
4. Pitching like a salesperson
When a normal conversation with your financial advisor turns into a marketing talk, run away! If your financial advisor is pitching or persuading you for a risky investment, move on.
A professional financial consultant will never sell schemes; instead will be focused on your goals and risk tolerance level. You should never feel forced. This is a case where you need to speak, since if you won’t speak this time you could face heavy losses in the years to come.
5. Playing Hide and Seek
Many-a-times it happens that financial advisors force individuals to buy a risky investment product for higher commissions. Any financial advisor that forces you to purchase a risky investment or hide the charges associated with it should be avoided at all costs.
If anytime you feel he is hiding something, talk to him. If you are still not convinced, you need to seriously think over it. Such behaviour clearly shows that the financial advisor is a crook.
6. Hapless Communication
Communication is vital for a successful investment. If your financial advisor is not exchanging even a word on your investment, you might want to find someone else.
Understanding finance is not difficult if your financial advisor is knowledgeable. But if even the financial advisor is struggling to understand a simple point, how can you expect a successful mantra from him. Skip the trouble and find a better financial advisor who knows FINANCE!
7. Promising Day at Night
This is the most common warning sign you should not trust your financial advisor. In the current time, without taking much risk you can only get a return of 8% to 10%.
If your financial advisor is promising you more than this from an investment and claims there is no risk, then beware! Something is fishy. If you will run behind such false claims, you may lose your money. Stop following such fake statements, instead go and find a proficient financial advisor.
These warning signs might save your money and you from a big loss. If even one of the above signs comes up, move on and find an expert financial advisor immediately. Be wise and invest wisely!