How to Spot a Bad Financial Advisor?
Financial advisors have the reputation of adding value to your financial well-being and can further enhance and stabilize your finances. Aside from being a qualified one, here is a list of things that can help you spot a bad financial advisor and realize that they are not really the one for you.
- Bad Financial Advisors fails to give importance to both spouses.
There are advisors that forget to take into consideration either one of the couples. This type of behavior where an advisor ignores a spouse is, indeed, a red flag. If this scenario happens to you, do not hesitate to switch advisors immediately.
The purpose of having an advisor is to balance your plans in the family, especially if both spouses find it hard to reach a consensus. The advisor must be a mediator and not an additional nuisance.
- Bad Financial Advisors make you feel stupid.
It is a given fact that not all clients are financially well-off. Some are just beginners and they are just starting to take charge with their financial situations. Having a financial advisor who educates you and fully explains why a particular course of action is better than the other. However, it should not give your advisor a sense of too much pride and dominance over you. Never let your advisor talk down to you or in one way or another, make you feel stupid about yourself and your decisions.
- Bad Financial Advisors put their interests first instead of yours.
There are financial advisors who may offer financial products that are not really applicable to a client. Such advisors are recommending a certain product because of the commission or compensation that they will be getting afterwards – it does not guarantee that such would be the best product for a certain client.
You have to ensure that your advisor is setting aside conflict of interest, to be able to get the best advice for your finances.
- Bad Financial Advisors do not make themselves available for you 24/7.
Skilled financial advisors usually have a lot of clients and are probably busy, however, they still must find time to give a reply or call their clients. If a client has questions, they must be able to provide you with answers promptly.
Good financial advisors must regard all clients’ requests as reasonable, and hence, they deserve prompt assistance.
- Bad Financial Advisors only tell things that the client would want to hear.
An ideal and healthy client- advisor relationship is built on honest and open communication. In such situation, clients are being honest on what they want to do on their finances and investments, and if the advisor sees that it is not a good move, he or she will tell the client and be straightforward about it.
A good financial advisor would not just speak about what he or she the client would be happy to hear.
The above-mentioned characteristics are the worst characteristics that an advisor can exhibit when dealing with a client. If any of these is being shown by your advisor, it might be time to think twice and start looking for a new one.
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