A good financial advisor can help you feel confident about growing your savings and retirement funds. A bad financial advisor, on the other hand, can end up draining your savings and leaving you unsure where to turn for help.
Our team at Meyer Wilson can help you identify the warning signs of a bad financial advisor. You can also work with an investment fraud lawyer from our firm if your financial advisor engages in negligent behavior or misconduct.
We’re ready to review your situation today when you call or fill out our online contact form.
What Are the Red Flags of a Bad Financial Advisor?
Identifying the red flags of a bad financial advisor can help you protect your finances. We recommend that you proceed with caution if your advisor:
Rushes You to Make Decisions
Financial advisors should give you time to make the best decision about your investments. If your advisor repeatedly insists that investments have deadlines and pushes you to quickly commit to a decision, you may consider it a red flag.
This behavior becomes more concerning if the advisor tries to avoid answering questions about your investments or refuses to provide information when you have concerns about their choices.
Avoids Explaining How They’re Paid
Advisors often receive some form of payment for each investment you make. They may charge you a fee or load or work on commission. If your advisor refuses to provide transparent information about how they charge, it can represent a bad sign.
Advisors who charge excessively high fees may not represent your best choice.
Additionally, you may want to take care if your advisor requests a check made out directly to them instead of the organization or agency that employs them.
Pushes You Toward a Single Investment
Diversifying your investments can provide you with greater financial security. Advisors who try to convince you to put the majority of your money into one investment can give you poor advice and disrupt your finances.
This situation may represent a more significant cause for concern if the advisor claims to have exclusive access to the investment they want you to select.
Wants to Meet You Alone
Skilled financial advisors generally meet with you and your spouse or partner. If you hold responsibility for another person’s finances, they may also join the meetings, allowing the advisor to understand your situation and goals.
Advisors who try to isolate you may intend to rip you off.
Fails to Consider Your Needs
Your financial needs represent the most crucial facet of handling your investments. A good financial advisor should ask about your financial situation, including your debt, assets, and other important financial details.
The professionals generally recommend against working with advisors who only have one-size-fits-all plans that fail to consider your unique circumstances.
Fails to Send You Proper Reports
It’s essential that you receive regular information about the status of your investments. Good advisors should send you monthly, quarterly, and annual reports. These reports can contain information about:
- Transactions
- Deposits
- Withdrawals
- Your return on investment
- Any fees and commissions
Generally, monthly statements should come from the brokerage firm handling your money. If you have any concerns about documentation regarding your investments, you can contact us for advice.
Fails to Keep You Informed of Changes
Finally, your financial advisor should keep you up-to-date about any significant changes to your investments. Keeping this information from you represents a substantial sign of concern and could indicate that you have a bad financial advisor.
Generally, we recommend working with advisors who proactively contact you to check in, even when they don’t have major changes to report.
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$350 Million for Our Clients Nationwide.
What Should You Do If You Have a Bad Financial Advisor?
You have several options for your next steps if you have a bad financial advisor. First, you may consider moving the rest of your savings to a different investment firm to protect your finances.
If your financial advisor engaged in acts of misconduct or negligent behavior, you may have additional options. For example, you may file a claim for Financial Industry Regulatory Authority (FINRA) arbitration.
This form of arbitration may allow you to seek compensation for any losses caused by your previous financial advisor. An attorney can help you build a claim and seek damages.
Speak to Us About Warnings Signs of a Bad Financial Advisor
You can review the warning signs of a bad financial advisor with our team at Meyer Wilson. We have 75 years of combined experience handling investment fraud cases, and we’re ready to guide you through the process of seeking damages if you experience the effects of misconduct. We’ve helped clients secure over $350,000,000 in compensation. You can call or fill out our online contact form to learn more.
Recovering Losses Caused by Investment Misconduct.