Putting the Bad Behavior in Check

After reading this article in the New York Times Finding Financial Advice in an Age of Bad Behavior regarding some Financial Advisors from the National Association of Personal Financial Advisors being brought up on charges, here is a summary of tips from the article –

  • Check the legitimacy of planners’ credentials – Credentials such as the certified financial planner (CFP) designation, certified public accountant (CPA), chartered financial analyst (CFA), all of which require passing exams.
  • Know your Customer (KYC) should also apply in reverse to your financial planner.  Some bit of instinct and a lot of spending the time to get to know him or her.  Ask them to sign a fiduciary oath, promising to act in your best interests at all times.
  • Do your own due diligence and research – Don’t just take your advisor’s word for it. There are many free resources to learn and perhaps your next investment comes from an idea you had.
  • Be Aware and Check the details – Read your account statement carefully. If you see something, say something.  Ask for clarification if you can’t understand the jargon, strange numbers or anything else on your statements.

People need to take responsible for their future. If it’s a free lunch there’s probably something fishy about it. Lunch is actually quite expensive these days. Hopefully you’re bringing it from home and saving the cash.


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