Imagine this scenario: You employ someone to help manage your finances, hoping for the best and a clear understanding, only to find yourself tangled in a maze of confusion and frustration. What can happen when financial advisors open Pandora’s Box instead of our own future? The complaints against financial advisors aren’t as common as hen’s teeth, unfortunately they can be anything from simple miscommunications to complete deceit. Read full report here
Meet Jane. Jane is a dedicated worker who recently retired. Jane thought hiring advisors was a logical choice. Who wouldn’t want expert advice in balancing the needs of savings, investments and retirement plans? Her peace of mind was soon shattered, like a vase falling into the floor of a stone. Monthly statements were filled with costs she didn’t anticipate. Investments weren’t yielding the results she had hoped for and communication was the wall like a roadblock along one-way streets.
Jane isn’t the only one suffering from her predicament. Her story is not unique. What did go wrong? It seems that miscommunication can be a common occurrence in the world of financial grievances. Advisors often make their suggestions sound like terms that leave clients confused. It’s like trying to interpret Shakespeare without the footnotes. Take note, advisors: Clarity isn’t only a nicety, it’s crucial.
However, the water gets deeper. Sometimes, trust gets completely broken. Financial advisors’ work is to help their clients fill in knowledge gaps and enhance their lives. However, when advisors prioritize commissions above clients’ needs, the collaboration can go sour. This is similar to putting a fox to guard the henhouse, and the clients are having to pay for their losses.
Do thorough research on the person you’re going to trust with your money prior to making your decision. Imagine the process as dating but with a lot more risk. Read reviews, check the certifications and ask lots of questions. You’re not going into this relationship casually do you? Be sure that the’money magician’ is someone with the proper qualifications before granting them your golden goose.
A dialogue with your advisor is the very first step to take in the event of a bumpy ride. Speak to your advisor. Perhaps uncomfortable truths could help guide the conversation in the right direction. If you feel like you are talking to a wall then you must escalate the conversation. Contact the firm or file an official complaint. In the event of a crisis you might want to contact regulatory authorities. Fighting for your rights can be a difficult battle but it’s worth the effort.
Consider seeking a second opinion. Financial advice is just as crucial to get another opinion on. A second opinion from a professional could provide the clarity you crave or confirm your suspicions. Either way, you’re getting clarity.
Isn’t a “truth serum” be an excellent way to ensure honesty by financial advisors? It’s not always our responsibility to cut through the layers. As the old saying goes, trust but verify. Prioritize thorough research prior to diving into financial waters.
Maybe you’ve had an experience like Jane’s or know someone who has. Let us know about your experiences, and join the conversation, and shed insight into this issue. In the end chains are only as robust as the weakest link and financial security should not be the weakest link in a chain.
When we move forward in the our quest for financial security, let’s not forget that being armed with information and a constant dialog with advisors can avoid many traps. Communication, research, and vigilance should ensure that we stay on the straight and narrow path, unless, obviously, someone creates that ‘truth serum.’
If you’ve had the unfortunate experience of working with a less than stellar advisor or even one who is a gem you should share your experience! Let us know about them, and navigate this world of finance together, eyes open.