You can get help from a financial adviser if you cannot make your financial decisions on your own. However, even if you hire a financial adviser to make the important financial decisions on your behalf, you should be aware of being scammed. First of all, make sure you do background and reference checks before hiring a person. Here are some things which you should follow even after you hire a good financial adviser.
- Get statements from all sources - Never ever make the mistake of relying only on the statements that your financial adviser sends you. You have every right to get statements from independent financial resources. So, even if you have the habit of submitting documents through your adviser, never leave a blank space and always ask for the submitted copies of each and every financial transaction. Look for the âSubmittedâ or âFinalâ stamps on your personal documents. Always go through the statements carefully and never hesitate to call the financial institution if you don't understand any particular thing.
- Analyze the pros and cons of each investment strategy - Knowing only about the benefits of making an investment is just like knowing only the half of the story. It is the duty of your financial/investment adviser to make you aware regarding the pros and cons of every investment strategy; that is, you know about the return of investment as well as be aware regarding the risks involved. It is always better to diversify your investments by investing in both risky and not-so risky investments.
- Do not make financial decisions in a hurry - It is not advisable to make investment decisions in a hurry or when you are emotionally down - like after a divorce or any of your near ones is sick or has passed away. In such situations, ask a trusted family member of yours to review the paperwork and help you in making a decision.
- Designate a financial power of attorney - Select a trustworthy person to be your financial power of attorney, who can make decisions on your behalf when you cannot do so. The person should be able to handle your investments during the time you are sick or are disabled to do it yourself. You should also consult an attorney while executing the power of attorney document.
Most importantly, do not make the payment in the name of the financial adviser. Always make the payment to the adviser's business. By doing so, you can prevent the adviser from getting unlimited access to your money.