| "Your biggest financial risk isn't investing | | | | In the absence of solid credentials, how do |
| in the stock market. It's bad advice when you | | | | weak advisors compete? |
| invest in the stock market. Low quality | | | | |
| advisors, with very few credentials, are the | | | | Advisors with bad credentials use a |
| primary providers of bad advice. They are | | | | time-tested strategy that works. They compete |
| paid to sell investment and insurance | | | | with their personalities and sales skills. |
| products. They are not paid to help you | | | | That's why so many investors refer to their |
| achieve your financial goals". | | | | advisors as being nice people. They can't |
| | | | believe nice people will take advantage of |
| Why should advisors be required to document | | | | them. They are also convinced their advisors |
| their credentials? | | | | are financial experts because the advisors |
| | | | said so - a key component of every sales |
| Documentation for credentials, ethics, and | | | | pitch. Unfortunately, personalities and sales |
| business practices is the only way advisors | | | | skills have nothing to do with advisor |
| can prove they are the experts they say they | | | | competency and integrity. |
| are. Plus, documentation reduces your risk of | | | | |
| selecting the wrong advisor. | | | | Your biggest financial risk |
| | | | |
| Why do Some Advisors Hide their credentials? | | | | It stands to reason bad advisors give bad |
| | | | advice. It could be deliberate so they can |
| Advisors hide weak credentials for one basic | | | | make more money. Or, it could be inadvertent |
| reason - exposure will cause them to lose | | | | because they don't have the knowledge to give |
| sales. Their strategy is not to provide the | | | | good advice. Regardless of the reason, bad |
| information and hope you don't know enough to | | | | advice, in particular in down markets, can |
| ask key questions about their credentials, | | | | damage or destroy financial futures. |
| ethics, and business practices. | | | | |
| | | | High quality professionals document |
| What hidden credentials? | | | | credentials |
| | | | |
| Financial advisors have a least 40 | | | | High quality professionals are proud of their |
| characteristics that describe their | | | | credentials because they have spent years and |
| competency, ethics and business practices. | | | | thousands of hours acquiring them. They are |
| Some of the more important ones are: | | | | willing to document their credentials to |
| education, certifications, experience, | | | | reduce your risk of selecting the wrong |
| compliance records, conflicts of interest, | | | | advisor. |
| RIA and fiduciary statuses, methods of | | | | |
| compensation, and wealth management services. | | | | Where can I go to learn how to bad advice and |
| | | | how to select competent, ethical advisors? |