Valerie RumboughHave you ever wanted to seek help from a financial advisor but didn’t know where to turn? Have you or a friend been a victim of “bad advice” from someone claiming to be a financial expert?
Experiences like these can cause someone to be wary of seeking financial advice, not knowing who they can trust. So how do you resolve financial issues with confidence?
The Certified Financial Planner Board of Standards has published a “Guide to Financial Self-Defense” that consumers can use to help them spot “red flags” when talking to a financial advisor. You can find this guide at www.CFP.net/financialselfdefense.
In it you will find help for discerning what constitutes good and bad advice.
For example, one of the tips in this publication pertains to a product that your advisor may recommend to you, as follows: “When your advisor recommends a fund, insurance contract, or retirement strategy, listen carefully for a fair, complete discussion of the pros and cons. Write them down. If you’re hearing only pros, you’re not getting the full story.” No one wants to be a victim in this area.
You worked hard for your money; make sure your money also works hard for you. God expects us to be good stewards of the money He entrusts to us. This doesn’t just mean what we give away. It also includes what we keep to live on.
– Rumbough, CPA, CFP, is chief operations officer with the Baptist Foundation of South Carolina. Contact her at 800-723-7242. In accordance with IRS Circular 230, any U.S. federal tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.