Ep 42: Red Flags with Questionable Advisors
PlanningOn This Episode
Let’s talk about some of the red flags that people can look out for when they’re shopping for a financial advisor. Have you ever met with one of these types?
Takeaways
On today’s Saving With Silverman podcast, Mark Silverman CFP® shares some types of questionable financial advisors and how to avoid them.
The Guy with the Hammer
Watch out for one-trick ponies with one tool – for example, annuity salespeople. Not all annuities are bad. There’s a time and place for them, but not all the time. If somebody’s trying to sell you something, they’re not really advising you. They’re just a salesperson in disguise.
If you’ve talked to an advisor for less than 15 minutes, and he already knows the perfect solution for you, that’s probably a red flag. There’s a good chance that’s the same thing he recommends to everyone.
The Oxygen Hog
If most of your initial conversation with an advisor consists of him talking about his company, his background, his credentials, and his favorite stories, that’s a problem.
In most cases, you should be doing most of the talking and the advisor should be doing most of the listening. An advisor who listens well will help you align your goals. You can’t learn from people if you’re doing all the talking.
The Car Trunk Operator
Everybody has to start somewhere, and for some people in the financial industry, that place to start is driving around to see potential clients in their homes.
If you find yourself dealing with somebody who’s coming to see you, that can probably give you some clues about their level of experience and success in the industry. An experienced, seasoned advisor should work for a solid business and be fairly busy.
If somebody’s trying to sell you something, they’re not really advising you. They’re just a salesperson in disguise.
- Mark Silverman, CFP®
The Layout
Listen to the entire episode to hear more. Click on the timestamps below to skip to a particular segment.
0:51 – Hammer
2:51 – Oxygen hog
3:55 – Car trunk
5:39 – Empty suit
6:41 – Non-answerer
8:48 – Just give us your money
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