How do I know I can trust the person I invest with?

July 30, 2014

First, ask the advisor if they are licensed and registered in your state. You also want the advisor to give you written information that fully explains the investment you are considering, such as a prospectus. Yes, I know your eyes are glazing over when you see a prospectus, which is another reason you need a Financial Advisor whom you like and can explain things in a way that you understand.

Next, ask yourself if the claims they are making are realistic; if it looks too good to be true, it usually is. Do your homework, a little research on any returns claimed will help prevent investing in a scam. If they are licensed, you can also look up the Financial Advisor's record with FINRA ( FINRA is the regulatory body of financial services firms. Finally, always ask yourself if the investment meets your personal investment goals.

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