Over the past few months, several investor lawsuits have made headlines in the Knoxville area. How can you avoid making bad investments? What are the right questions to ask before writing a check to a financial advisor? Our moneyman Paul Fain, president of Asset Planning Corporation, joins us again with tips to protect your money.
PAUL, IS IT POSSIBLE TO SNIFF OUT A BAD INVESTMENT DEAL?
- “Bad” investments.
- Bad people. Madoff.
- Common sense!
- Caution signs: “Safe and secure”, “Short-term and low-risk, 7-9% returns (!)
HOW DO INVESTORS GET PULLED INTO THESE BAD DEALS?
- Free Steak dinner.
- “Education” seminar.
- Sales Pitches.
HOW SHOULD WE SCREEN AN ADVISOR OR AN INVESTMENT?
Investment:
- Don’t invest in anything you don’t understand.
- Research the company and the people behind the investment.
- Ask what could go wrong?
Financial Advisor:
- Check out a financial advisor on FINRA or SEC:
- https://brokercheck.finra.org/
- https://www.adviserinfo.sec.gov/
- Find a CFP: http://www.plannersearch.org/
- Fiduciary Standard.
- Understand compensation.
- Ask for references.
FAST MARKET FACT: Projecting Realistic Rates of Return
- Cash 2-3%
- Bonds 3-4%
- Stocks 6-8%
The only certainty is uncertainty.
QUESTION FOR OUR MONEYMAN?
Send them to Paul@assetplanningcorp.com!
You can also reach Paul by using the contact page on APC’s website.
