Many people will come to you or your loved ones with a myriad of financial advice and a plethora of financial products, all of them promising you of the great returns you will get and how they are all in your best interest.
A lot of these are frauds who only want to get their sticky hands on your money, while others sell financial products they own and do not even understand! These products are not providing them with the results they were led to believe would be forthcoming.
So, to keep your hard-earned money or your family’s savings from falling into the wrong hands and to your own detriment, always put whatever advice you get through these rigorous process of fact finding. Consider the 7:
1. Show Me the Money
Always ask the person giving the advice what they stand to gain, especially those who come to you to sell this financial product or try that financial advice.
2. Do You Eat Your Own Cooking?
Ask the person giving the advice to give proof that they are heeding their own advice. After all, if it is so great, they should be doing it!
3. Hiding Anything?
Before you commit your money to anything, ask for more information including the websites of the organisation making all those big promises. Visit their sites, become conversant with their track record, and find out what others are saying about them.
4. The Pen is Mightier
It is not enough that the adviser is a friend or a family member, demand that everything – recommendations and proposals – be in writing, as well as copies of all the product documentation and payment receipts before purchasing any financial product. Also, review the information carefully, don’t let them rush you into committing!
5. Don’t Be Blindsided
Make sure you understand every aspect of what you are purchasing – the what, why, when, where and how.
6. Legal is the Way To Go
Always ensure to work with a trusted professional who is registered with the regulatory body of his field or one who is bound by law to fair, standard practices because in both cases, you have a legal leg to stand on if things do not work out as promised.
Always ask to be supplied with information about their education and work experience as well as a copy of the ethics and guidelines of the agency they are representing.
7. Would You Keep a Bone in the Custody of a Dog?
Never let the one giving you the financial advice or selling you the financial product hold your investments for you. Use an independent custodian if you cannot do it yourself.
Follow this and you won’t be amiss.