5 Signs That Your Investment Strategist Isn’t on the Up and Up

Is your investment strategist really being honest with you? It is possible he’s not really telling you the truth or perhaps even giving you a pat on the back saying everything’s “just fine” even though everyone else’s numbers are dropping? Before you put too much trust in the wrong guy, consider these signs of foul play.
Where Is the Strategist Located?

5 Signs That Your Investment Strategist Isn't on the Up and Up

A good place to start is with the address. A trustworthy company has no problem providing a fully stated, easy-to-find address. You’ll find the Fisher Investments Address in just a moment of looking. If, on the other hand, there’s only a PO Box number listed, that’s a sign something may not be too honest. There’s no way to tell, then, what city the office is in or who is really answering the mail.

What Is the Deal with Commission?

One of the biggest worries you should have is with commission. If Mr. Strategist earns commission every time he sells XYZ Funds, it’s likely he is going to push that product on his clients more often than other funds, even if another fund is better for the client. Ask the strategist where he or she is earning a commission and specifically state you do not want to invest in those funds. You don’t want the line blurry here.

The Risks Are Always Worth It?

Another reason to run and hide happens when you hear this phrase. “You have to take risks or you will not make any money. The risk is always worth it.” Any variation of such phrase should translate into, “it’s time to go.” The problem is everyone’s risk tolerance level is different. A good financial planner or advisor understands that no client should invest in risk that he or she isn’t comfortable with taking. More so, risk isn’t right for all investors, especially those nearly retirement. If your advisor isn’t letting you reduce risk, find a new one.

Guarantees Aren’t Worth as Much as Results

That’s all it takes. That one little sentence is enough to send you packing. There are no guarantees in this market and no way for your strategist to promise you anything. Chances are good you’ve signed a document stating as much, too. If your strategist implies it is a guaranteed win, you may want to wonder why that is. Is he or she benefiting in some way from this transaction? It never hurts to be too careful, especially when it comes to your finances!

Do You Know the Secret?

Secrets, secret strategies, strange, unknowns, and industry knowledge are not real things. The fact is, many people fell for Ponzi schemes for years and many believed that such plans were going to make them rich. You do not want to be the next one dealing with that type of loss. Always ask yourself a few failsafe questions whenever you smell something fishy:

  • Who referred me?
  • What are my specialist’s credentials?
  •  Do those credentials check out?
  •  Is what he or she is promising sound too good to be true?
Most investment strategists are great people willing to do the hard work to find you the balance you need. Don’t overlook those professionals with the power to really help you to achieve your goals. The good guys far outnumber the bad guys when it comes to investment professionals. Still, it can only serve you to be extra cautious when it comes to how you invest your money. There are many financial predators and con men out there. Don’t be another victim!

Denny Jones

Hello, I'm Denny Jones, the voice and mind behind this personal finance blog. With a passion for helping others achieve financial independence, I started this blog to share my insights, experiences, and strategies in managing money. Whether you're just starting out on your financial journey or looking for advanced tips to optimize your wealth, my goal is to provide practical and actionable advice that anyone can follow.

One thought on “5 Signs That Your Investment Strategist Isn’t on the Up and Up

  1. I agree with everything you said here. I choose to use a Registered Investment Advisor instead of someone who works on commissions. A R.I.A. is a fee based strategist that earns a percentage of the money that I invest with him. So, the more money I earn on my investments, the more money he earns from his fee. It also works vice-versa.

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