KNOW YOUR FINANCIAL ADVISER

Proceed with caution

Before you trust a financial adviser, check the person’s background.

Not all titles or credentials for retirement or senior financial planning are the same.

Watch out for sales pitches disguised as “educational” seminars.

Is your adviser really an expert in your needs?

Many financial advisers call themselves senior

specialist.” There are dozens of similar-sounding experts to gain your trust, but not all have your

titles that imply expertise in senior needs. best interests at heart or the right kind of training to serve you well.

However, special titles don’t always mean someone is qualified to help you manage your Insurance agents, brokers, financial planners,

money. It’s up to you to find out what the titles and other financial professionals sometimes

mean, and to check on the qualifications of the have titles like “retirement adviser” and “senior

person offering you advice.

Important questions

Does the title or certification your adviser uses require college-level coursework?

Yes

That’s good. Senior experts train in complex topics like estate planning, income tax laws, and investments.

No

It can be harder to know if your adviser was well-trained.

KNOW YOUR FINANCIAL ADVISER 2

Can you file a complaint if you have a problem with your financial adviser?

Yes

Is the credential from an accredited organization?

Yes

Do you know how your financial adviser is paid?

Yes

Is your financial adviser working in your best interest?

Yes

Training and education alone don’t ensure ethical behavior. Organizations that grant senior financial credentials should make it easy for you to check your adviser’s complaint history and file a complaint if necessary.

No

If the organization granting the credential doesn’t take complaints and share adviser history, how do you know if advisers follow the rules?

No

No

No

This is a good sign. This means the organization has taken important steps to ensure the quality of its training program.

Beware. This is a sign that you should take a closer look at the certification.

Some advisers earn commission fees for selling you financial products or investments, while others charge an hourly fee or flat rate.

If you aren’t sure, ask your adviser to explain the fees and put them in writing so you know all your costs.

If you aren’t sure, ask your adviser to put in writing any potential conflicts of interest including any situations in which your adviser will not be acting in your best interest.

Consider working only with advisers who will tell you in writing about any potential conflicts of interests. Make sure that you are comfortable with any conflicts.

KNOW YOUR FINANCIAL ADVISER 3

Have you been invited to an investment seminar?

Any time you see a retirement or senior

Watch out for high-pressure sales tactics

seminar advertised as “educational” or

You may be asked to make a quick investment as a “workshop,” beware. The true goal

decision, or be warned that “opportunities are may be to sell investment, insurance, or

limited.” Don’t fall for these schemes. Good financial products at the seminar or in

financial advisers won’t rush you because it follow-up calls.

takes time to make good investment decisions.

Watch out for exaggerated claims

Watch out for freebies

If you are told about investments that make a

Financial salespeople may use freebies like lunch and dinner invitations, golf trips, and country club outings to get you to come to marketing and sales events. They give you something knowing you’ll be more likely to

lot of money without much risk, don’t believe it. If you think an adviser made exaggerated or unrealistic claims about investment risk or returns, report this to your state securities or insurance regulator.

give them something in return.

Check your adviser’s background

Before hiring a financial adviser, it’s a good idea

status of his or her license, and find information to ask for references and get a background

about professional history using these online report. If a financial adviser is regulated by

resources: state or federal government, you can check the

FINRA Broker Check finra.org/BrokerCheck

SEC Investment Advisor Public Disclosure Database adviserinfo.sec.gov

Your state insurance regulator naic.org

Your state securities regulator nasaa.org

FINRA Professional Designations and Organizations Locator finra.org/designations

For helpful tools and good information on investing investor.gov

KNOW YOUR FINANCIAL ADVISER 4

Resources

Ask CFPB consumerfinance.gov/askcfpb

Tell your story consumerfinance.gov/app/tellyourstory

Download and request publications promotions.usa.gov/cfpbpubs.html

For more information, visit the Office for Older Americans on the Consumer Financial Protection Bureau website at consumerfinance.gov.

Blog consumerfinance.gov/blogcategory/ older-americans

Email [email protected]