Your hard earned money is nothing to mess around with. So don’t hire the next Bernie Madoff! In this video, Tom and Brendan discuss some red flags to look for when hiring an investment advisor. Don’t wait until it’s too late, learn the warning signs that you should be looking for today.
One thing investors should have learned from the Bernie Madoff scandal is to be skeptical when one person owns and Investment Advisory firm and a brokerage company. This is one of several red flags to look for when hiring an investment advisor.
Tom also advises investors to keep an eye on their returns each year. Bernie Madoff’s returns were the same every year. It’s true that your returns will depend on your investment advisor and the market conditions, however returning the same amount year after year is very sketchy. Especially when those returns are very high.
If you can’t check your account activity and balance online, you should also take that as a warning sign. Clients should always have access to their account through whatever brokerage firm their money is invested through.
Be on the lookout for these and other red flags when hiring an investment advisor. Most importantly, don’t hire the next Bernie Madoff. When you begin working with a new investment advisor, make sure that you feel comfortable with him or her and their firm.