With all the publicity in the newspapers, television, internet, and magazines, we are all familiar with the likes of Bernie Madoff and R. Allen Stanford.
These two "financial advisors" are accused of bilking their clients out of $60 Billion and $10 Billion respectively. How do you protect yourself? How do you find a financial advisor in Cardiff that you can trust?
What should you do to start protecting yourself?
You have several options to protect yourself. These steps are not a guarantee that your financial adviser will be honest. These few steps will help you to be more protected against the Madoff's or Stanford's of this world when choosing your financial adviser in Cardiff.
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Asking for references from the financial advisor is the First step. Ask them: "Who are three of your clients that I could speak to?" We all know that advisors will give you three people they are familiar with and who get along well. This isn't the point. It is the advisor's response to the question that matters. Was the advisor hesitant to say yes or did he/she say no?
You may have a valid reason not to tell you. It may be against brokerage firm policy to disclose "any" client information. This excuse is ridiculous, according to my experience. You have only done what is best for you: Draw out the financial advisors and brokerage firms to fit your needs, not theirs.
It is important to consult at least three financial advisors before you make your decision.