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Could your financial advisor sheep
really be a wolf? Read on to find out. I’ll also share practical
steps you can take to keep from getting fleeced.
First, beware of the person that comes into your religious
fellowship with a hot new investment that promises great returns
with little risk. For instance, numerous African Americans were
recently fleeced of their life’s savings by a wolf in sheep’s
clothing promising IRS slavery reparations refunds. Of course,
people had to pay a fee to have the proper paperwork submitted.
There have been other kinds of scams, but one thing is always the
same: the con artist used the local church for credibility.
Secondly, don’t make the mistake of basing your trust of a financial
advisor on the fact that the advisor shares your religious beliefs.
Doing so will only set you up to be disappointed.
Just because an advisor is religious doesn’t mean they have insight
from a higher power that will miraculously transform your humble
nest egg into riches. Just because they spend time in prayer or
meditation doesn’t mean they have a sixth sense when it comes to
investing. Just because they possess a great deal of knowledge about
scripture and are active at church doesn’t mean they’re an expert in
investment, financial, estate or retirement planning.
The most important issue when choosing a financial advisor is
competence and experience in dealing with the financial issues you
face. If the advisor also happens to share your faith, that’s a nice
bonus. But don’t make the mistake of confusing religious beliefs
with financial experience, extensive training and ability.
Third, recognize that just because an advisor shares your faith or
attends your church doesn’t mean that he/she will have your best
interests at heart. In other words, don’t ‘let your guard down’ just
because the advisor is a Believer.
Lastly, beware of the religious advisor who spends more time trying
to analyze your personal problems instead of your financial dreams.
Their job is to help you reach your financial goals. Don’t allow
your personal relationship to confuse the business purpose. Manage
the relationship just as you would any other business relationship.
Don’t accept poor investment performance because your advisor shares
your religious faith. Keep your objectivity by clearly drawing a
distinction between your personal relationship and your business
relationship.
Please don’t think I have anything against being a person of faith.
It’s quite the opposite. My wife and I have served overseas as
missionaries. We’ve written and produced children’s Bible story
cassettes and created the fastest launching children’s program in
Christian radio history. My faith has made me who and what I am
today. But my clients, the people who come to my popular financial
seminars and you who read these articles do so because of my
financial expertise, not my spiritual expertise.
Take these simple steps to help make sure the advisor who shares
your faith should also manage your money:
Find out how the advisor gets paid. If the advisor gets paid by
commission there will be some inherent conflicts of interest in the
relationship. Look for an advisor who is fee-based.
Find out the advisor’s level and area of expertise. How long has
he/she been an advisor? What advanced training does he/she have that
is pertinent to your needs? What is his/her specialty? Working with
an advisor who is a Certified Financial Planner guarantees a level
of competence that few stockbrokers or insurance agents possess but
even that should just be a starting point.
Ask for references of other clients who share your financial goals.
Call the references and ask specific questions that will allow you
to objectively measure the advisor’s performance. How did your
investments perform relative to the market? How frequently are you
contacted? Does the advisor take action when investments don’t
perform as expected?
Always remember that it’s your money and it’s your responsibility to
be a good steward of it. First and foremost, find a trained,
competent professional to help you with your finances. If they also
happen to share your religious beliefs that’s great!
Mr. Voudrie is a Certified Financial Planner and President of Legacy
Planning Group, Inc., a Private Wealth Management Firm in Johnson
City, TN. Get ‘How To Avoid The 3 Most Costly Mistakes Retirees
Make’, a Guarding Your Wealth Special Report FREE at
www.guardingyourwealth.com or by calling toll free 1-877-827-1463.
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