Did you know: Someone out there could well be plotting to take an annual vacation - at your expense? We bring you four confessions of a financial planner, that he won't tell you.
1. I can't beat the market
Many people believe a financial planner can help them supercharge their investment returns. Many financial planners, however, believe they're doing well if their clients' portfolios simply match market averages. Understand that good, comprehensive financial planning doesn't ensure outsized returns. A plan should improve your credit, minimize your taxes, protect your assets, take care of your heirs and grow your wealth over time.
2. I won't save you from yourself
The best financial planners don't let their clients overdose on any 'hot trend'. Your best bet is to find planners who don't have a consistent philosophy or who are constantly talking about the next hot trend. In addition, take some responsibility for your actions. Do not be a trend-chaser or insist on wild swings in course, especially if your trained, experienced planner advises otherwise.
3. I have a checkered past
Sooner or later, some financial planners will have a run-in with an unhappy client. If those disputes regularly escalate to lawsuits, however or your advisor has been pulled up by a regulatory board, that's a red flag. Ask for three references of clients who have been with them for at least five years and make sure they are not related.
4. I made three trips abroad and -- you paid for it!
When certain financial schemes or products create a conflict of interest where your planner stands to gain more in commissions he or she will probably recommend a scheme which will entitle him or her to a foreign trip, a plasma television or a car. Too bad if it hurts your bottom line.
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