I just read this article by Annie McQuilkin, which provides some very good insights that can help to ease your mind with regard to your financial advisor. It has always made good sense to check up on who you’re placing your trust with, but it’s even more clear now after the Madoff thing.
As pointed out by Ms. McQuilkin, fraud by financial advisors is rare. However, with several high-profile cases recently since the Madoff scandal, and you have every right to be concerned. Included in the article are several steps that you can take to ensure that your guy is on the up and up. One of the best things to do is to use an independent advisor, coupled with a separate brokerage for investments – this way there is a “checks and balances” operation in effect to keep everyone honest. Bernie Madoff handled the entire business within his own company, removing the check and balance from the transaction.
Let me know if you have any questions!
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I can learn from you, you can learn from me - please leave your comments and links!Jim Blankenship, CFP®, EA, is an expert in personal retirement, IRAs, and tax issues, with more than 25 years of experience in the industry. Read more from this author
And if you've come here to learn about queuing waterfowl, I apologize for the confusion. You may want to discuss your question with Lester, my loyal watchduck and self-proclaimed "advisor's advisor".