Sunday, February 05, 2012

More on Wealth Protection...

Good Day again:

At last; continuing the list of safeguards to employ when selecting an Investment Advisor we add the following:

6. Be certain that the money manager has a separate "custodian" watching over the cash and securities that the manager is managing. Never allow the manager to custody any assets. The custodian should furnish interim financial statements as well. That's a great cross-check to prohibit fraud.

7.Avoid retail sales commissions charged by stock brokers who may call themselves 
"Investment Advisors". True advisors have a fiduciary responsibility to serve your needs above all,-stock brokers only have a "suitablilty" requirement. Also, their commissions present an obvious conflict of interest.

8.Demand an "Investment Policy Statement" that outlines all details of your relationship as well as the "Statement of Additional Information" for any mutual fund recommendation. You must go beyond the "Prospectus" which, incidently, you must read.

9. Make sure that you understand all the details of your Management Agreement and Advisor Forms ADV Part II before engaging the Advisor. That's it. Hope these safeguards might help you.

Yours for better investing,




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