Scared of scams

The following column was published in The News Star on Saturday, January 25, 2014.

Question: I decided I need a financial person so I’ve started talking to a few individuals. Frankly I’ve been less than impressed. I just get the feeling they want to sell me their thing, whatever it happens to be. It is always like this?

Answer: Slimy types will always be drawn to any profession offering access to people’s money.

The good news is they aren’t the only ones out there.

Most doctors are hard working, honorable individuals who want the best for their patients. Unfortunately, there may be a few who are only in it for the money. Some may even prescribe unnecessary treatments or surgical procedures. But the presence of these few hucksters and hustlers doesn’t dissuade me from going my see my family doctor on a regular basis or a specialist if I need one.

The same can be said of attorneys, CPAs, bankers and other professionals. Some may just be in it for themselves with no real regard for their clients’ best interest. Fortunately, there are also plenty of each that are true professionals – they do the best job they can for their clients, sometimes at their own expense.

The point is this: finding trustworthy and talented professional help can be hard work. But the hard work is worth it once you’ve found a pro that’s right for you. Here are some thoughts to get you started in your search:

Talk to friends. Friends are the number one source wealthy individuals use to obtain information about potential professionals. And why not? You’ll get the candid skinny from your friends about their reaction to their advisor and what their experience has been working with him.

Talk to your other professionals. What do your attorney, your CPA and your banker have to say about any financial professional you are considering? Have they had dealings with her? Is she well thought of in the community?

Check their background. Don’t hesitate to ask any professional whom you are considering what regulatory bodies oversee him and if there have ever been any complaints lodged against him. If the answer is, “Nobody oversees me,” you might want to think twice before proceeding.

Generally, commission based brokers are regulated by FINRA (Financial Industry Regulatory Authority), fee based advisors by the SEC (Securities Exchange Commission) and insurance agents by their state’s insurance commissioner. Many advisors wear more than one hat and therefore fall under multiple regulatory schemes. Check the website of each regulatory body for information on complaints filed against anyone you are considering.

Talk to them. Eventually, you’re going to have to talk to the financial person. Since you are considering a long-term relationship of service and advice, don’t you think this ought to be someone whose company you enjoy, whose advice you can trust and whose interests are aligned with yours?

This process may take longer than you like and you may have to interview (not kiss!) a few slimy frogs before you meet Prince Charming.

But the work will be worth it.

Keep looking. You’ll know when you’ve found the right one.

Byron R. Moore, CFP® is Managing Director / Planning Group of Argent Advisors, Inc. Email him at bmoore@argentmoney.com. Write to him at 500 East Reynolds Drive, Ruston, LA 71270 or call him at (318) 251-5858. The opinions of any single advisor do not necessarily reflect the opinions of Argent Advisors, Inc.  No forecasts can be guaranteed.  Argent Advisors, Inc. does not offer tax, insurance or legal advice.  The information contained in this column should not be construed as a substitute for personalized investment, tax, insurance or legal advice.