In order to protect myself against securities fraud, what sort of questions should I be asking a potential financial advisor?

 

A:

Doing your investment research ahead of time can save you a lot of trouble and money in the long term, and we definitely encourage you to open the lines of communication with any investment professional you plan to work with. We talked in a recent article about "awkward questions" you should probably be asking your financial advisor, which basically boil down to the following categories:

• Questions about risk. Don't be hesitant to ask questions about what happens when things go wrong. There's a risk inherent in any investment opportunity, and it's easy to lose sight of that when you're focusing only on the best-case scenario. 
• Questions about values. Getting to know your financial advisor is often an overlooked step, but you might surprised how much insight you get about the practical things as you get to know your advisor personally. Find out more about your advisor's background, the types of clients he or she works with, and his or her general values when it comes to investing. 
• Questions about method. It is okay - and even encouraged - to ask your investment professional about his or her strategy and plan. Learn more about your advisors' professional methods; if it sounds complicated, or if you don't feel you understand, then you should proceed with caution and be ready to ask for clarification.

If you have any questions about protecting yourself from investment fraud, request your free copy of our book Five Signs of Investment Fraud ... And What to Do if it's Happened to You. If you have already lost money due to financial fraud, speak with an expert investment fraud attorney today at 1-866-8-BROKER (1-866-827-6537) or use the online contact form on this page.