Why You Should Second Guess Your Financial Adviser

As reported earlier, unscrupulous financial advisers often prey on the elderly and poorly educated. According to a research by the University of Chicago, about 7 percent of advisers have been disciplined for misconduct, such as selling unsuitable investments to clients or making trades without their input. Investors should wisely investigate their adviser’s background. Even when those advisers got fired, nearly half found work with a different firm in less than a year. Advisers disciplined once were also “very likely to act up again,” with nearly 40 percent becoming repeat offenders. Investors can use the U.S. Commodity Futures Trading Commission (CFTC) search tool called SmartCheck to do a background check on their advisers. (washingtonpost.com)