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Created: February 7, 2020
Modified: November 15, 2022

Financial Advisor Red Flags

What You’ll Learn:
Working with a financial advisor is an important decision and one that you shouldn’t make without careful consideration. Whether you’re about to take that step or already have an existing relationship you want to re-evaluate, there are a few red flags you should always be on the lookout for and we’ll take you through them on this episode.

If you’ve made it to this website and this podcast, you either work with a financial advisor already or you’re thinking through the option and deciding if you want to begin that relationship.

We obviously think you’ll find a lot of value in a working with an advisor to develop a comprehensive retirement plan, but regardless of your status, we want to bring a few red flags to your attention. Use these to help evaluate your existing relationship or to choose a new advisor. Each of these need to be on your checklist.

Along with that discussion, we’ll also talk technology stocks, define a financial acronym you might have seen, and share some first-hand stories of how we’ve helped clients problem-solve difficult financial situations.

Is Technology Still a Great Investment?

Maybe you were smart – or lucky – enough to get in on some of these technology stocks that have made huge gains over the past 5-10 years. Netflix and Apple come to mind immediately. If you added these to your portfolio around 2010, it’s been an incredible ride.

But what about those of you that didn’t? Is it too late to invest in the technology sector? What about all the competition for streaming services? Joel opens the show with his thoughts on these questions and the current technology sector.

1:48 – Netflix stock is up 8500% over the past 10 years and has been amazing for investors. But with the landscape becoming more competitive, how should we approach investing in this industry right now?

4:28 – For most of our clients, it’s not about huge gains. It’s about managing the money you have in your portfolio and keep you protected in a downturn.

Financial Advisor Red Flags

Our main topic today is a critical look at when advisors might not be a great fit for you. Whether it’s their work history or the talking points they use during that first meeting or two, there are red flags out there that can help you make the best decision if you take caution when coming across them. Keep in mind that these aren’t surefire deal-breakers, but each of these items should drive you to do a little more research and ask a few more questions.

5:03 – Along these same lines, let’s talk about red flags to recognize from a financial advisor.  

5:27 – Red flag #1: An advisor with a long resume with a lot of different stops during their career. Why should you pay attention to this?

6:42 – You can research brokers using Broker Check.   

6:57 – Red flag #2: The one size fits all approach. How do you know if that’s happening to you? 

8:39 – There should be more time spent getting to know you during the introductory period.

10:06 – Red flag #3: You don’t hear much from the advisor. Maybe a newsletter or an email every now and then.  

Financial Planning Dictionary

How many times have you opened a financial statement or visited a financial website and had little idea what some of the acronyms meant? Let’s face it, people and businesses in this industry appreciate a good acronym. Unfortunately for the investor, it can create confusion. We’ll do our part to help educate today by explaining what JTWROS means.

13:50 – Financial Dictionary: What does JTWROS mean?

Financial Problem-Solving Story Time

Tying into our discussing earlier on red flags, the one quality you do want to look for is an advisor with the ability to problem-solve. An essential part of being able to do that is by simply listening to your goals and your needs. Listening and solving problems go hand in hand.

14:58 – Time to do some problem-solving with Joel’s help.

15:35 – How have you helped someone who was forced into early retirement?

17:18 – How do you help someone that really hates their job and wants to retire as quickly as possible?

18:20 – How do you help someone with a tax issue?

Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.

Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.

Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.

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