Q. My wife and I want to invest our tax return? We do not have a financial adviser at this time. What advice may BBB provide in seeking qualified financial advisers?
A. Shopping for an investment adviser, accountant, bank, mortgage broker, or any other financial service can be stressful. There are so many options and, without a background in finance, sorting through skilled, unskilled, and downright dishonest candidates can seem overwhelming. When you hire someone, you entrust them with your finances and your future; that knowledge adds to the weight of the decision. Fortunately, there are a few basic steps you can take to protect yourself and your finances from scammers, and make sure you get the best possible service.
Jim Winsett of the BBB. » Do your research. Before you sign up for any kind of financial service, do your own research. Find out what kind of financial service you need, how it works, what kinds of fees you will be required to pay. Don't be afraid to call reputable companies to ask questions about how their services work. Many are willing to sit down with potential customers to discuss their services, so find out if you can set up an appointment for a free consultation. Locally, visit BBB.org/Chattanooga to review a company's business review report and research complaint histories and customer reviews.
» Get recommendations. Ask friends and family members who they turn to for financial services. This is an excellent way to discover trustworthy lenders, banks, and accountants who have already built a good reputation in your community.
» Explore and compare the options. Once you have a few service providers in mind, spend some time researching each option. Find out how their services measure up to your expectations. Call or visit them and ask questions. Create a comparison list in which you write down the pros and cons of each service provider. This will help you see clearly which service best matches your specific needs.
» Check professional certifications. Most financial service providers are expected to maintain certain professional certifications or insurance. Find out what certifications and insurance are required by law in your jurisdiction or expected by consumers, and make sure the financial service provider you choose has them all.
» Get everything in writing. Once you have chosen a financial service provider, make sure your agreement is down in writing. Review written agreements and contracts carefully before you sign them. If you have any questions, ask. Never assume things will work out simply because a person seems trustworthy. If there are aspects of a contract you don't understand, find out what they mean before you agree to the terms.
» Keep an eye out for red flags. There are several red flags that point towards a scam. For example, you should be wary of anyone who pressures you to sign up for their services quickly, claiming you'll miss out if you don't act now. Also, unsolicited callers who ask for your personal information are usually scams, and so are offers that seem too good to be true. If you shop for services online, look out for any service provider who is unwilling to reveal where their office is located or who doesn't have a working phone number.
Armed with knowledge, you can avoid scammers, protect your finances, and obtain financial services that fit your needs.
Jim Winsett is president of the Better Business Bureau in Chattanooga.