DAVE & DUJANOVIC

Do you know how to spot a bad financial advisor?

Nov 16, 2022, 6:00 AM | Updated: 5:42 pm

Being involved with a bad financial advisor is no good for investors. A KSL investigative reporter ...

Sloan Schrage, KSL investigative producer, joined KSL NewsRadio’s Dave and Dujanovic to discuss the red flags to watch out for in order to spot a bad financial advisor. (Adobe Stock)

(Adobe Stock)

SALT LAKE CITY — You put your nest egg and your trust in a financial advisor, but what do you do when that trust is broken?

You could try suing to recoup your lost investment, but you may have signed a contract called an investment advisory agreement when you hired your financial advisor. If so, the contract states you and your advisor must resolve any dispute in arbitration rather than in the courts as reported by The Wall Street Journal.

Sloan Schrage, KSL investigative producer, joins KSL NewsRadio’s Dave and Dujanovic with Dave Noriega and Debbie Dujanovic to discuss the red flags to know in order to spot a bad financial advisor.

Your financial advisor promises investors they can consistently outperform the markets

“I think the average rate returns is like 9.2%. So, if you’re going to promise greater than that, I would be a little bit wary,” Schrage said.

The advisor talks more about themself than you

“They should be talking about what they can do for you, your goals, your risk tolerance . . . They should get more of a picture of you than about them,” he said.

Debbie shared a telltale sign of a bad financial advisor: “They pull up in a fancy car. . . . They love to drive fancy cars. They show you their fancy boats and their fancy homes.”

Not understanding how you’re paying a financial advisor

Some advisors are paid a flat rate or fee only. Others are paid a percentage of an investor’s assets under management. 

Beware of any advisor paid a commission by mutual funds.

“Know what the commission is, how much they are earning off the products they may be selling from a company,” Schrage advised. “If they’re not transparent about how they make money, that would be a red flag.”

“One thing that kind of surprised me is if they’re moving your money around. They could be getting a cut every time they move your money,” Dave said.

Schrage said if a financial advisor is confusing or defensive about how you are paying them, you might want to consider another advisor.

Related:

 

Dave & Dujanovic can be heard on weekdays from 9 a.m. to noon. on KSL NewsRadio. Users can find the show on the KSL NewsRadio website and app, as well as Apple Podcasts and Google Play.  

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Dave & Dujanovic

Jaywalking in Salt Lake City...

Michelle Lee

Should Utah keep ticketing jaywalkers?

Here's what Sgt. Spencer Cannon with the Utah County Sheriff's Office thinks.

1 day ago

Image of a child in costume holding a plastic pumpkin dish filled with Halloween candy. Concern for...

Sam Herrera

It’s candy season, but what does all that added sugar mean for our health?

Sugar is a part of everyone's diet and can provide an important function. But, foods with added sugar usually don't have other nutrients.

4 days ago

FILE - A mail-in official ballot for the 2024 General Election in the United States is shown in Pen...

KSL NewsRadio

LISTEN: Gender and early voting trends

According to an NBC News poll, women are outpacing men in early and mail-in voting by quite a hefty margin.

5 days ago

Amendment C is on Utah's 2024 ballot....

Michelle Lee

Here’s what you need to know about Amendment C

There's been a lot of talk around Amendments A and D, but what is Amendment C? What will it mean for Utahns if it passes?

8 days ago

McDonald's Quarter Pounder hamburger, the kind linked to e coli outbreak...

Sam Herrera

More cases likely in McDonald’s E. coli outbreak, heath officials say

A Utah health official says there are likely more than four cases in the state related to the McDonald's E. coli outbreak.

10 days ago

The consequences for lending your car to someone who then gets into an accident depend on whether y...

Michelle Lee

Lending your car to someone? What if they wreck it?

What are the risks of lending your car to someone who later gets into an accident? Who would have to pay up, the lender or the borrower?

16 days ago

Sponsored Articles

4 construction workers fixing roof against clouds blue sky, install shingles at the top of the hous...

Chipman Roofing

Weather the storms by maintaining your roof

By taking the time to assess your roof's condition and make repairs as needed, you maintain the longevity of your home's stability.

Tax Harassment...

Law Offices of Jordan F. Wilcox

Feeling intimidated by the IRS? 6 Essential facts you should know.

If you are receiving threatening letters and wage garnishments from the IRS, hiring an attorney can help ensure your rights are protected.

Photo courtesy of Nightmare on 13th...

Nightmare on 13th

Here’s why Nightmare on 13th is the best haunted house in Utah

Fall brings Halloween, and Halloween brings Haunted Houses. There’s no better Haunted House than Nightmare on 13th – here’s why!

USA, Utah, Bear Lake. The deep blue of Utah's Bear Lake contrasts with autumn foliage....

Bear Lake Convention & Visitors Bureau

Experience Bear Lake’s all-year activities

We break down Bear Lake's four-season recreational offerings so the whole family can enjoy their time there any time of the year.

Water park with a vintage VW bug in front with a surfboard on top...

Cowabunga Bay

Spend the last days of summer at Cowabunga Bay! 

Cowabunga Bay is one of Utah's premier water parks that features water slides, a lazy river, a kids' cove, and a beach with lounge chairs.

A young woman smiles while reading the menu at a lakeside restaurant, enjoying the panoramic view o...

Bear Lake Convention & Visitors Bureau

The best restaurants to try in Bear Lake

Save this guide to the best restaurants in Bear Lake when you need to find a place to dine during your next visit.

Do you know how to spot a bad financial advisor?