As this NY Times article (http://mobile.nytimes.com/2014/10/12/business/mutfund/before-the-advice-check-out-the-adviser.html?referrer=) reminds us, you must take steps to protect your money before heeding the advice of anyone – even a lawyer sometimes – who you hire for investing advice.

1) Are they a fiduciary? How do you know? It should state so in writing. If not, ask why not. If so, they have a duty to act in your best interest. Must tell you how they are paid and help you weigh risks.

2) If not a fiduciary, they are earning a commission and have no duty to weigh the risks. If it is insurance based, they have different requirements than if what they are selling is a pure financial markets investment (stocks, bonds, foreign exchange, mutual fund, options).

3) Do you know how they are paid?

4) Do you know how much risk to your investment exists? Or asked differently, are you comfortable potentially losing some or all?

5) What are annual charges?

6) Are early withdrawals allowed? cost?

7) What is the tax treatment annually and on maturity or withdrawal?

8) What problems commonly exist? what frustrations do similarly situated investors experience?

9) Again, did the advisor ask you these and more questions? Do you feel you’re being sold or are you choosing this as the best option?

Call me to bounce around concerns over your advisor’s advice. I offer new clients 1 hour free.