How can I check out the reliability of a financial advisor?

Question

I went to an evening seminar given by a financial advisor that specializes in financial advice for retirement. I am not in the business field, so how do I know this fellow is on the level? I don't want to give out important financial information to someone I don't know anything about. His name is Trae Wieniewitz, formerly of Louisiana. He now has a business in Knoxville, TN area called Wieniwitz Financial.

Mr. Wieniewitz is CLU and CLA. The brokerage check site was very helpful also. Thanks.

Answer 1

I would ask some friends or co-workers if they work with a Financial Planner at all. They might be a valuable source in finding a reliable advisor. Also, find out if Mr. Wieniewitz carries any professional designations... like CFP (Certified Financial Planner), ChFC (Chartered Financial Consultant), ChFA (Chartered Financial Analyst), CLU (Chartered Life Underwriter), etc. I am studying for the CFP and I know their website will verify if someone in your area is a CFP or not. Their website may also be a good source of finding a reliable, credible, and accredited financial advisor.

CFP Board of Standards website: www.cfp.net

I look at it this way... I would not go to a Financial Planner without a designation, because I wouldn't have my taxes done by some one who isn't a CPA.

I hope this info helps. Good luck finding a good Financial Advisor.

Answer 2

You will probably find that this gentleman and many others like him are aggressively pushing some form of index annuities. These are annuities, sold by insurance companies, that promise you won't lose any money with them but will be able to enjoy "some" of the upside if the stock market goes up.
If that is what is being offered, RUN, RUN, RUN the other way.
These products are often sold using deceptive practices--usually lies of omission.
You probably won't find out what "some" of the upside really means until you have given them your money and have the policy in hand. They count on people not reading it closely or not being able to decipher the information in the reams of paper used to lay out the policy.
Additionally, despite what you are told, there will be a very heavy loss of principle (your initial investment) if you die or want to pull the annuity within the first 10 years.
You will be far better off to learn about stocks (plenty of great resources online) and handle your own financial future yourself through sites like Scottrade, Ameritrade, Fidelity, etc.
Second best is to find a trusted financial professional that does not push or recommend index annuities.
I repeat, if you get suckered into an index annuity, you will be extremely disappointed in the coming years.
By the way, a FIXED RATE annuity may be ok if you are 70 or older, you read it carefully and make sure your heirs will not get shafted if you die.

Answer 3

http://www.nasd.com/InvestorInformation/InvestorProtection/ChecktheBackgroundofYourInvestmentProfessional/index.htm