Beware the Wolf in Sheep's Clothing, a "Guarding Your Wealth" exclusive.

Beware the Wolf in Sheep's Clothing

Could your financial advisor really be a wolf? Read on to find out. I'll also share practical steps you can take to keep from getting fleeced.

First, beware of the person that comes into your religious fellowship with a hot new investment that promises great returns with little risk. For instance, numerous African Americans were recently fleeced of their life's savings by a wolf in sheep's clothing promising IRS slavery reparations refunds. Of course, people had to pay a fee to have the proper paperwork submitted. There have been other kinds of scams, but one thing is always the same: the con artist used the local church for credibility.

Secondly, don't make the mistake of basing your trust of a financial advisor on the fact that the advisor shares your religious beliefs. Doing so will only set you up to be disappointed.

Just because an advisor is religious doesn't mean they have insight from a higher power that will miraculously transform your humble nest egg into riches. Just because they spend time in prayer or meditation doesn't mean they have a sixth sense when it comes to investing. Just because they possess a great deal of knowledge about scripture and are active at church doesn't mean they're an expert in investment, financial, estate or retirement planning.

The most important issue when choosing a financial advisor is competence and experience in dealing with the financial issues you face. If the advisor also happens to share your faith, that's a nice bonus. But don't make the mistake of confusing religious beliefs with financial experience, extensive training and ability.

Third, recognize that just because an advisor shares your faith or attends your church doesn't mean that he/she will have your best interests at heart. In other words, don't ‘let your guard down' just because the advisor is a Believer.

Lastly, beware of the religious advisor who spends more time trying to analyze your personal problems instead of your financial dreams. Their job is to help you reach your financial goals. Don't allow your personal relationship to confuse the business purpose. Manage the relationship just as you would any other business relationship.

Don't accept poor investment performance because your advisor shares your religious faith. Keep your objectivity by clearly drawing a distinction between your personal relationship and your business relationship.

Please don't think I have anything against being a person of faith. It's quite the opposite. My wife and I have served overseas as missionaries. We've written and produced children's Bible story cassettes and created the fastest launching children's program in Christian radio history. My faith has made me who and what I am today. But my clients, the people who come to my popular financial seminars and you who read these articles do so because of my financial expertise, not my spiritual expertise.

Take these simple steps to help make sure the advisor who shares your faith should also manage your money:
1)    Find out how the advisor gets paid. If the advisor gets paid by commission there will be some inherent conflicts of interest in the relationship. Look for an advisor who is fee-based.

2)    Find out the advisor's level and area of expertise. How long has he/she been an advisor? What advanced training does he/she have that is pertinent to your needs? What is his/her specialty? Working with an advisor who is a Certified Financial Planner guarantees a level of competence that few stockbrokers or insurance agents possess but even that should just be a starting point.

3)    Ask for references of other clients who share your financial goals. Call the references and ask specific questions that will allow you to objectively measure the advisor's performance. How did your investments perform relative to the market? How frequently are you contacted? Does the advisor take action when investments don't perform as expected?

Always remember that it's your money and it's your responsibility to be a good steward of it. First and foremost, find a trained, competent professional to help you with your finances. If they also happen to share your religious beliefs that's great!

Mr. Voudrie is a Certified Financial Planner and President of Legacy Planning Group, Inc., a Private Wealth Management Firm in Johnson City, TN. Get ‘How To Avoid The 3 Most Costly Mistakes Retirees Make', a Guarding Your Wealth Special Report FREE at www.guardingyourwealth.com or by calling toll free 1-877-827-1463.






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