Last week I talked about some of the ways to find an adviser and some key items to look for when selecting an adviser. Ironically this past week, news broke that yet more high profile and wealthy athletes were victims of investment fraud.
Former New York Jets quarterback Mark Sanchez and major league baseball pitchers Jake Peavy and Roy Oswalt were defrauded out of about $30 million, according to a recently unsealed U.S. Securities and Exchange Commission lawsuit in Dallas federal court. These professional athletes said they were cheated out of millions of dollars in a Ponzi-like scheme orchestrated by an investment adviser who appealed to their Christian faith.
Even though a potential adviser may come to you through a trusted resource or friend, you still have the responsibility of vetting the potential adviser yourself. After all, it is still your own financial life. When going through the vetting process of a potential adviser, beware of the following:
While not fool proof, here are a few points that could help you protect yourself:
Know your values and what is important to you, how you decide to manage your finances/investments says a lot about who you are.