Who needs a financial planner? You do if you want to save, invest and grow your money and you have no clue as to how to get started or the best ways to achieve your financial goals.

Better Business Bureau of Southern Arizona warns that financial planning is an unregulated profession, which makes it imperative that potential clients check out financial advisers before doing business with them. CFP – short for certified financial planner – is the most significant credential. It means the individual has passed a rigorous test administered by the Certified Financial Planner board of Standards and regularly engages in continuing education.

A good financial planner should help you get a clear picture of your financial situation and lay the foundation for future investment decisions. Beware of planners who offer few or no alternatives in your investment plan, and avoid planners who use high-pressure sales tactics or promise unusually high rates of return on investments. Be on guard for possible Ponzi schemes masquerading as tax shelters, precious metals, commodities, high-tech stocks and other investments.

After you’ve gathered names of potential planners and checked them out with BBB, schedule exploratory meetings with each, where you’ll ask the following:

What is your professional background? Look for a strong track record of education and job experience covering a broad spectrum of financial planning needs. Ask whether he/she takes advantage of continuing education and training.

How long have you been a financial planner? Look for three or more years of experience and several more years of prior experience as a broker, insurance agent, accountant or lawyer.

Will you provide references? Get names of three or more clients whom the planner has counseled for at least two years. Ask them about their level of satisfaction, investment returns and intentions of staying with the planner.

What professional/trade organizations do you belong to? Membership in an industry group indicates the planner has met certain standards and requirements. Ask for an explanation of any title used by the planner, and about the requirements for use of the title and membership in, or certification by, the organization.

How do you get compensated? If the planner earns a commission, ask if he/she offers investments from one specific company or from many providers. If services are fee-based, find out how they are determined and what you’ll receive in return.

For more consumer tips and information, visit www.tucson.bbb.org.

As global markets are currently seeing extreme volatility, worried investors are seeking safe havens for their funds. Because the United States has never in its history had its credit rating downgraded, many do not know what to expect. What should be expected, however, are investment-related propositions that may not be so trustworthy.

Investment scams always exist but in times of economic uncertainty and fear, they tend to increase because scammers know that investors are looking for ways to secure their funds.

Better Business Bureau of Southern Arizona advises investors to take note of the following red flags in any investment pitch. Beware of any company that:

• Contacts you unsolicited. Be suspicious of any unexpected emails, phone calls or letters in the mail from investment firms urging you to respond.
• Requires a large upfront investment. One of the most common complaints BBB receives about investment opportunities from consumers is paying fees and not receiving the promised income. Many times, potential investors pay in advance but are unable to reach the company when concerns arise.
• Promises high returns for low risk. Every investment comes with a level of risk. If the seminar offers an investment plan claiming large returns with little or no risk, beware, even if it (more…)