Clark Howard's Financial Advisor Warning

Need to hire a financial advisor? It's so important to know who you are hiring and why you are hiring them. Clark has several easy rules to follow so you make the best choice for your money.

MORE CLARK.COM CONTENT YOU MAY LIKE:

Follow Us for More Money Tips:

Need Consumer Advice?
Need advice? The Consumer Action Center is a free community resource for advice on money and consumer issues. Call 636-49C-LARK (636-492-5275) and a member of Team Clark will assist you as soon as possible. The Consumer Action Center is available Monday-Friday from 10 a.m. to 4 p.m. ET.

If you found this video valuable, give it a like.
If you know someone who needs to see it, share it.
Leave a comment below with your thoughts.
Add it to a playlist if you want to watch it later.

Our Promise to You:

[jerel]

Good video! I wonder if you’ve heard of nectarine which is a fee based service that matches a person with a fiduciary to plan long-term investment strategy?

[RiDankulous]

All it took me was 2-3 videos to remind myself why I listened to Clark Howard so many times and have such great respect for him. Thanks for providing a great service to the community.

[July..]

My fathers favorite saying if everyone knew so much about making money they wouldn’t need mine to invest. 🤔

[thomasdunn]

A short video with a long valuable list of financial advice. Thanks Clark!

[Anthony-zwqb]

My company charges a $6 yearly fee and 0.11% fee on the total assets in our 401k plan. Should I stick with that or go heavy in my ira ? I do 100% index funds .
Thank you!

[hkk]

Problems here with DA Davidson. My mistake was thinking the financial advisor was my friend. BIG MISTAKE ON MY PART. Salesman, and never forget it. I lost thousands.

[rpm]

Mr. Howard, it just shows that “If it sounds to good to be true, it probably isn’t.” Is not a cliche.

[curiosity]

Clark I have been with you a very long time but why are you using that head set from Radio 1980's? Time to go BT or something similar. All in fun, your advice is always spot on.

[randy]

Here it is: Learn and manage your own portfolio(s). Hire a Registered Investment Advisor (RIA) to "plan" your investments and that have a methodology that can produce an "Investment Policy Statement" (IPS). An IPS will provide a snapshot of where you are currently and how to deploy your money in lifelong investments, including a "Margin of Safety" stash of cash.

I personally invest alongside Uncle Warren by owning BYDDF and OXY in my long-term portfolio. I believe in the Three Bucket Retirement Strategy. If you are retired, you should research the strategy, consider using it to manage your money (DIY) or question your RIA, recommended or Financial Advisor, not recommended, as to why they have not deployed the strategy for you.

A Financial Advisor or Investment Advisor DOES NOT place your interest in front of theirs. I know because I was a glorified Stockbroker in the mid-70s and it was just sell, sell, and more sell. I quickly got out of that business.

[chevman]

The 401k rippoff....
My 401k manager would not ... release my money ....I was trying to roll it over to another
I had to call the fbi ....
And report her ...
After which ... she did release money ...
But ... she had no .... intention of giving me my money back...I was really scared ...

[andrewparnes]

Cryto has no intrinsic value, an illusion. In the UK Financial advisors market an illusion and the client suffers. The concept that the Advisor acts in the best interest of the client is ignored. Fees matter!

[andrewmalati]

Why don’t you make a video explaining why it is financial advisors don’t do hourly fees?

[DoubleDJ]

And I’m about to hire a financial advisor in Collier County this info give me more confidence on my meeting with them tomorrow

[darrickharris]

A good financial plan would include protection (insurance) and investment (growth). First step is to understand who you are dealing with and what they do. Insurance products come with guarantees while investment products traditionally do not. Insurance is a contractual agreement which is why it has a suitability standard. The contract is between the individual and insurance companies. Likewise an investment is mostly speculative and is driven by the market. No guarantees so you need a higher standard (fiduciary) because the product carries more risk. Financial literacy should be taught in school. Study first, there are things that insurance can do that investments cannot and vice versa. I would be leery of anyone who doesn’t have balance when speaking of both. It all depends on your goals. Both insurance and investment are highly regulated.

[DoubleDJ]

Clark when we moving back to SoCal I miss the surf . I want to buy property back in Orange County but I’m not seeing the values dropping. I guess I’ll wait until fall after the home buying season, or should I give up on that pipe dream no pun intended

[bradstein]

I've been through 9 advisors in 20 years. I'm still looking for a good, honest one.

[racerx]

If anybody tells you that they make a living as an investor, and then asks you to invest your money with them, is probably a fraud. Ask them if you can see their income tax returns. I bet they won't let you see them, because it won't show that their income is derived from investments.

[Vee]

My dads been a financial adviser for 30 years, running his own business. I’ve been a financial adviser for a year and a half. He’s never, ever cheated a client.

This story being told is about a small percentage of advisers.

[mandys]

My parents had a nasty shark of an advisor they used for years. Not only did he dupe them then, he was terribly crafty in taking advantage of them when they were in a care home. He has had and recently has quite a few "listings" on Broker Check since the 1980s through currently. He is one big 🤥 to his clients. If a financial advisor smells like a rat, they most likely are.

[conservativehippie]

Wait...weren't you on HLN yrs ago? Pardon me as I just found you on YouTube yet the voice. If it's you I watched and paid attention ❤️‍🔥