New Years Podcast-Episode 3

January 1, 2015

How to protect yourself from bad financial advisors, China banks lure savers with Mercedes, deal with pesky questions from Mom and Dad, and money and life philosophy.

Avoid Bad Financial Advisors

Jason Zweig of The Wall Street Journal in “Financial Advisors, What You Don’t Know“, offers some important caveats to explore before hiring a financial advisor. With so many varieties of financial advisors vying for your money, learn what to look out for and who to trust in today’s episode.

We explore why it’s important to check out your financial advisor before turning over your cash. You’ll hear stories about financial advisors who don’t have your best interests in mind. There are actually some that stick their clients in high fee accounts and even those despicable financial planners who’ve run afoul of the law.

How do you protect yourself? You should probably ask certain questions when hiring a financial advisor. We talk about what to ask and where to look when investigating your financial advisor.

Sample questions to ask your advisor include:

• Do you have an investment policy statement?


• Show the advisor a simple low fee index fund portfolio and ask him/her to evaluate.


• How are you paid?

When looking to avoid bad financial advisors, there are solid organizations to consult. Research the background of your advisor or find a reputable planner here:

• Find a fee only financial advisor at the well respected National Association of Personal Financial Advisors (NAPFA)


• Find out what types of questions to ask and how to research your advisor at the Securities and Exchange Commission (SEC)


• Do a Broker check at the Financial Industry Regulatory Authority (FINRA)


• You can almost certainly set your own, more stringent criteria, and there are other places to seek guidance.

Learn how to protect yourself and your money from unscrupulous financial planners in today’s episode.

Chinese Banks-How They’re Wooing Customers

China is in the news today. With recent high growth and a blossoming (and volatile) stock market, banks are losing out. Here are some of China’s crafty plans to keep the customers from fleeing to higher yielding assets.

In Chinese Banks Offer Goodies for Cash, Businessweek digs into shadow banks and crazy offerings. Could these practices migrate to the U.S.?

Banks are offering exciting incentives to get customers back in:

• A Mercedes car in exchange for a $145,000 deposit into a 5 year CD.


• $60,000 deposit gives you eggs and veggies for 6 weeks


• Other gifts include-gold pendant, iPhones and more.

We talk about whether this is a viable investment  for U.S. citizens or whether these types of giveaways will migrate over to the U.S.

The Worst Questions Your Parents Will Ask and How to Answer Them

Over the holiday season, Mom and Dad may be asking those ‘personal’ questions. Here’s how you can arm yourself with answers.

Those listeners in your 20’s and 30’s, get ready for annoying questions from Mom and Dad, such as:

• Why can’t you hold down a job?


• Why aren’t you married?


• Why don’t you have kids?


• Why are you living in a dump?

But, don’t worry, we give you ideas about how to handle the questions from Mom and Dad, from a ‘young and oldish’ perspective.

Inspiration article; The Nine Worst Questions Your Parents Will Ask You This Week, and the Data You Need to Answer Them, from Businessweek.com by Natalie Kitroeff and Akane Otani.

We wrap up this episode with some inspiring money and life banter by Bobby and Barbara. You’re bound to feel good!

(Featured image courtesy of epsos on Flickr)

The post #3-How to Avoid Bad Financial Advisors, Chinese Banks, and Dealing With Mom and Dad’s Irritating Questions appeared first on Young and Oldish Money.