Advisor Red Flag Checker
Answer 10 questions about your current or prospective advisor. We'll flag potential concerns and give you a risk assessment.
Quick Assessment
Takes about 2 minutes to complete
Common Financial Advisor Red Flags
š© They won't put their fiduciary duty in writing
Any legitimate fiduciary advisor will happily sign a written fiduciary oath. If your advisor hesitates, deflects, or says "we always act in your best interest" without putting it in writing, they may be operating under the lower suitability standard.
š© They push proprietary products
If an advisor consistently recommends their own firm's mutual funds, annuities, or insurance products over lower-cost alternatives, they may be earning hidden commissions. Ask: "Do you receive any compensation for recommending specific products?"
š© They guarantee returns
No one can guarantee investment returns. If an advisor promises specific returns, "I'll get you 12% a year", run. Legitimate advisors discuss expected ranges, historical averages, and risks. Guarantees are a hallmark of fraud.
š© They resist giving you direct account access
Your money should always be held at a recognized third-party custodian (Schwab, Fidelity, etc.) where you can log in anytime. If an advisor wants checks written directly to them, that's a major warning sign.
š© They have multiple customer complaints
Use our Complaint History Lookup to check any advisor's record. One settled complaint over a 20-year career might be explainable. Multiple complaints, regulatory actions, or terminations for cause are serious red flags.
What a Good Advisor Looks Like
A trustworthy financial advisor will: act as a fiduciary and put it in writing, clearly explain how they're compensated, recommend low-cost index funds when appropriate, use a third-party custodian, welcome your questions, communicate regularly, and have a clean regulatory record. If your advisor checks all these boxes, you're likely in good hands.