₦airaland Forum

Five years ago, Bernard Madoff turned himself into federal authorities and admitted to conducting a massive Ponzi scheme. Investors lost approximately $17.5 billion, of which $9.5 billion has been recovered and $4.8 billion has been distributed. When all is said and done, total losses are expected to be about $5.5 billion.

The anniversary of the Madoff scandal is an excellent reminder that investors must be vigilant when choosing to work with an investment advisor. The Financial Planning Association provides an easy-to-use tool to help you select the right kind of professional for your needs. When you are ready to talk, here are the ten questions to ask potential financial advisors, stock brokers or insurance salesmen before you retain them:

1) Are you registered as an investment advisor? If yes, then the advisor owes you a fiduciary duty, which is a fancy way of saying that she must put your needs first. Investment professionals who aren't fiduciaries are held to a lesser standard, called “suitability,” which means that anything they sell you has to be appropriate for you, though not necessarily in your best interest.

2) How will I pay for your services? The advisor should clearly state in writing how she will be paid for the services provided. The three basic methods of payment are: fees based on an hourly or flat rate; fees based on a percentage of your portfolio value, often called "Assets Under Management" ("AUM"; and commissions paid per transaction. How often you expect to trade, and whether you want your money pro-actively managed, will help determine which model works best for you.

3) What experience do you have? Find out how long the advisor has been in practice and where. Also ask if she has any professional certifications, licenses or designations. While these are signals of credibility, they don't guarantee a successful relationship. Here’s a description of some of the more common financial planner designations:

CFP® certification: The Certified Financial Planner Board of Standards (CFP Board) requires candidates to meet what it calls “the four Es”: Education (Education (through one of several approved methods, must demonstrate the ability to create, deliver and monitor a comprehensive financial plan, covering investment, insurance, estate, retirement, education and ethics), Examination (a 10-hour exam given over a day and a half; most recent exam pass rate was 62.6 percent), Experience (three years of full-time, relevant personal financial planning experience required) and Ethics (disclosure of any criminal, civil, governmental, or self-regulatory agency proceeding or inquiry). CFPs must adhere to the fiduciary standard.
CPA Personal Financial Specialist (PFS): The American Institute of CPAs® offers a separate financial planning designation. In addition to already being a licensed CPA, a CPA/PFS candidate must earn a minimum of 75 hours of personal financial planning education and have two years of full-time business or teaching experience (or 3,000 hours equivalent) in personal financial planning, all within the five year period preceding the date of the PFS application. They must also pass an approved Personal Financial Planner exam.
Membership in the Membership in the National Association of Personal Financial Advisors (NAPFA): NAPFA professionals must be RIAs and must also have either the CFP or CPA-PFS designation. Additionally, NAPFA advisers are fee-only, which means that they do not accept commissions or any additional fees from outside sources for the recommendations they make. In addition to being fee-only, NAPFA advisers must provide information on their background, experience, education and credentials, and are required to submit a financial plan to a peer review. After acceptance into NAPFA, members must fulfill continuing education requirements. The stiff requirements make NAPFA members among the tiniest percentage of registered investment advisers, with only 2,400 total current members.

4) What services do you offer? The services offered can depend on a number of factors including credentials, licenses and areas of expertise. Some offer advice on a range of topics, but do not sell financial products. Others may provide advice only in specific areas such as estate planning or tax matters.

5) What is your approach to financial planning and investing? Some advisors prefer to develop a holistic plan that brings together all of your financial goals. Others provide advice on specific areas, as needed. Make sure the advisor’s viewpoint on investing is neither too cautious nor overly aggressive for your risk tolerance. Also ask whether the planner makes investment decisions herself, or depends on others in the firm to do so. What was the advisor's performance in both good and bad markets and ask yourself whether it’s more important to you to make money in a rising market or prevent losses in a down market. A great follow up question: what were the three worst investment decisions you made over the past five years, and how did you correct them?

6) Can you provide three references? Ask for two current clients whose goals and finances match your own, as well as a professional reference, like an accountant or estate attorney.

7) Do you have a financial interest in the entity that houses my account? This is your Madoff-prevention question. When interviewing advisors not associated with large brokerage or insurance companies, ask if they use an independent, third party custodian or clearing firm (this is the entity that produces your statements), which prevents the advisor from having direct custody of your assets and adds another level of security for your account. In the Madoff example, he was the investment advisor, broker-dealer, clearing agent and custodian for all of his client accounts.

Is there anything in your regulatory record that I should know about? Part of your research should include conducting background checks on the professional you may hire. You can visit the Securities & Exchange Commission and FINRA websites or the State Securities website NASAA as well as the CFP Board. While some violations are non-starters (settlement of multiple customer complaints) others may be understandable (marketing materials not pre-approved; non-client or investment violations).

9) How often will we interact? What should you expect in terms of frequency of verbal, written and in-person communication? Also ask whether the advisor will remain your primary contact.

10) Do I like this person? You are about to enter into an intimate relationship that will hopefully last a long time. If you have any reservations, move on. There are plenty of qualified advisors out there, who would like to help you out.

For more, go to JillonMoney.com

http://www.jillonmoney.com/how-to-choose-financial-advisor-questions-to-ask/

Who else got a mail from unilever asking me to take the online test on or b4 13th of this month,this is after I took the numerical test immediately I completed d application last tuesday...after d numerical test I ws nt directed to take d verbal only for me to get this other mail asking me to take d test...abeg make we reason if u got this mail

Good day all, this is just a way of informing the house that Abuja candidates who wrote their appt test and documentation in April 2013 have been called upon for two separate interviews last week and we await medicals which i gather that it wil be very soon(but i don't know hw soon is very soon)....i thank God i and some of the people i met at my 1st interview centre scaled through, at my centre we were 16 (10 guys and 6 ladies) my interview was kinda tough as i spent longer time than everyone who went in before me and i felt i didn't do well (by my own assessment)but i was surprise when i got a mail for the 2nd interview. On getting to the venue of the 2nd interview we were reduced to 8(6 guys and 2 ladies) which means passing the test is not just a criteria you will be picked(it's a fight till finish) so one's best is required.


NB: i had to update the house because i noticed Abuja candidates hardly comment on this thread...but we get info from here

In practice, “investing” has come to encompass a whole range of strategies and actions that would include those commonly found in historical definitions of “speculation.”

Those definitions often cited the intent to capture large gains or to capture gains quickly – essentially, running the course as the hare would in the fabled race with the turtle. You know how that turned out.

But as long as we are starting with semantics, consider the broader meaning and use of “speculation” in our language.

We speculate all the time in our lives about what might be and what may come; general definitions of “speculation” refer to conjecture, supposition, and even guessing, the degree of supporting evidence being a factor in determining what is speculation and what is not.

When viewed that way, even those who consider themselves investors (turtles) rather than speculators in fact speculate quite a bit about the future. Communications from investment firms provide plenty of evidence of that, as does close inspection of their investment processes. That’s not surprising: The world is uncertain and speculation is required.
Let's have your opinion of the difference between investing and speculation.

culled from CFA website: http://blogs.cfainstitute.org/investor/2013/07/15/what-is-the-difference-between-investing-and-speculation-and-why-does-it-matter-forum/

Aladine: Yes som of those that did test 22nd..xpecialy dos that choosed kaduna as their state for the interview..they r already done wit medicals..the remainin 22nd april pple that choosed abj is 42..urs wud com afta this ts..

@Aladine:wow dats like waiting till November before we go for Ts...Tnx for d info I appreciate it...unto d next thing while I patiently wait..

Aladine: TS in abuja 22nd july..

@Aladine: tnx for ur info...but pls I wud want u to help state if those that will resume training skool on ur aforementioned date are those who partook in d recent appt test and documentation of 22nd and 23rd April, 2013 respectively...I'm asking because I took d test and did my documentation as stated above bt haven't heard from them...NB anyother person with info regarding this will b highly appreciated.

@spdf: i don't know what happened, i hate to admit it but i still fink politics(man know man) played it's part...anyway i hv moved on eva since.

@spdf:there's no assurance until u hv gotten ur offer letter,i'm a living example....in 2010,i was dropped from access bank recruitment even afta i met with their HR manager(Bolaji) that was actually d final interview...so neva say neva...i also heard someone cn be dropped afta training school...so it's fight to finish

Good day house,
Please are there pple who wrote the Gtb test in abuja on the 22nd of April and have as well done documentation?...i fall into the two categories above...i did my test on 22nd,got a success mail on 23rd and i did my documentation and essay on 23rd, but i am yet to hear from them afterwards....if there's anyone who hv been called for interview shud let d house know so follow up can be made.
Thanks.