Consumer Financial Choosing a Protection Bureau financial professional

Decide the type of Financial planners may charge an hourly or fixed help you need fee, a percentage of the assets they manage, a 1. commission on products they sell, or a combination Money and management of these, depending on how they are registered. A counselor or money coach can help you set advice and trades up a budget, review your expenses and track your spending so you can achieve your goals. These Discount brokers, full-service brokers, broker- service providers usually do not provide investment dealers and investment advisers provide advice or do comprehensive financial planning. investment services that range from do-it-yourself online trading to full-scale investment advice Free assistance may be available through your and money management. Fees and commissions installation family support center, Reserve or vary depending on the types of services you Guard center, a local non-profit consumer credit want. Generally, investment advisers and broker- counseling service (nfcc.org), or online at Military dealers must be registered with the Securities OneSource (militaryonesource.mil). and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and/or Financial planning state regulators, depending on the business they Financial planners can help you with a single issue conduct. help soon enough — often called a loss or map out a comprehensive to mitigation application — new CFPB rules require your meet your goals. They can also help you plan for servicer to evaluate you for options that may be , college saving, planning, , available to you to avoid foreclosure. and estate planning.

A financial planner should have an advanced Check your educational degree and experience. You may want 2. adviser’s background to look for a financial planner with a certification that The SEC recommends asking these questions to is accredited, as well as one from an organization check an adviser’s background: that subjects its members to strict ethical and disciplinary standards. This will allow you to research §§ How will I be charged and how much will I be the financial planner’s history and determine whether charged? he or she has ever been subject to a disciplinary §§ What experience do you have, especially with action. This is important because financial planners people in my circumstances? generally don’t have to register with state or federal §§ Where did you go to school? What is your recent regulators, unless they are also investment advisers employment history? or broker-dealers, or also sell insurance products. 1 of 2 §§ What licenses do you hold? Are you registered High-pressure sales tactics with the SEC, a state, or FINRA? You may be asked to make a quick investment §§ Are the firm, the clearing firm, and any other decision, or be warned that “opportunities are related companies that will do business with limited.” Don’t fall for these techniques. Good me members of Securities Protection financial advisers won’t rush you. They know it takes Corporation (SIPC)? (SIPC protects customers of time to make good investment decisions. broker-dealers as as the broker-dealer is a SIPC member.) What products and services do Exaggerated claims you offer? If you are told about that make a lot §§ Can you recommend only a limited number of of money without much risk, don’t believe it. If you products or services to me? If so, why? think an adviser made exaggerated or unrealistic §§ Have you ever been disciplined by any government claims about investment risk or returns, report this regulator or certifying organization for unethical to your state securities or insurance regulator. Like or improper conduct or been sued by a client who all other consumer issues, if it sounds too good to was not happy with the work you did? be true, it probably is.

Proceed Resources 3. with caution If an adviser is regulated by state or federal Avoid enticing offers and too good to be claims government, you can check the status of about low risk investment opportunities. Watch their license and find information about their out for: professional history using these online resources:

SEC Investment Adviser Public Disclosure Database Free seminars adviserinfo.sec.gov Any time you see a financial seminar advertised as “educational” or as a “workshop,” exercise caution. Your state insurance regulator The true goal may be to sell investment, insurance, naic.org or financial products at the seminar or in follow- Your state securities regulator up calls. Also, don’t assume military expertise just nasaa.org because they say they are military experts. The claim may be nothing more than a marketing pitch. FINRA Broker Check brokercheck.finra.org/Search/Search.aspx

Freebies For helpful tools and good information on investing Financial salespeople may use freebies like lunch investor.gov and dinner invitations, golf trips and country club outings to get you to come to marketing and sales CFPB has over 1,000 questions and answers for events. They give you something knowing you’ll be consumers, some specifically for servicemembers. more likely to give them something in return. Check out “Ask CFPB” at consumerfinance.gov. For additional information for servicemembers, email us at [email protected].

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