This question came in from an investor who lost more than $1 million because he believed the references of a shady financial advisor. Too bad he did not check with Watchdog before investing his assets.
FINANCIAL ADVISOR REFERENCES ARE WORTHLESS!
Why?
No advisor will give you a bad reference.
References are selected because they are willing to make positive comments about advisors.
References are coached to make the right comments. One reference said an advisor “was the best kept secret on Wall Street”. The advisor had a long history of selling low quality products that paid high commissions.
The reference could be anyone with a different last name – not even a client.
References may tell you the advisor averages a 20% rate of return. Testimonials are not track records. What are the odds this reference is telling the truth? Zero.
Do not select advisors based on the comments of references.