By: Daniel ChencloseAuthor: Daniel Chen Name: Daniel Chen
Member: Member Paladin
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Email: dcstrategies@yahoo.com
Site: http://paladinregistry.com/external/beaninformedinvestor/advisor_profile.php?advisor_id=1893
About: Dan's specialty is delivered by his Wealth Management Practice with a core competency in Fianancial Planning. The ability to deliver services for a fee eliminates the potential conflicts of interest created by the commission only type of aproach. He maintaines his office in Ocean N.J. however serves a clientel base from coast to coast. Dan believes that the basis for a great life is planning for it. Dan offers a no obligation meeting to decide if his services are appropriate for your needs.See Authors Posts (10) | September 29, 2009 | Conflicts of Interest

Warning Signs

Here is an issue that should raise a red flag should your financial advisor ever approach you with it. It is a fact that during very difficult and uncertain financial times, individuals are more susceptible to scams and fast money making schemes. Of course there are always a few ideas, no matter what type of times we are in, that have some credibility but never the less require extensive due diligence.
Ok, here is the latest red flag on my radar. I recently took on a new client from another advisor. Aside from the normal reasons for considering this change, the client sense of urgency increased when his previous advisor started to approach he and his wife about a "multi level" marketing business opportunity. Yes, you heard me right, the advisor presented to this client a multi level marketing campaign that promised easy and long lasting stream of revenue with minimum work on their part. I could not believe what I was hearing. I was absolutely astounded by this. What was this advisor thinking about? One would think that in these very uncertain times, when you get the opportunity to sit with your clients that you would focus on reassuring them of strategies that you have put in place for them to keep them on course for their future goals. I won’t talk about the name of this multi level campaign because it really doesn’t matter. What really matters is that this type of action on an advisors part should tell you a couple of things. One, if he is spending time on this, then what kind of time is he spending on helping his clients stay and keep on track in the new and ever changing environment that we are in? Two, if he is approaching his clients with this, is he having difficulty keeping his client base and urgently looking for another business to go into? Oh, by the way, I do not think that any compliance department in the country would allow an advisor to use his influence over his clients to engage them in another business that the advisor has an "upline" financial benefit in.

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