December 31, 2009

Bernie Madoff. Allen Stanford. You don't have to go too far to find bad financial advisers. What are some red flags that investors should keep an eye out for?There are usually some tell tale signs that your adviser may not have your best interests at heart.If your planner guarantees you big returns on investments, watch out. Investing is always risky and there is no way to guarantee a particular level of return.

And, as Madoff's victims found out way too late -- your checks should go to a third-party custodian who is actually holding your funds, not directly to the planner or his company.Another sign: You're pressured to buy a specific investment -- remember this is your money, after all, you have to be comfortable with how its being put to work.One word of caution -- firing an adviser just because you haven't made a double-digit returns over the past two years is wrong-headed.