Why working with a CFP® is so important

This is a frightening story about what can happen when you trust the wrong financial advisor. It highlights exactly why it's so important to understand the difference between someone who simply calls themselves a "financial planner" and a true Certified Financial Planner® professional.

Here's what happened: A couple in their mid-60s, let's call them Bill and Terry, came to me for help with their retirement planning. Four years ago, another advisor had convinced Bill to roll his $500,000 401(k) into an Individual Retirement Account (IRA) and invest it all in silver coins, claiming they were a "safe" investment.

Alarms bells immediately went off in my head. To build a solid retirement plan, I need a clear picture of all their assets. While Bill had the initial statement from when he first invested, he had nothing current. When he contacted the company, they gave him a verbal estimate of $750,000, but no statement. That's a huge red flag!

After much insistence, a statement finally arrived two weeks later, now showing the account at $645,000. A $100,000 drop in just a few weeks, while the market was doing well, and silver prices were relatively stable? Something wasn't right.

It gets worse. Bill had previously tried to withdraw money from this account, and it took two months! They wisely decided to move their IRA to a reputable firm (Abaya Wealth Management LLC) where they could have transparency and easy access to their funds.

But when Bill tried to sell the silver, he was given the runaround. Delayed responses, wildly fluctuating valuations that seemed to magically go down when he wanted to sell and up when he hesitated. It became clear they were being manipulated. Bill has demanded the company sell the silver coins but still has no idea what the final asset is worth.

This story illustrates some critical points:

• Invest with a Certified Financial Planner®: Anyone can claim to be a “financial planner.” There are no specific requirements. Whereas CFP® professionals are held to the highest standards.
• Demand Transparency: You should always have easy access to clear, current statements for your investments.
• Beware of Delay Tactics: Excessive delays or difficulty getting information is a serious warning sign.
• Question Unrealistic Valuations: Investment values fluctuate, but dramatic swings without a clear explanation are suspicious.
• Don't Fall for "Safe" Investments: All investments have risks. Anyone promising safety is likely misleading you.

This is why working with a Certified Financial Planner® professional is so crucial.

CFP® professionals adhere to the highest standards of ethics and professionalism. 

• They are fiduciaries: Legally obligated to put your interests first.
• They have rigorous education and training: They are experts in financial planning.
• They adhere to a strict code of ethics: Honesty and integrity are paramount.
• They value transparency and accountability: They provide clear explanations and documentation.

Don't let this happen to you or someone you know. Spread the word! Choose a CFP® professional you can trust.