Many individuals see investments as something so complex that there is no way that they can ever be able to manage their money effectively. They throw their hands up in disgust and unfortunately listen to the first financial advisor who has a nice smile and a convincing sales pitch. The end result is that they fall more into despair as the products that they were sold do not fit with their overall objectives and long term goal. Then the next financial advisor (I mean financial salesperson) walks in and takes their money again.
Believe me, understanding the basics of financial planning is not that difficult, and virtually anyone can do it with a little help. Investors need to review potential planners and money managers with a list of questions to control the interview. Generally many of these “successful” scam artists and salespeople are very charismatic and are very good on their feet. Control the interview with specific questions designed to understand what they do and how they do it. You need to start with a plan and then go out and get the products. Financial salespeople are always there to sell a product and do not take the time to develop a plan that makes sense to you. This is one of the first signs.