Advisers can be Dangerous to your Wealth

Your adviser may be dangerous to your wealth. Not many years ago, a person's word was taken as his/her bond. Those days have changed. Today it is necessary to have everything in writing with signed and sealed agreements that compel one party or the other to fulfil certain obligations that have been agreed to.

The same suspicion should now be of advisers. You need to remember that just because you have a professional adviser advising you, it does not necessarily mean that your wealth is being protected or that the person is 100% honest in dealing with your assets.

We are continually faced with lawyers, financial planners, or other professionals who from time to time are reported in our newspapers as being guilty of fraud.

We know that most advisers are honourable people who have a professional obligation and responsibility to look after our affairs. It is the dishonest and negligent advisers we need to watch. We mention negligent because an adviser does not necessarily have to be dishonest to be a danger to your wealth.

Poor advice or negligent performance of duty, such as in the placing of your investments, can cause you loss.

Be more aware than ever before of what you are about - what instructions you give to your adviser and what advice your adviser gives to you. For example, some accountants are good at accounting, but they are not up to date with the finer points of taxation.

If your requirements are mainly for tax saving or tax reduction, then you need to seek an accountant who specialises in that area.

Just because someone is an accountant, it does to necessarily mean they know enough about tax to help you. Being an accountant does not make them a tax expert, just as being in practice as a general practitioner does not give that GP the knowledge and expertise to carry out brain surgery on you.

This warning is applicable to all advisers and does not target any particular profession or group. It is a general warning that you should not leave everything to your adviser, but you should familiarise yourself a little with the subject or project in question before passing over your hard earned cash or assets to an adviser.

© 2005 StartRunGrow

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