Problem Statement
It’s difficult to verify if your investment advisor is licensed and legitimate without going through extensive paperwork and research.
The Fix
The simple life hack is using FINRA’s BrokerCheck or the SEC’s Investment Adviser Public Disclosure website to easily check an investment advisor’s credentials, view any disclosures, licenses, and employment background. These databases are updated regularly and provide a quick solution for ensuring legitimacy.
How to Do It
- Go to FINRA’s BrokerCheck: Link
- Search for your investment advisor by name
- Check the disclosure section for any issues or legal actions in their professional history
- Review their licenses, employment background, and other relevant information on the SEC’s Investment Adviser Public Disclosure website: Link
Extra Use Case
This hack is also useful when switching investment advisors or verifying a new advisor recommended by a friend. It’s always better to be safe than sorry when it comes to your financial security.
Under 60 Seconds