Most of us look to financial experts for their knowledge and advice because, well, they’re experts. We pay them for that knowledge because we lack it ourselves. Unfortunately, that knowledge isn’t always as valuable as you might think, particularly when it comes to financial advice. In fact, it’s more valuable to become your own financial expert. Why? Financial professionals aren’t always right, and they don’t always invest with your best interests in mind. Discover how you can improve your investment performance by managing these inherent conflicts of interest…
Investment Due Diligence 101 Tutorial Guide
Investment Due Diligence Requires Asking Tough Questions, Because What You Don't Know About An Investment Can Hurt You
Investment due diligence is what separates professional investors from novices.
Thoroughly investigating each investment, broker and money manager before handing over your money can protect you from catastrophic loss and help you make more profitable, informed investment decisions.
The primary objective of any due diligence checklist is to answer four basic questions:
- What are the expected investment return characteristics?
- What is the investment risk profile?
- Are the people competent?
- Are the people honest?
Unfortunately, performing investment due diligence is not easy. Investment styles vary widely, reporting results aren't standardized, and accessibility to key personnel so that you can get your questions answered can be difficult.
And if that weren't enough, due diligence takes more time and effort than most people want to spend on the process.
Fortunately, there is a solution: an efficient short-cut for due diligence is available through the internet.
It's now possible to complete preliminary, basic due diligence on virtually any investment, broker or money manager for almost no cost and a few clicks of a mouse. This can save tremendous time and effort by quickly eliminating obvious frauds and other unsuitable investments.
By starting your due diligence process with an internet based checklist you can save valuable time and money allowing you to focus more thorough due diligence only on investments meriting a second look.
See the articles below for the information you need to develop your own, personalized due diligence process:
- Due Diligence: Five "Must-Ask" Questions Before Making Any Investment - Learn what due diligence questions to ask so that you can avoid losing investments before they cost you money.
- Twelve Insider Tips For Finding Financial Advice You Can Trust: Find out if your financial advice passes this "gold standard" test by learning the essential questions that can separate good investment advice from bad.
- Investment Fraud Prevention: A Due Diligence Checklist - Reveals the crucial questions to protect you from investment fraud and send the con-artist ducking for cover.
- 6 Reasons To Become Your Own Financial Expert - Learn the conflicts of interest hiding behind financial advice and why you must always perform you own due diligence to make smarter, more profitable investment decisions.
- Variable Annuity Due Diligence: Uncover the truth hiding behind the variable annuity salesman's hype so that you can independently decide if it is an appropriate investment for you.
- Ten Commandments of Investment Strategy: Find out how your investment strategy measures up to proven success principles and learn what you can do to increase your financial security. Includes a section on due diligence.
Below you’ll find a listing of our most recent articles about investment due diligence providing you with additional strategies and information so you can take the next step…
Warning: How Wall Street Takes Your Money – Legally!
How does Wall Street covertly take money out of your pocket without committing investment fraud, and what can you do to protect yourself? Why does Wall Street hide the paper trail showing how much money they take from your investment account if they don’t have anything to hide. The fact is they do have something to hide, and this article reveals their dirty little secrets so you know what to watch out for and how to protect your accounts. What you don’t know can hurt you.
Due Diligence Checklist To Prevent Investment Fraud
Investment fraud is surprisingly common so don’t delude yourself into thinking it won’t happen to you. But how do you protect yourself? This due diligence checklist will give you all the important questions to ask so the con-man never gets your money. An educated investor who does his homework is the con-man’s worst nightmare. This checklist will show you the exact steps to take so you can flush out fraudulent investments before they ever cost you money. Arm yourself by learning more here…
Five “Must Ask” Due Diligence Questions Before Making Any Investment
An ounce of prevention is worth a pound of cure. Cliche, but true. And nowhere is it more true than investment due diligence. I’ve saved my coaching clients hundreds of thousands of dollars using the exact techniques taught in this article to easily detect bad deals before a single penny was lost. Use this article to help you avoid the next big investment mistake…
Top 26 Warning Signs Of Investment Fraud
Discover the top 26 warning signs of investment fraud before they cost you money. You’ll learn the sneaky tactics you need to look out for, the essential knowledge you need to avoid investment fraud, and 5 simple principles that will safeguard your portfolio from investment con-artists. Forewarned is forearmed…
FM 016: How To Choose A Financial Advisor with Michael Kitces
It’s hard to know how to choose a financial advisor. There is so much value at stake; yet, how can you tell the experts from the charlatans? Who can you trust? How do you really know? In this latest episode of the Financial Mentor Podcast I’ll give you a step-by-step due diligence checklist for how to choose a financial advisor that perfectly fits your needs. You’ll discover how to sort through the maze of confusion so that you can get the expert help you need to reach your financial goals – without getting ripped off…
FM 008: The Shocking Truth About The Financial Advice Business With Jeff Rose
The financial advice business is riddled with conflicts of interest, hidden fees, and financial incentives that can cost you dearly if you don’t know how to protect yourself. Get the inside scoop showing you how the various investment product sales models work – warts, blemishes and all – so you can improve your investment performance and manage risk more effectively…
Peer To Peer Lending Review – Dangers Revealed
In a world of zero percent interest rates peer to peer lending can look mighty tempting. Investor’s are starving for yield and P2P lending companies have risen to satisfy that need. Don’t be deceived. Look behind the emotional facade at default rates, unknown risks, operating difficulties and more so you can make a smart investment decision…
How Smart People Make Dumb Financial Mistakes (so that it doesn’t happen to you!)
Bad information is just a tiny piece of the problem and rarely the real cause. The core issue is your thinking process. Here is the story of my stupidest financial mistakes so you can learn from my experience and not let it happen to you…
Avoid Losses: 5 Ways Investment Research Lies To You
Things are seldom as they appear. Nowhere is this more true than investment research. Every day another trading system or sure-fire investment strategy is published. They always look good on the surface – impressive statistics, testimonials, lots of social proof. You’ll find them in best-selling books, or published by authority figures like professors, or endorsed by a trade journal. None of that matters because it can still be total hogwash. Here is how you sort fact from fiction to protect your portfolio…
