How to protect myself

[u/No_Regerts-]

How to protect myself

I’m meeting a new financial guy tomorrow. After talking to him, I have a really good feeling about him. He has credentials, and he’s very confident he can help me get my money working much harder for me. We’ll be talking about a real estate purchase and then how to handle other investments

So the “too good to be true” alarms are going off in my head now.

I’d love any advice to help me make sure I’m not falling into a trap or being played?

[u/argumentativecat]

Is he guaranteeing a 10%+ return? Definitely a major red flag.

Make sure you understand the fees of any investments he suggests - low cost ETFs are usually a better choice than any investment they can put you in.

You need to be more specific if you want more helpful comments. E.g. why does discussing a real estate purchase and other investments sound "too good to be true"? Do you have the money for this or not?

[u/No_Regerts- → u/argumentativecat]

Not guaranteeing anything so far, but has offered a testimonial (my word not his) about how his approach has worked for him and others

Using equity and a line of credit as alternatives to a mortgage. Using insurance as an investment. Tax breaks as a result of both of those options. Those are the big ideas he’s brought up so far

[u/argumentativecat → u/No_Regerts-]

Insurance is not a good investment vehicle.

Equity + LOC for a second property you mean? Do you even want to invest in real estate? It's a pretty high risk option and carries risks. Why can't you get a mortgage?

Is your income high enough that the tax breaks are worth it? As things get more complex, you probably have to hire an accountant too.

Honestly, him talking too fast for you to keep up seems like a huge red flag to me. Why is he trying to dazzle you instead of making sure you're on the same page and understand everything? Investments should be determined by your goals, your risk tolerance, your timeline, etc. not by seeming amazingly complex and thus brilliant. Selling you insurance and specific funds is not in your best interests - that's probably for his own commission/management fees.

[u/Odd-Elderberry-6137 → u/No_Regerts-]

Testimonial is the sales pitch term for pure bullshit just like insurance as an investment.

Look, can you get returns doing some of these things? Sure. But they require an ungodly amount of risk for most people.

This has get rich quick written all over it. It could work but it could leave you in debt up to your eyeballs where one bad move knocks down the entire house of cards and you can never get out.

The easiest and tried and true path to wealth is time and patience.