Worst Financial Advisor Companies in America and How to Find a Good One

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Who you trust with your money can help make you or break you. One good case in point is former world heavyweight champion boxer Mike Tyson. Despite making over $300 million during his career, he lost it all and filed for bankruptcy in 2003. Working with only the most capable financial advisors is crucial to preserving and increasing your wealth, here are the The 5 worst financial advisor companies in America and How to Find a Good One

A strong personal finance plan includes clear planning for the type of advisor you need. Below, we show you the key considerations you need to know to choose a financial advisor that increases your personal wealth, and the worst financial advisory companies.

The 5 worst financial advisor companies in America and How to Find a Good One

1. Difference Between Fiduciary Vs Financial Advisor

There is a buzzword that you need to introduce to your financial lexicon. That word is fiduciary. Knowing the difference between fiduciary and non-fiduciary financial advisors can affect your entire financial performance. This is because there are key differences in how these types of advisors work for you.

Financial fiduciaries are defined as investment advisors regulated under the Investment Advisors Act of 1940. Under this fiduciary standard, an advisor is strictly required to put the client’s interests above the advisor’s own. Among other things, advisors cannot purchase securities for their own account before purchasing them for clients. If there is a conflict of interest, the fiduciary must disclose it to the client.

2. How to Evaluate a Financial Advisor’s Track Record

When it comes to financial performance, track record is everything. Top investment managers like Warren Buffet and Ray Dalio have posted huge returns year after year.

Therefore, an important step to take is to carefully evaluate a financial advisor’s history of providing financial advice. You want to see a winning record. Ideally, all financial advisor clients are much better off after they start working with the financial advisor than before.

3. Determine the Level of Risk You Can Accept

Another important part of working with a financial advisor is knowing your acceptable level of risk. This helps you set boundaries and expectations early.

An advisor may recommend something for you that doesn’t really fit your personality. For example, if you have an ultra-conservative approach to risk, you will favor safer investments. Investing in hot new tech stocks or something speculative like cryptocurrencies won’t suit your temperament.

4. Why You Should Choose a Paid Financial Planner

Certain financial advisors make money by charging an hourly fee for your advice. Or, they may set fees for certain services and packages.

On the other hand, some financial advisors make money from commissions for deals they recommend for you. They are hired by someone else to sell you an item.

As you can see, there will be cases where your interests are not fully aligned. Given this possibility, you should choose to work with an advisor whose source of income is clear to you.

5. five Questions to Ask When Interviewing a Financial Advisor

You should interview your prospective financial advisor very carefully to ensure they are capable of meeting your financial goals.

5 America’s Worst Financial Advisors: 2020

1. Dain F. Stokes, $576,000

The SEC blocked former LPL Financial broker Dain F. Stokes of Fremont, New Hampshire, for fraud in which he allegedly solicited $576,000 from three clients, falsely claiming that their funds would be used to invest in a lucrative investment project in Africa involving pop music artist Taylor Swift and Microsoft co-founder Bill Gates.

“Taylor asked me to personally ask you for money”, Stoxes texted one client, “lol, she likes you! Let me know.” Let me know.” In addition to the bar, Stokes agreed to pay a fine and restitution..

2. Mark L. Hopkins, at least $1.15 million

Former American Portfolios Financial Services representative Mark L. Hopkins misappropriated at least $1.15 million from at least five customers of Holbrook, a New York-based broker-dealer, according to the SEC.

In a complaint filed in July, the SEC said Hopkins told his senior clients that he was investing their funds in a local credit union investment program. However, the investment program never existed and Hopkins instead deposited client funds into accounts he controlled at the credit union, according to the SEC.

3. Dean S. Mustaphalli, over $2.3 million

Advisor in Queens, New York, Dean S. Mustaphalli is accused of running a massive hedge fund scheme targeting elderly investors while operating the now-defunct Mustaphalli Capital Partners Fund.

He was convicted and sentenced to 3-9 years in prison after pleading guilty to 22 felony charges, including grand theft and securities fraud under the Martin Act, New York Attorney General Letitia James said on October 16.

4. Steven F. Brown, $3.3 million

Steven F. Brown of Marina del Rey, California, ran a financial consulting firm and was an accountant for a non-profit organization that provided dance and theater arts education for children and young adults in Los Angeles.


He solicited investments in what turned out to be a $3.3 million Ponzi scheme “from people he met through his position at his company, and through his relationship with its executives and employees, which gave him access to high-net-worth individuals,” according to the U.S.

California Central District Attorney’s Office.. In September, he agreed to plead guilty to one count of criminal wire fraud.

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5. Paul Horton Smith Sr, over $10 million

Paul Horton Smith Sr. of Moreno Valley, California, was arrested on May 21, 2020, on a federal criminal complaint alleging he defrauded dozens of his clients, many of whom were elderly retirees, in a long-running Ponzi scheme that netted him more than $10 million.

On October 19, 2020, the SEC obtained a final judgment against Smith for disgorgement of $4.2 million in ill-gotten gains plus pre-judgment interest of $383,059, and also ordered Smith to pay a civil penalty of $4.2 million.

That’s some of the worst financial advisory company information hopefully useful

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