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Sound Advice: February 26, 2025

What Financial Advisers cannot do for you 

Financial advisers provide valuable guidance, but there are several things they cannot or should not do:

  1. Predict the Future
    Financial advisdrs cannot foresee future market movements or guarantee investment outcomes. Their advice is based on research and experience, not certainty.
  2. Guarantee Profits
    No adviser can promise that you will make money on investments. Market risks are inherent, and returns depend on various uncontrollable factors.
  3. Make Decisions for You
    Advisers can guide you, but the final decisions about your finances rest with you. They cannot force you to save, invest or spend in specific ways.
  4. Provide Legal or Tax Advice
    Unless they are also licensed attorneys or certified public accountants (CPAs), financial advisers cannot offer legal or detailed tax advice. For these matters, you should consult specialized professionals.
  5. Act Without Your Consent
    Advisers cannot take action on your accounts without your explicit authorization. Always ensure you understand and approve their recommendations.
  6. Eliminate Conflicts of Interest
    Some advisers may prioritize their own financial incentives, such as earning commissions from certain products, over your best interests. Be aware of how your adviser is compensated to avoid potential bias.
  7. Handle All Financial Services
    Advisers may lack expertise in certain areas such as estate planning or advanced tax strategies. You might need additional specialists for comprehensive financial management.

N. Russell Wayne

Weston, CT

203-895-8877

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