Many advisers have an alphabet of professional designations after their names. Some are meaningful, others aren't. None guarantees that an adviser is honest.
FINRA posts descriptions of the designations on its Web site. The group also offers online "Scam" and "Risk" meters, to determine if an investment might be a scam or if you're at risk of becoming a victim.
Keep your eyes open
Once you hire a professional, don't ignore your investments. Read your statements. Make sure there aren't any transactions you didn't authorize, Walsh says. If so, contact regulators immediately.
How to protect yourself
1. Trust, but verify
Ask friends, family, co-workers or other professionals you work with for suggestions on financial advisers. But once you get recommendations, dig into the advisers' backgrounds.
2. Watch for red flags
Be wary when advisers claim investment returns that are much higher than what similar investments are earning.
3. Diversify
Don't put all your assets with one manager.
4. Interview prospects
Meet with at least three professionals before hiring one.
5. Keep your eyes open
Once you hire a professional, don't ignore your investments.
