What does Dave Ramsey say about financial advisers?


Quick Answer

Dave Ramsey advises people to hire a financial adviser "with the heart of a teacher who can explain complex issues in a way you can understand." He explains that this is important because this type of financial adviser, "will explain every detail to you until you get it."

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Full Answer

While evaluating a potential financial adviser, Dave Ramsey warns on his blog that hiring someone who works on commission may lead to problems. These problems can occur because of a conflict of interest. Dave Ramsey encourages people to always ask how the adviser gets paid and what fees they may incur with the investments the adviser recommends. Ramsey believes that if a situation does not feel right, then it is important to keep looking for a different adviser.

Dave Ramsey says that the most important factor in choosing a financial adviser is trust. He recommends that consumers obtain referrals from people they know and trust. Next, he advises investors to obtain the adviser’s Form ADV from the state securities regulator or through the SEC’s Investment Adviser Public Disclosure website. In addition, getting a financial adviser with three to five years of experience can help people focus on their long-range goals, explains Ramsey's blog.

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