3 Red Flags to Watch for When Receiving Financial Advice

Everyone needs advice in their life. The world can be a big and confusing place, and having good advice can go a long way in helping ensure that you make the right decisions. One of the biggest areas of life that can use helpful advice is finances. How to deal with money is an issue that every adult faces in life, and getting good advice in this area can help support you for life.

That being said, getting bad financial advice can seriously affect your life in a negative way. That is why you must determine if the financial advice you receive is actually good advice or not. So, what are some red flags to watch out for when receiving financial advice? Below are some ideas on just that.


Any advisor, whether it be an investor or anyone else, who gives big promises with little risk should raise a red flag. An advisor, especially if they are actually investing your money, should be confident in their advice and abilities. That being said, they need to be honest about investing. Typically, big rewards only come with big risks. That means if someone is promising big things with little to no risk, it is either untrue or a “bubble” in the financial market that will burst at some point.


Another red flag that should grab your attention is a lack of transparency. This lack of transparency can be in several areas. For one, if your financial advisor and the investor is only pushing products or investments that bring them high commission, you might be dealing with a red flag. This can be a sign that your financial advisor is just a salesperson who is trying to push a product that will benefit themselves and does not have you as a priority. This lack of transparency and self-interest of your financial advisor can negatively impact your finances and can push you into bad investments.


If someone is advising you financially and is actually investing and handling your money, good communication needs to be taking place. You need to be able to see and understand where your money is going and how it will actually profit you. If your financial advisor and the investor cannot explain and break down their investment strategy to you, you may have a red flag on your hands. While they may not explain every little aspect of the investment strategy to you, a good financial advisor should be able to talk about the main concepts with you and clear up any questions you may have.

Knowing how to deal with your finances and what to invest in can be intimidating. Sometimes, getting financial advice and help can be a great way to increase your finances. That being said, you should be careful with who you listen to and allow to handle your money. The red flags listed above can enable you to avoid trusting the wrong people with your finances.

Hawaii Retirement Planning Factors That Are Often Overlooked

There are numerous people who struggle with their personal finances. Few people feel like they are saving or investing enough for the future. Retirement planning is vital to living a successful life. Many people do not realize just how much money is needed to retire and live a relaxed lifestyle. Finding Honolulu financial advisors is not easy.

At Summit Financial Advisors, our team has the knowledge needed to help you in this process. Our team members have numerous certifications in the field. Over the years, we have helped thousands of people plan for retirement.


One of the biggest financial issues that people have today is debt. Many young people start out with debt after graduating from college. Reducing debt is critical to living a successful life. It is difficult to save or invest for the future when debt payments are a huge percentage of your income.


One of the best way to build wealth over a long period of time is to invest consistently. Some people are afraid to invest their money because they do not want to lose it. By working with our financial advisors in Honolulu, you will be able to develop a strategy to help you meet your future goals.

Our team has experience designing investment portfolios based on the risk tolerance of customers. As a general rule, younger clients can afford to take on more risk than people who are close to retirement. With the stock market at a record high, now is the time to start planning for the coming years.

There are numerous alternative investments to consider outside of the stock market. Some people prefer to invest in less volatile investments. Although these investments do not have a high rate of return, some people prefer the security over the potential return.


Another critical aspect of financial planning is understanding your taxes. There are few people who understand the current tax system. However, retiring in Hawaii is not possible unless you fully understand all of the tax implications. There are numerous investment options that can help you reduce your taxes over a long period of time. When working with our financial planners, you will be able to find the investment choices that fit your needs.

Next Steps

Retirement planning is a critical aspect of living a successful life. There are many people who dream about retiring in Hawaii. However, it is critical to have a solid plan to reach your financial goals. Give our team a call today in order to schedule an appointment to get the planning process started.


This material is not intended to constitute investment or financial advice. Securities and investment advisory services offered through qualified registered representatives of MML Investors Services, LLC. Member SIPC. []. Summit Financial Advisors is not a subsidiary or affiliate of MML Investor Services, LLC or its affiliated companies. Branch address: 1255 Treat Blvd. Suite 400, Walnut Creek, CA 94597. 925-949-7400. Clients should seek the guidance of their own professional tax and/or legal advisors before making decisions.


Access to Benefit Discounts Available for Hawaii State Bar Association Members

Written by:
Glennel W. Jordan, MBA, CFP®
Financial Planner

Kelley M. Tom (Baba), MBA, CFP®
Financial Planner
Investment Advisor Representative

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