If you’re between 55 and 64, you’re likely at the strongest financial point of your life. According to CNBC, the median net worth for Americans in this age range sits at $364,500, more than double that of people in their late thirties and early forties. But the numbers matter less than the timeline behind them. These are the years when the cost of choosing the wrong advisor is highest. [1]
Evaluating an advisor isn’t as simple as checking their credentials, and as I’ve written before, the fiduciary rules enforced by the SEC and FINRA are reactive by nature. They protect you only after something goes wrong.
Some advisors are genuinely looking out for you. Others are looking out for themselves while sounding like they’re not.
Here’s how to tell the difference.
Red Flag #1: Leading With Products, Not a Plan
Has a friend ever told you, “You’ve got to meet my advisor, he got me into this incredible annuity”? Or maybe you’ve sat down with someone who seemed determined to sell you on a particular investment before even learning your last name? Twenty minutes in, they’re pulling out brochures for indexed annuities or the latest tax strategy, and they haven’t asked about your family, retirement goals, or what keeps you up at night.
That’s a warning sign.
A good advisor doesn’t start with products. They start with you. They want to understand your values, your health, your family, and what you actually want retirement to look like.
Recommending products before understanding the person is like prescribing medication before examining a patient. A trustworthy advisor gets to know you and your situation first, then the recommendations follow, not the other way around.
Red Flag #2: Bragging About Market Timing
One of the easiest ways to spot someone who doesn’t know what they’re talking about is when they start bragging about timing the market. These guys will swear they can predict exactly when to get in and out of an investment, and they’ll promise to know where things are headed next.
I knew a guy who swore by market timing. Every conversation was about moving in before everyone else and getting out before the crash. For a while, he looked brilliant; some of our friends were starting to question my cautionary, measured reactions. Until his brash approach caught up with him. Eventually, his brazenness backfired and losses piled up. During the last recession, his parents, who had fallen for their successful son’s confidence, found themselves relying on him financially. It was a bitter pill for his dad to swallow after a lifetime of prudent hard work.
No one consistently predicts short-term market moves, and knowledgeable advisors know this. Instead of chasing the next sure thing, a disciplined strategy matched to your goals is designed to help you stay invested through the inevitable ups and downs.
The real value isn’t catching a hot trend. It’s helping you make good decisions when emotions are pushing you toward bad ones.
Red Flag #3: They Do All the Talking
Financial advising is about money, but it’s about far more than dollars and cents on a spreadsheet. At its core, it’s a people business. If you don’t genuinely care about people as an advisor, you’re in the wrong profession.
Watch what happens in your first meeting. Does the advisor dominate the conversation? Do they ignore your spouse? Do they spend more time presenting than asking questions?
A good advisor listens. Retirement planning touches hopes, fears, family dynamics, health concerns, charitable goals, and life transitions, not just account balances. Two clients with identical portfolios can need completely different plans because their lives look nothing alike.
You should walk away from every meeting feeling heard. An advisor can’t put your interests first if they never learned what those interests are.
Red Flag #4: Thin or Misrepresented Experience
Everyone starts somewhere. You did. I did. Every advisor had a first client once.
But heading into retirement, you have too much riding on the outcome to hand it to someone still learning the basics. There’s also a real difference between years in the industry and years doing this specific work. Someone can spend fifteen years in trading or product sales without ever guiding a family through retirement income decisions, a market crash, or a long-term care decision.
Newer advisors often do excellent work helping younger clients build the habits that grow a nest egg. That experience counts for something. But planning for clients who are nearing retirement requires a different perspective, one developed over time while helping people through life transitions and market cycles.
If your advisor is early in their career, ask whether they work alongside a more experienced advisor or are mentored by someone with substantial experience in retirement planning. Depth of knowledge matters as much as length of service.
Red Flag #5: Seeming to Have Something to Hide
Advisors are in the trust business, and they should be willing to do what it takes to build that trust.
If an advisor becomes defensive when you ask about credentials, their regulatory history, compensation, or who actually holds your assets, take that seriously.
A professional with nothing to hide should welcome reasonable questions.
You should always understand who the custodian is, how the advisor gets paid, what licenses or designations they hold, and whether any conflicts could influence recommendations. You should also feel comfortable checking public records and verifying their background yourself.
You don’t want someone who tries to rely on impressive titles or marketing slogans to establish credibility. You should look for an advisor who can explain their process clearly, openly disclose potential conflicts, and encourage clients to do their homework. A good advisor values transparency and appreciates clients who are informed, curious, and engaged.
An Ounce of Prevention
Benjamin Franklin had it right when he said, “An ounce of prevention is worth a pound of cure.” The damage from the wrong advisor relationship is avoidable, and avoiding it starts with knowing what to look for before you sign anything.
Finding the right advisor isn’t about chasing perfection. It’s doing enough homework upfront to stack the deck in your favor.
At Falbo Wealth Management, we’re not just managing investments. We aim to understand the person behind the portfolio and to build a thoughtful plan designed around the life you want to live. If you’d like to talk through what that looks like for you, schedule a complimentary 20-minute call or reach out at 908.490.1190.
Sources:
1. https://www.cnbc.com/select/average-net-worth-of-americans-ages-55-to-64/
This material has been prepared in collaboration with Crystal Marketing Solutions, LLC, and has been edited with the assistance of artificial intelligence tools. The information presented is based on sources believed to be reliable and accurate at the time of publication. This material is for educational purposes only and does not necessarily reflect the views of the author, presenter, or affiliated organizations. It should not be construed as investment, tax, legal, or other professional advice. Always consult a qualified professional regarding your specific situation before making any decisions.