3 Questions Before You Trust Anyone With Your Money
Before you hand a stranger your rating letter, your back pay, or your retirement, ask three questions that take ten minutes and can save you a lifetime of regret.
The simple version (what it is)
The day your rating hits, the sharks show up. "Financial advisors" who are really salesmen. "Claim sharks" who charge thousands for help a free VSO gives away. People who call themselves a "fiduciary" but pocket a commission on whatever they sell you. You do not have to be an expert to protect yourself. You just have to make anyone who wants your money answer three questions, and then verify the answers on free government websites before you sign anything. This page shows you exactly how.
Do this today, step by step
Question 1: "Are you VA-accredited?" (verify it yourself in 3 minutes.)
Anyone helping you with a VA claim must be accredited by the VA. Do not take their word for it. Go to the VA Office of General Counsel accreditation search at va.gov/ogc/apps/accreditation/. Type in the person's last name (and state, to narrow it), then hit Search. If they are legit, they show up as an accredited attorney, claims agent, or VSO representative. If nothing comes up, they are not authorized to represent you, walk away. You can also find a free accredited rep at va.gov/get-help-from-accredited-representative/find-rep/. Note: this list is updated periodically, so a brand-new rep may lag by a few days.
Question 2: "How do you get paid: a fee I pay you, or a commission on what you sell me?" (get it in writing.)
This is the money question for anyone touching your investments or insurance. You want fee-only: they are paid only by you (a flat fee, an hourly rate, or a percentage of what they manage) and take zero commission on any product, ever. "Fee-based" is a different word that means they can do both, which is where hidden commissions hide. Ask plainly: "Are you fee-only?" Then ask for two documents by name: Form CRS (the Client Relationship Summary, which lists how they are paid in plain language) and Form ADV Part 2A. Any real registered advisor hands these over without blinking. If they dodge, that is your answer.
Question 3: "Will you put in writing that you are a fiduciary on everything you recommend?" (then check their record.)
A fiduciary is legally required to put your interest ahead of their own paycheck. A salesman is not. Ask them to state, in writing, that they act as a fiduciary on every recommendation, including any annuity or insurance. If they will not sign that sentence, stop. Then verify their record for free:
- For a broker or anyone who sells securities: brokercheck.finra.org (FINRA BrokerCheck). Search their name, read the employment history and any disclosures, complaints, or regulatory actions.
- For an investment advisor: adviserinfo.sec.gov (the SEC's Investment Adviser Public Disclosure / IAPD). BrokerCheck links straight into it.
- A membership signal (not a substitute for the checks above): NAPFA (napfa.org) members are required to be fee-only fiduciaries.
Then, and only then, sign. If a person fails any one of these three, you have your answer. Real professionals expect these questions and respect you for asking. Only predators get offended.
Already got burned, or want to report someone? Here's where.
For VA claims fraud, accreditation violations, or claim sharks: report to the VA Office of Inspector General at vaoig.gov/hotline or 1-800-488-8244 (this is the OIG fraud hotline; it is a different number than VA's general 1-800-827-1000 benefits line). For a broker, advisor, or insurance product: file a complaint with FINRA (brokercheck.finra.org has a complaint link), the SEC (adviserinfo.sec.gov), or your state insurance commissioner. For general consumer fraud: reportfraud.ftc.gov. Reporting does not cost you anything and does not require a lawyer.
The catch (one honest watch-out)
Being on the VA accreditation list, or clean on BrokerCheck, means someone is allowed to operate. It does not mean they are good, or right for you. The checks screen out the frauds; they do not pick a winner. And know this on claims: an accredited VSO helps with your claim for free, always. Attorneys and claims agents are barred by law from charging you for an initial claim; they can only charge a fee after the VA has decided your claim and you have appealed, and that fee is capped (commonly up to 20% of back pay). So if anyone demands a big check to "file your first claim," that is the tell. Use a free VSO instead.