
Not surprisingly, financial advisors are more interested in telling you what they can do for you than admitting what they can't. It's a good idea if you ask them directly what they can't do from the very beginning, so you don't waste time later in your relationship.

A good financial advisor will make it clear that they're not perfect, and that the markets will go down as well as go up. The reality is that all markets will recover eventually, but most investors don't want to hear that, and so bad advisors don't tell them what they dont want to hear.

Be very, very careful if your financial advisor suggests a Guaranteed Investment Contract, or GIC. This is a large-denomination debt instrument that insurance companies issue, and while the interest is guaranteed, the principal isn't. It's not a good idea for most investors.