Paul Sullivan, in his Wealth Matters column this week, writes about a Seattle investment adviser who is accused of committing securities fraud when he put his clients’ money into investments in private companies without their consent. One reason that Paul wrote about the case is that the adviser, Mark Spangler, is a former chairman of the National Association of Personal Financial Advisors, a group that requires its members to act in their clients’ best interests.

Mr. Spangler’s investments in private companies are for only the wealthiest investors, since all the money put in can be lost. The wealthy, presumably, can continue their lifestyles, even with a losing investment.

But the column has a broader point for all investors: Try to learn as much as you can about your financial adviser before you hand over any money, and make sure you know what you are investing in. The problem is that doing the research takes a lot of time and effort.

If you have made the effort, what did you learn from the experience? Do you have tips for other investors on how best to do the needed research?

Article source: http://feeds.nytimes.com/click.phdo?i=9e0b0c42ecbf7d9a42ff9ebb60c2f9ff