What Is Independent Financial Advice?
Any time you need questions answered about finances, whether it's how much insurance to buy or what should be in your stock portfolio, it's fairly difficult to find someone to give you advice who is not going to profit from doing so. You should always find independent financial advice from someone who isn't going to earn a commission by selling you something.
Depending on the type of financial advice you need will depend on the type of company or person you go to. If you need advice about stocks or mutual funds, you're always taking a chance by dealing with a specific company. Stock brokers / financial advisers are limited to selling you products their firm sells, and of course they will always promise that whatever they recommend is the best solution for you.
To be a certified financial advisor you need to be licensed in most states. If anyone represents himself as a "financial advisor" or "financial planner" ask if he is licensed to do business. If not, it's someone who probably works for an insurance company that sells insurance and investments. And of course, he'll be happy to advise you to buy whatever he sells.
Of course, there are many reasons besides investing that you might need some financial advice. Not everyone who offers advice is on commission, but he might not be an expert in the topic either. If you are looking for perhaps some advice on mortgages, you can certainly get free advice at any bank. Sure, they'll try to get to apply because they, too, are probably on commission, but since all mortgages are pretty similar aside from their APR, the advice should fit any bank you decide to do business with.
If you are looking for perhaps some advice for planning for the future, most large financial groups will do a complete financial review for you, but these can cost thousands of dollars and sometimes the resulting information is meaningless since their entire goal is not really to help you with your finances, but to sell you products that will help "manage" your finances.
Your best bet for some basic financial questions and answers is to sit down for a few hours with a CPA. He isn't expert in all areas, but he knows where to send you without costing you money for commissions on products you don't need.
Depending on the type of financial advice you need will depend on the type of company or person you go to. If you need advice about stocks or mutual funds, you're always taking a chance by dealing with a specific company. Stock brokers / financial advisers are limited to selling you products their firm sells, and of course they will always promise that whatever they recommend is the best solution for you.
To be a certified financial advisor you need to be licensed in most states. If anyone represents himself as a "financial advisor" or "financial planner" ask if he is licensed to do business. If not, it's someone who probably works for an insurance company that sells insurance and investments. And of course, he'll be happy to advise you to buy whatever he sells.
Of course, there are many reasons besides investing that you might need some financial advice. Not everyone who offers advice is on commission, but he might not be an expert in the topic either. If you are looking for perhaps some advice on mortgages, you can certainly get free advice at any bank. Sure, they'll try to get to apply because they, too, are probably on commission, but since all mortgages are pretty similar aside from their APR, the advice should fit any bank you decide to do business with.
If you are looking for perhaps some advice for planning for the future, most large financial groups will do a complete financial review for you, but these can cost thousands of dollars and sometimes the resulting information is meaningless since their entire goal is not really to help you with your finances, but to sell you products that will help "manage" your finances.
Your best bet for some basic financial questions and answers is to sit down for a few hours with a CPA. He isn't expert in all areas, but he knows where to send you without costing you money for commissions on products you don't need.
About the Author:
Need Financial Advice and don't know where to start? Learn important information about how Independent Financial Advice can turn things around for you! Learn all about getting advice on your debt and other finances today before it's too late!
By Dimas Prast
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