Personal Finance Advice

When it comes to personal finances, sometimes you need to turn to someone to get some expert help because the you want to make a decision that you simply don’t have enough knowledge about to make on your own.  For example, if you’re ready to start saving for retirement you might turn to a financial planner to show you what you need to do in order to someday enjoy a financially abundant retirement or if you want to start investing in the stock market you might want to get some help from a professional who will advise you how to get started.  There is nothing wrong with turning to professionals for guidance when you have questions about personal finance, but what does matter is which professionals you turn to.

Chances are that you will wind up paying for the services of a financial professional unless one is offered as a free service of a financial institution you already do business with.  For example, some banks and credit unions have financial advisors who are on staff and available free of charge to customers, but the span of their knowledge - or at least the knowledge they are allowed to impart - may not go beyond the scope of products offered through the financial institution they represent.

Community centers and non-profit organizations may offer free assistance to people looking for answers to personal finance questions, but these programs are usually designed for people who need assistance with learning about the basics, such as budgeting and balancing a checkbook.  Who do you turn to when you need advice regarding more complicated financial matters such as where to invest your money or how to properly prepare for retirement?

Here are some tips regarding who you can trust for advice:

Personal financial advisors with adequate education and training.  Licensing regulations vary from state to state regarding who can call themselves financial advisors, so before you make an appointment with someone be sure to check out his or her credentials as well as making sure the person doesn’t have complaints pending with the Better Business Bureau.

Personal financial advisors who aren’t trying to sell you something.  Stay away from anyone who initiates contact with you because they have “a great financial deal” they want to offer you.  Competent financial advisors shouldn’t try to sell you something that they will earn a commission from.  They should steer you toward financial products that are right for you.

Personal financial advisors who charge flat fees. You don’t want to work with someone who earns a commission from selling you one type of life insurance over another.  Instead, you should know beforehand how much it will cost to meet with the advisor as well as how much it will cost for other services.  You’re more likely to get accurate and authoritative advice from a personal financial advisor who is not out to steer you toward products that will increase commission.

Expect to pay some money to get the advice you need, but beware of financial advisors who simply want to sell certain products to line their own pockets.