QUALITY vs QUANTITY
You can get financial advice from just about anyone, but how do you know if it’s sound advice?
CONSIDER THE SOURCE:
Many people have your best interest at heart, but it is important to consider their experience, training, and expertise on a subject, before acting on their advice. If you talk to ten people who are not experts and you get the same advice, it doesn’t mean they are right. However, if you talk to one expert in the matter, you can take that advice seriously. In order to qualify an expert, make sure they are experienced and specialize in the subject matter.
TYPES OF FINANCIAL ADVISORS:
There are about 700k financial advisors/representatives (full time and part time combined) in the U.S. However, only about 40k – or 6% – are fiduciaries. A fiduciary is someone who has to act in your best interest by law, at all times. That means when they give you financial advice it has to be in your best interest without benefiting them (unless it’s appropriately disclosed).
IF IT SOUNDS TOO GOOD TO BE TRUE, RUN THE OTHER WAY!
Financial advice does not need to be sold, it needs to be understood. A lot of people think they’re getting advice when they’re being sold a product. That is not advice. Financial advice comes first, understanding one’s situation comes next, developing a plan of action follows. Executing that plan while prioritizing the most important issues is the final step.