If you wonder why it is easy to get “free” financial advice on the web, but hard to get “real” (i.e., actionable) advice from a professional at a reasonable price, here are the reasons.
- Most financial advisors are not trained to offer advice in modular, usable amounts to middle income people. Instead, their training and continuing education are designed to help them solve complex problems common to high net worth, high income folks who pay them higher fees.
- Free financial advice is offered by financial services companies to set you up for a sale. It isn’t “bait and switch”, precisely. In sales parlance, advice is used as a “loss leader”. The advisor gets a prospect, the prospect gets “free” or inexpensive advice. But, strangely, prospects often walk away from that kind of meeting having purchased a financial product (mutual fund, CD, insurance policy, annuity). It seems, in this fact pattern, as if “financial services” is not about solving your problems or answering your questions, but instead is about selling you a financial product.
- It is difficult to know who to trust! How do you know who are the advisors with the real expertise and the ethical white hats. For safety’s sake, you need to look to the training, licensing details and reputation of each advisor. For taxes, see an Enrolled Agent or a Certified Public Accountant. For technical investment questions and securities analysis, you may choose to see a Chartered Financial Analyst. For general financial planning, investment, cash flow management and life event help, see a Certified Financial Planner professional. All these professionals have received up-to-date, current training and have the analytical tools to help you make good decisions.
- It’s hard to get “face time” with an expert in their office without paying high fees. However, you may be able to get online access to these folks at a reasonable price through sites that help you identify the problem you need advice on.
If you want free advice, you may be in for an unpleasant experience. But if you want help in making an important decision and will pay an advisors hourly rate or flat fee for good advice, there is help out there. Dependable advice must offer the option of recommending doing nothing, waiting for a better time or opportunity or price or milestone before acting or walking away when the issue is currently too risky. The professionals who give advice this way are called “fiduciaries”. They are worth their weight in gold and are beginning to be available to all. Advisors who blog here can serve you as fiduciaries. You can also examine some credentials of other real pros here.
Kevin Condon is a Certified Financial Planner™ professional licensed with a registered investment adviser that provides personal financial advice online for a flat fee. His firm, located in Boulder, Colorado, includes a portal through which expert, independent advisors give advice. Find advisors there for help on virtually any financial need.
