Who gives the best financial advice?

by Kristina on May 10, 2014 · 5 comments

Man reading

Good morning Dinks. Let me ask you a question, when you need a new product or service who do you ask for advice? If you want to eat at a new restaurant, if you want to buy a new face wash or if you are trying to choose your next vacation destination who do you ask? Now if you wanted a referral for financial advice would you ask the same person?

I like to try new products based on advertisements I see in magazines. I am one of those people who is really drawn to advertisements with famous people. When I see a product in a magazine that I want to try I like to rip the page out and then pick it up next time I’m in the store. When I am looking for a specific product or service I like to ask my friends for their opinions. However I know that some of my friends have more extravagant tastes than I do so their referrals are usually out of my price range.

Where do you get your financial advice?

Maybe you go directly to your bank. As a former bank employee I admire bank loyalty. I liked being the first source of information for my clients. There are so many products offered by each bank such as foreign exchange transactions, investment options and credit solutions that it’s rare clients would need to go anywhere else for financial advice. However we live in a world ruled by the bottom line. Sometimes a 0.50% interest rate can make clients want to shop around for their banking needs.

Maybe you still talk with your friends. My friends and I always talk about money, but maybe that’s because we are all current or former bank employees. Money is a major part of our professional lives, and in most cases it’s the common factor of how we became friends. So talking about our money, both good and bad, just seems normal. If I wasn’t a financial planner and needed financial advice I would definitely talk to my friends.

Maybe you are a DIY-er. Are you the type of person who likes to make their own decisions when it comes to matters of money? If so then maybe you prefer to do your own research and give your own financial advice. If this is the case you probably prefer to make your own investment transactions with a discount broker. Online discount broker firms offer attractive pricing and low fees in exchange for all products and services being DIY.

Maybe you need a professional. If you have sophisticated investment needs then you may need a broker firm for financial advice. If you have financial planning, estate planning or offshore investment needs then you should probably seek the expertise of a professional broker firm. Investment professionals charge fees for their services but if you need their service and can’t provide it yourself through a discount broker then it’s a fee well worth paying.

Where do you get your financial advice?

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{ 3 comments… read them below or add one }

1 Kathy May 10, 2014 at 8:38 pm

Unless you count getting ideas as advice, we are definitely DIYers. We subscribe to Value Line, WSJ and Barrons plus a few financial magazines and get ideas from them like the name of a stock. We also read them to learn about new sectors of Business Development instruments. My husband has participated in a few webinars presented through Vanguard and TD Ameritrade. We feel no one can look out for our best interest better than we can. If we succeed, all the credit is ours. If we fail, all the blame is ours.

2 kg May 11, 2014 at 12:05 pm

I agree with Kathy. I also think that having a spending plan (other people call them budgets but that sounds too punitive) where you track expenses is extremely important. I am the one who drives the financial learning and investing in our family despite being female. Other than 401k we didn’t start investing for retirement until I became 49. We come from a working class background so can’t really ask family and friends for advice. (Very few people I know read.) I read, listen, and learn from books, magazines, and CDs readily available from our library. Based on our experience, when you’re young and busy if you have 401k available, just put the maximum in. So what if the mice (managing mutual fund companies) nibble around the edges. At least you’re saving something and maybe if you’re lucky your company matches a portion of it. Do not touch it no matter how dire your financial circumstances become. Don’t worry about the balance going up and down. Read and know yourself. Maybe take some training, often times available through your city (if it’s sizeable) on landlord training if you think you might want to slowly invest in real estate. I think people in real estate groups can be to high paced and risk liking for me. Put a small account at a low frills broker that offers free classes and investing ideas. However be aware, those “teachers” are not living off what they make from their investments. I started our current path by reading “Rich Dad, Poor Dad”, I am currently re-reading “The millionaire next door” for inspiration. Another favorite book is the “Richest Man in Babylon” I gave a copy to all the young adults in our family but who knows if any of them will read it. Too bad they couldn’t make a movie about it with vampires, action, blood or guts in it.

3 Kristina May 18, 2014 at 7:33 pm

I also love a good DIY because as nerdy as it sounds I like researching new investment options.

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