• Financial Advice

  Filed under Money Saving Tips
  Nov 19

  There really is no shortage of people willing to offer financial advice. Financial planning and financial advising is a huge industry. But as with any kind of advice in life, some advice is good advice and some advice is bad advice. The question is how to know which is which?

  I will make it easy on you. Here is the Golden Rule when receiving advice about your finances:

  Never trust advice from someone who sells financial products.

  That is a pretty easy one to remember, right? Let me explain why.

  Let’s say you want to by a refrigerator. You have two options: you can either go straight to a company who makes refrigerators or you can go to somewhere like Sears. If you go to Maytag, a maker of refrigerators, and ask them “what is the best refrigerator?” Would you be surprised if they told you Maytag made the best refrigerators and that you should buy from them?

  Or how about Sears. The person helping you there is a sales associate who gets paid on commission. You ask “what is the best refrigerator?” The response? Well, the most expensive one of course! Not because it is the best, but because if sold it gets him/her the best commission.

  So why is it that people go to professional financial advisers when looking for financial advice? They will all try and convince you that cash value life insurance is the way to go. Why? Because if you get into that investment with them then they make the most in commission off you. If you want objective advice, you need to go to an objective source. When it comes to finance, these are usually free sources who are not trying to push a product on you and who do not sell financial products.

  If you want advice on investments, get it from someone without any hidden interest into what investments you decide on. Free financial advice can be found all over the Internet, you just have to look for it. But remember, free advice is usually the best advice. And that is the best advice I can give you.

  Tagged as: financial advice
  
  No Comments

Leave a Reply

Name (required)

Mail (will not be published) (required)

Website

CAPTCHA Code