Getting financial advice is easy. But getting GOOD financial advice? That’s a totally different matter.
You don’t have to look very far to find financial advice. Ask almost anyone and they’ll have something to say on the matter: Buy all the bitcoin you can afford! Invest in this company! Forget about real estate! Life insurance is overrated!
Financial Advice: Complaints against financial advisors
Everyone has an opinion on personal finance. And unless you’re consulting a professional, that’s what these pieces of advice really are: opinions. That’s why in order to find good financial advice that will get you the results you want, turn to a certified financial adviser. Not these folks, no matter how well-meaning they are.
1. Your perpetually broke friend
Got that one friend who can barely make ends meet, yet still has so much to say when it comes to your personal finances? It doesn’t take a rocket scientists to figure out that perhaps he/she isn’t exactly the best person to ask for financial advice.
However, we can always learn from mistakes—they don’t necessarily have to be yours. So yes, you can learn a thing or two from your broke friend: what not to do.
2. Your crazy rich friend
On the other hand, just because someone has a lot of money doesn’t automatically mean that they’re the best people to ask for financial advice. Because they have a huge financial safety net, they have the luxury to take more risks and make bad financial decisions.
3. Your family
Nobody in the world knows you better than your family. While this closeness is important in many facets of your life, it could easily work to your disadvantage when it comes to your finances.
You’re a grown woman right, but your family might still see you as that little girl perpetually tripping over her shoelaces. They can’t help it! Your family might also give you advice based on what they want for you, instead of helping you towards your goals.
4. Friends and colleagues
Most, if not all, of friends and coworkers don’t know the ins and outs of your current situation. Would you be comfortable baring everything to them—your balance sheet, your financial goals, your relationship with money?
They might have plenty to sound advice to give, but take their advice with a grain of salt. Unless they can see the whole picture, they can’t fully grasp what you really need to do to reach your goals.
5. That self-proclaimed financial whiz on LinkedIn
Know that one dude on social media who calls himself a financial expert? You probably shouldn’t take his word for it unless he has the credentials to back that claim up.
Absolutely anyone can dish out financial advice and appear to know what they’re talking about. Their strategies may have worked for them, but that doesn’t necessarily mean that it’ll work for you.
6. Financial advisers with terrible track records
Conversely, just because someone is certified to be a financial adviser doesn’t mean that they’re a good one. You could be given really bad advice, or worse, swindled out of your hard-earned money. Do your research, ask for references, and make sure that your financial adviser is the real deal.
Who should you ask for advice from?
For good financial advice, the best thing to do is to turn to a professional. Look for a pro who you can be open with regarding your financial situation and goals. A good financial adviser will explain the ins and outs of different products to you so you fully understand what you’re purchasing.
There’s nothing wrong with listening to non-professionals’ advice. Just because they’re not certified doesn’t mean that you can’t learn anything from them. However, before making any big decisions, it’s best to run everything by a professional.