Here’s a threat to your financial wellbeing you may not think about: receiving bad financial advice from those closest to you. We often receive solicited and unsolicited financial advice from friends, family, and colleagues every day, but have you stopped to consider what ramifications that can have? If you act on the advice from someone with poor financial habits or no experience in the field, you may be setting yourself up for unnecessary risk. Of course, these individuals mean well, but that's unfortunately not enough. In this article, we'll explore what qualities to look for in individuals that give you financial advice.
They Take Their Own Advice
The next time someone gives you financial advice, consider or even ask them, are they taking their own advice? If they’re not, this may be cause for concern. Not only should you want good advice, but you should want advice that the person giving counsel has done themselves. When you find someone who not only talks the talk but also walks the walk, you’ll feel more comfortable with their counsel and be able to analyze their results.
Their Financial Success Mirrors What You Desire
We’ve long been taught not to judge others, but in finance, a bit of skepticism may not hurt. Even though many individuals give out financial advice, they are, unfortunately, not financially sound themselves. So, ask yourself, is their current financial state something I hope to achieve? If the answer is no, you may want to reconsider how much stock you place in their words.
Their Advice is Comprehensive
When most people think of financial advice, they think of stocks and bonds or the proper portfolio mix. However, someone who offers proper financial advice should provide you with a broader range of recommendations. For example, they may be able to discuss with you different investment opportunities, the tax benefits or ramifications they have, the level of risk it will open you up to, and more. Whether it’s a financial adviser or a friend, the individual giving you advice should look at the conversation with a holistic approach.
They Don’t Always Tell You What You Want to Hear
Having a friend, family member, or financial consultant who always agrees with your ideas and objectives may boost your ego, but it can lead to poor financial planning. The individual giving you advice shouldn't be afraid to be honest in their counsel. They should always share their differing perspective and base it on well-founded knowledge and experience. Overall, you want someone who gives you financial recommendations with your long-term financial success in mind.
Schedule A Consultation with an Experienced Financial Advisor
The journey to being financially stable is not a one-size-fits-all process, nor does it happen overnight. Therefore, you need reputable advice that’s tailored to your individual situation. Here at Fourth Avenue Financial, that’s exactly what you get. Our first priority is your overall financial success. We want to help you develop, implement, and monitor a strategy designed to address your individual situation to ensure all your investments are setting you up for a path of financial success. If you are ready to start planning for your financial future, we are here to help. Contact us today at (304) 746 7977 to schedule a meeting with one of our experienced financial advisors or schedule online: https://bit.ly/3nbIQjr.
Securities are offered through J.W. Cole Financial, Inc. (JWC) Member FINRA / SIPC. Advisory Services are offered through J.W. Cole Advisors, Inc. (JWCA). Fourth Avenue Financial and JWC/ JWCA are unaffiliated entities.