Some advisors may be professionals who watch the markets on a regular basis. They may have a background in business and finance or be certified or licensed as financial planners. But there are also people who may want to give you advice with no financial background and/or who don’t understand your particular financial position.
Here are some people you shouldn’t be getting financial advice from – and how to choose a good financial advisor instead.
1. Family members
Your family may be well-intentioned when they give you advice on where to save your money or where to invest it. They may have had their own successes with doing things a certain way and they think you should follow.
But family members may not have the financial understanding that you need to review your portfolio and offer sound advice. And they might not have the professional training to know the specific details that help – or hurt – your investments.
2. Your friends
Friends could be another great asset when it comes to bouncing around ideas for stocks you may want to invest in or for different options for your savings and spending cash.
But like your family, your friends may have their own plans that might not fit your particular financial situation. They may also be wrong about that flashy stock or get-rich-quick scheme that they’ve invested in and need you to be a part of if they’re ever going to get that money back.
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3. Financial product sales associates
Do you know about the latest way to get rich or the best new investment strategy that you haven’t heard of? There may be a reason you haven’t heard of them even if you are a sound investor.
