Getting free online financial advice sounds like a good idea. But like most of the things you find on the internet, not all of them are from reliable sources. It is therefore your responsibility to research where the advice is coming from before you adapt it into your current financial situation. You want to avoid the situation wherein you take a financial advice and turn a bad situation into something worse. Since you got the advice for free, the advisor won’t be held accountable for it.
If you are having second thoughts about getting free online financial advice, don’t let it dampen your spirit. Just because one apple is bad, that does not mean the whole bunch is. It is all about finding the best sources for financial advice. It is not easy but you have to put in the work if you want to get the information you need for free.
If you are trying to determine if an online financial advisor is the best route to improving your financial situation, here are a few things to consider.
Level of Advice Needed
When you get free online financial advice, don’t expect to get comprehensive information about how you can improve your current financial situation. Most financial advisors offering free advice online will only give you generic advice with minor consideration on your unique situation and needs.
On the other hand, if you have a massive investment portfolio with a seven-figure amount on the line, a robo-advisor is certainly not the best place to seek out financial advice. You want a more dedicated financial expert to look into your investments and help you make decisions based on the information at hand. Leave online financial advice and help to those who have a more modest portfolio or require help with basic financial planning.
Quality of Source
There are several online financial advisors but they are not the same. This is the same with traditional financial advisors too. For both of these types of financial advisors, there are several factors that can impact the quality of the financial advice you get such as the amount of compensation, types of clients they have worked with, and the area of expertise. The area of expertise is one thing that you should look more closely into. The world of finance is extensive and there are several aspects to finance that you should know about.
What’s Behind the Advice
When you pay a financial advisor, you can dictate what their intentions are. But when you get free advice from an online source, it becomes tricky. It is incumbent to do your homework about the online advisor before taking advice from them. Make sure you know their personal motives and their track record in the industry. You can ask questions or conduct your own research about the methods used. The more you know, the better you can utilize the information you get.
Seeking help from online financial advisors is neither a good or bad thing. It is up to you how you use the information, as with most other information you find online.