So, you think you might need some financial help, but reckon you can go it alone. Afterall, there’s so many podcasts, blog posts, YouTube videos and books (hello Barefoot Investor!) that can help you do it all without a financial adviser right?
It’s true that there’s a LOT of resources out there on money matters, investment tips and all sorts! But like with everything on the internet (and beyond), read and research with a bit of caution, because one of many benefits of working with a financial adviser like Wealthy Self, is that we know your personal situation inside out. Which means we can give you the BEST advice for YOUR individual situation, (sorry Barefoot!)
So, can you tell the difference between General and Personal advice? Let’s break it down…
General Advice:
- Doesn’t consider your goals, personal or financial situation. It’s broad-reaching advice that generally sounds good but may or may not work for you individually, because your life is different!
- Is generally low cost or even free like buying a book on budgeting, following advisers on social media or signing up for a newsletter i.e. The Barefoot Investor.
- Will often have a disclaimer stating that the advice is general and will often recommend seeing a financial adviser for your individual financial needs.
- Can also be provided by a financial adviser before and throughout an agreement with them, i.e if you approach an adviser in person or online with a few general questions.
Risks with taking General Advice:
- If you follow general advice and suffer a negative outcome, there is likely to be no liability against the provider of the general advice, because there is usually a disclaimer covering them.
- General Advice information can accessed be found but might not always be correct as the provider doesn’t have to be qualified to give general advice. Whilst the advice might sound good, you’ll need to do your own due diligence on what is best for you and your family. General advice might not be suitable for you or take into consideration your detailed history and background to give you the best outcome – no matter how well-intentioned the advice. It’s best to do some research not just take the general information as being appropriate for you without seeking professional financial advice.
- Mass general advice can be misconstrued as being the ‘best’ option for everyone, which it isn’t because one size doesn’t fit all!
Essentially, general advice is just that. It’s general and non-specific to the people that are reading/hearing it.
Personal advice is the complete opposite! An adviser will ask you a lot of questions and ask you to provide paperwork so we can ascertain what the best possible strategy is for you and your unique situation, because no two people are the same!
Personal Advice:
- Can only be given by a qualified professional, unlike general advice.
- Considers your personal situation before making a specific recommendation.
- The cost of advice is generally higher than general advice because it factors in your personal details which takes time and expertise.
- The cost of personal advice depends on many factors including the scope of your strategy, the time it takes to implement, and the type of advice provided.
- Incorporates the legal responsibility for the advice in meeting the client’s goals and objectives, which can give you peace of mind!
- Provides information relevant to you, your goals and objectives based on your actual data and situation.
- A qualified professional does the due diligence to ensure your advice is accurate and in your best interests.
Risks with personal advice:
- If you don’t give all the details your adviser asks for, you can’t expect the best advice for situation, so be honest, supply all the details and paperwork because they’re working in your best interest. Trust us, we’ve seen and heard it all so nothing will surprise us!
- You get what you pay for, i.e the cheapest option can often reflect the time spent on the advice and can affect the overall quality.
- Like everything in life, getting the results you want can take time. Personal advice might not be the “quick fix” you’re looking for, but it can certainly help you get short term results, whilst building on your long-term financial future too.
General Advice Disclaimer
This blog contains general advice only. You need to consider with your financial planner, your investment objectives, financial situation and your particular needs prior to making any strategy or product decision. InterPrac Financial Planning Pty Ltd and its authorised representatives do not accept any liability for any errors or omissions of information supplied in this document except for liability under statute which cannot be excluded.