Free Investment Advice for New Investors

Posted by Grace under Investing on November 6, 2014

Some beginner investors are looking for free investment advice, some investors didn’t even know the effects or cost of FREE investment advice. There are many financial advisors nowadays are actively promoting financial products and insurances. If you are just a beginner in the field of investments, you should be careful in dealing with the financial advisors especially when they are giving you a free financial investment advice. In my previous topic, I already mentioned the characteristics of a good financial advisor, read the topic for your reference.

FREE Investment Advice that May Cost You Too Much

It is true that anyone can give you an advice, especially if you are asking for it. Do not rely on someone’s advice especially if the advice is not proven or effective. Think about this, if you have millions of money and you are only taking free advice, it means you are not willing to invest. Why don’t you invest first in “education”, try to hire financial experts or financial planner and pay him some money. If you take and follow free advice from someone else, it is possible that your millions will lose easily, the worst is, you can never get back the time you wasted.


If you want to succeed in investing, invest with the professionals, although, you will pay for their services, but you will be more confident enough because you know the investment advice came from professional that has hands-on experiences in investing.

Example: Professional service fee for an independent financial planner, will cost you around $250 (just an example), would you take risk with your millions of money or not. Of course you will, because you know the advice is “smart” and “realistic”, but if you take free investment advice that cost you nothing ($0.00) and take risk with your millions of money, I think you are just wasting money and time.

The reasons why some people are losing money in the investment world is because lack of knowledge, why they are lack of knowledge? It is because they aren’t willing to pay money for “education”, a registered financial planner will teach you everything from personal finance to wealth accumulation. Why not hire them to teach you and guide you to succeed in investing.

Free Investment Advice for New Investors

Some financial advisors who are selling insurance are focusing their own interest rather than the client’s interest and needs. They sell and offer financial products which they think they get huge sales commissions, but on the client’s part, it is costly and not needed.

Since the client isn’t familiar with the investment products, the financial advisor or agent will push the products that he think he will make big sales commissions. You better watch out for the insurance agents, some talks like a “pro” but they aren’t, they are “pro” in making sales commissions but not “pro” in helping the client to achieve financial freedom, agree?

I am not against financial advisors, me and my husband has an experience in dealing and talking to a “financial advisor”, my husband ask for his term insurance, although my husband is just a simple guy, wearing a simple clothes and a simple shoes.

The advisor make a quick judgment, as if my husband didn’t know mutual funds, the advisor offer an insurance plus mutual funds, my husband ask the financial advisor if their company is on top performing mutual funds, he says “YES” confidently, but when my husband open his tablet and read mutual funds performance, he don’t even see the company’s name on the top 10.

The advisor keep on asking me and my husband when should we decide, the advisor insist the VUL (variable unit linked). Due to professionalism, we listen to the advisor but after the talk, we just tell the advisor that we make a call after few days. At night, I make a phone call and say “thank you for your presentation, I will just make a comparison from your offer to other company’s offer, I will call you after few days, but if you haven’t receive any call, that means I accept other offers, thank you”. As simple as that.

Warning: Ask financial investment advice from the registered/certified financial planner only, it is also recommended that a financial planner should have his own hands-on investing experience.

Free Investment Advice is Dangerous to Your Health and Wallet

While I am writing this article, I am just wondering if you understand what I am talking about here, a plain and simple English. I hope you are following, why FREE investment advice is dangerous? Assuming you are planning to retire after 20 years, what if you took a wrong investment advice and you will only realize that the advice is wrong when you retire, it will be a big mess in your financial journey.

Actually it will bring you lot of stress, remember you want financial freedom not financial stress. If you are at 65 and you are experiencing lot of stress because you are thinking the time and money you wasted because of “FREE and WRONG advice”, then you will be suffer not only your wallet but also your health. Now, you know why free advice is dangerous.

Our example is $250 for a cost financial planning service. Is $250 a reasonable amount to get a “smart investment advice” or let’s say “smart retirement planning advice”?. I think it is a small amount of money compare to “free advice that will cost you too much”. It is just a common sense, agree?

Effective Investment Advice Shouldn’t Expensive

Smart investment advice from financial experts shouldn’t be expensive. If you treat it as a part of your investment, it will not be an expensive. I explained awhile ago, I will never put my trust to a wrong investment advice.

To Whom Should You Ask for an Advice?

The question you should ask yourself, where can I get smart investment advice? Simple, attend financial literacy seminars, do not ask an advice for the attendees or guests, ask for an investment advice from the “speaker”. You got it? Mostly, the speakers are financial experts, why should they become a financial literacy speaker if in the first place, they are not experts. Simply means, they know everything, one thing for sure, they met a lot of clients or investors, they are expert in giving financial advice or retirement planning advice.

Now, there is a social media. There are investment group on Facebook or financial websites offering free investment advice, but not all members aren’t experts, they are just members. My conclusion, if you ask for an investment advice in the Facebook group and someone replied, hey, you better think million times for that advice before making an investment decision, although the advice sounds great, it is still the most risky advice because it is not came from the financial experts or a registered/certified financial planner.

Don’t Rely on Your Own

Maybe you are thinking now, “I don’t need an advice, I can do the investing alone”. It is true that it is easy to invest nowadays due to the past facing technology. Yes, you can do it alone, but, you can do just the basic, such as opening an investment account, funding your stock broker etc. The question is “how do you know you can achieve financial freedom” in your own strategies?

How do you know that the investment vehicle is suited for your needs and goal? How do you know that the investment vehicle is really good for your risk appetite? How do you know if the investment vehicle is good for your “RETIREMENT”? You will only only know this when the right time comes, whether you win or lose. But the worst, as I have said awhile ago, you can never get back the time and money wasted. If you listen to financial experts, one thing for sure, they will give you an idea on how to achieve financial freedom.

Can you do a investment research, do you know taxes, are familiar with the investment funds, are you familiar with the stocks and the companies.

Common Sense: Would you take an advice on how to get rich from poor people? Of course not, poor people will teach you how to become poor while rich people will teach you to become rich.

In my other topic, “what makes an investment risky?”, some readers add their point of views, and they emphasized that “an investment is ricky due to lack of education”. See other reasons now.

Other topics to read: What makes an investment risky?

Anything Else? Don’t stop reading : Some free investment advice are scam. You better know on how to spot the financial investment scam, before it’s too late.

Read the Guide: How to Spot Financial Investment Scam?

Final Thought and Reminders:

Financial advice is expensive if you are not a real investor. You better ask an investment advice from the financial experts who has a hands-on investing experience. It will be more good to you if you listen to the advice of registered/certified financial planner who became rich because of investing, not those financial advisors who are just making money because of sales commissions.

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