True or false? To get an adviser, you need to:
- Have lots of money
- Know a lot about investing
- Pay high fees
Answer: All false. The truth is, most people can use good financial advice and it doesn't have to cost a lot. Without advice, you run the risk of losing money for at least three reasons:
- You might not know what to do. There may be better ways to handle your money than you, your friends, or your family know.
- You could fall for a scam. If you miss the warning signs, you could end up losing money in a deal that looks good but is actually a fraud.
- You may end up doing nothing. Some people worry about making a big mistake, so they just put their money in a savings or chequing account. They miss the chance to earn more in a safe way. Even worse, they may spend their savings a little at a time until the money's all gone.
Can't I just ask my family and friends for advice?
Although friends and family can help you find an adviser, they are not usually the best people to speak with for financial advice. Why?
- You and your friends may have different ideas about what you want your money to do.
- Unless your relatives or friends are financial advisers, they may not know the best advice to give you.
- Friends or family could give you what seems like a hot tip, but they may have been tricked by scam artists. This even happens where you think you would be safe, such as in places of worship. Scam artists look for groups where people trust and respect one another. They join the group and then try to trick its members into fraudulent investments.
Remember: Most people can use good investment advice
Good advice from an experienced professional can help you meet your financial goals.
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.