When you have financial questions or concerns where do you go for help?   In the market place today you have a lot of financial help available.  You have access to the same resources as the wealthy, you just need to know where to get those financial resources.   Let’s start with a list of resources, a breakdown of the services provided and the advantages of each source.

For some of your financial needs you can go to a banker, financial broker or financial adviser; each one offers different services and different expertise.   Which one you choose to work with all depends upon your personal financial needs.

The one financial need that those financial professionals usually cannot help you with is your credit rating.   You will need to order your credit scores through one of the 3 national credit reporting agencies.

Let’s look at your options.

How The Wealthy Choose Their Financial Help:

Tip # 1 – Banks: you can use a bank for the following financial help:

  • Auto Loans, Student Loans
  • Mortgage Loans, Refinance Loans
  • Credit Cards, Checking Accounts
  • Certificates of Deposit, Savings Accounts

As you can see, most banks offer the basics.   Some banks in recent years have expanded their services to include more advanced financial services.  The fees charged for bank services have a wide range; each bank is different.

Tip #2  – Discount Brokers: The advantages of using a discount broker:

  • Place stock trades at a lower fee basis.
  • Transactions are generally handled online.
  • No investment advice provided.

Where The Wealthy Get Financial HelpThe fees charged by discount financial brokers for services rendered are generally less than those charged by full service financial advisors because of the services offered.   A discount broker offers little to none investment advice, which helps keep the fees low.

When you work with a discount broker that just places trades for you, you personally have to make the decision on which stocks you want to purchase and then the broker will complete the trades for you.  You would be more apt to work with this type of financial broker when you are confident with your investment decisions and do not need advice.

Tip #3 – Full Service Brokers & Advisors:  The benefits of using a full service broker:

  • They provide investment advice.
  • Monitor your investment account.
  • Determine your personal investment profile.
  • Completes a comprehensive fact finder to understand your financial needs, allocation mix, risk tolerance and financial goals.
  • Reviews your account on a regular basis.
  • Provides you investment recommendations.
  • You will pay more for the services of a full service financial advisor than you would pay for a discount broker.   The cost difference is because of the advice the full service financial advisors give you.  There is a cost to advice and recommendations.

It is important to understand the value of the advice.    It is important to understand that the investment profile the advisor creates is very important because future recommendations and advice would pivot from this profile.   It is important to appreciate the value of an advisor reviewing your account regularly.    It is a safe bet to ask the financial advisor to have you review all the investment recommendations before implementation.

Whether you chose to work with a banker, financial broker or financial advisor all depends upon your personal investment experience. Depending upon your financial needs each type of financial professional can be of value to you.

Before committing to a relationship with one of the financial professionals, do your homework to determine what you are personally looking for.  Do you need someone to simply trade for you or do you need more advice and investment recommendations?   There is no right or wrong answer, getting financial help is a personal thing.    The wealthy get financial help and so can you; just be aware of the different financial resources available to you.