If you make it this far, you are clearly serious about your endeavor. Now it's time to make your quest a daily habit. Subscribing to the The Wall Street Journal will give you a daily overview of the issues impacting global business operations. The WSJ also has a great "Money and Investing" section. Barron's is another fine publication read by many professionals in the financial services industry. There are many other top-quality publications dedicated to various aspects of the financial services world. Find one that matches your interests and read it.
After you have covered the basics and want a solid overview at a more detailed level, The Wall Street Journal Guide to Understanding Money & Investing is a great place to start. When you are done with that, your local library or bookstore will contain a variety of magazines covering both timely and general financial services topics. When you are ready to learn about equities, Value Line is a great publication that provides an introduction into how you can begin to research and analyze stocks. Even if you choose not to conduct your own stock analysis, the website is worth a visit.
In this environment, there is always something new to consider, something old to revisit and something interesting just beyond the horizon. Keeping up with the industry is an important part of a financial services professional's life, and continuing education is required for many of these experts to maintain their credentials. What this means for the self-taught expert is that you will always have an opportunity to add to your body of knowledge.
When you’re working with a financial professional, it’s key to find out if he or she follows the fiduciary standard. A fiduciary has different obligations than someone bound only by the suitability rule. Fiduciaries must always act in their clients’ best interest – and if they don’t, you have legal options to pursue. Ultimately, when it comes to choosing someone to manage your money, you should find someone you can trust.
Personal Capital funded a research study that found that nearly half of Americans erroneously believe all advisors are legally required to always act in their clients' best interest. Not only is this wrong, but it can also be damaging to the millions of savers and investors who unwittingly expose themselves to biased and potentially dangerous advice from advisors who can do what is best for themselves, at the expense of their clients.
The terms "financial planner" and "financial advisor" typically mean the same thing, but certainly, not all financial planners or financial advisors are alike. The level of education, training, and experience that a professional has will make a big difference in the quality of the advice you receive. Some people do their own financial planning, and others look for professional assistance. An experienced financial planner can usually help improve the quality of the financial decisions you make.
Typically, financial planners earn their living either from commissions or by charging hourly or flat rates for their services. A commission is a fee paid whenever someone buys or sells a stock or other investment. For reasons we’ll explain later, you may want to avoid financial planners who rely on commissions for their income. These advisers may not be the most unbiased source of advice if they profit from steering you into particular products.
Dave Ramsey is an American multimillionaire entrepreneur and radio host who has built a strong reputation for eliminating debt. Having filed for personal bankruptcy protection just two years after becoming a millionaire at age 26, Ramsey learned the hard way that being in debt inhibits a person’s ability to create wealth. Since then, he has never borrowed money and often boasts about the fact that he has no credit score.