Meeting with a financial advisor in Pittsburgh can be of great help to those struggling to manage their finances efficiently. Financial advisors are trained experts who can help devise a financial plan to help people achieve their goals while taking all risks and liabilities into account.
Those who have never received financial services from a professional advisor may be wondering if they can obtain this advice for free.
In fact, according to research conducted in 2011, 31 percent of potential investors believe that personal financial services are free, and a third of the group did not know how to pay for this kind of financial guidance.
Furthermore, most participants preferred to pay commissions rather than account fees for financial services.
Here are a few facts for those hoping to obtain free financial services to consider.
There are Different Types of Financial Advisors
Some financial advisors are fee-based. This means that they work on a fee per hour or service that they provide, rather than commission-based advisors that sell financial products such as Individual Retirement Accounts or IRAs, earning monthly or yearly commission on those products.
In this sense, a client may receive free financial advice if they choose to work with a commission-based advisor, who may not charge clients for advice, even if they decide not to take the products they have been advised to take.
However, not all advisors work on a commission basis, so those searching for a holistic financial advisor to prioritize their needs and help them work strategically towards their goals may be required to pay financial advisors.
Free Advice from Untrained Advisors Can Have Consequences
Many people are not aware that there are consequences for administering financial or investment advice without the proper training or authorization. Financial advisors undergo much training and are often required to obtain certification before they can offer clients advice.
Those who offer complimentary financial services may not be qualified or authorized to do so, and may be subject to fines, jail time, or both. It could also cause clients to lose money as this is often a scam tactic used to get money from investors.
Therefore, it is advisable to steer clear of anyone who makes unrealistic claims, offering free financial consulting services, especially if there are any red flags about the business or services it offers, as it is likely that they are not qualified to do so or may be part of a scam syndicate.
Reputable Financial Advisors Often Have a Field of Expertise
Often, financial advisors specialize in a specific type of service. This means that they have dedicated time, effort, and often a lot of money to become experts in their field. With this kind of expertise come better solutions to financial problems. It also means that clients must pay for this type of specialized expertise.
Specialist advisors may charge for financial advice differently or as they see fit. On the other hand, investment specialists dealing with large investors may not charge a major investor a fee for consultations, as managing their account can bring in a great deal of business for the firm.
The Bottom Line
Many people do not expect to pay for financial advice. However, it is essential to understand that financial advisors invest much time and money into their firms, obtaining the necessary qualifications and authorization to offer clients their advice.
If clients notice that a firm offers free financial advice, it may just be that the firm is not authorized to do so, so it is best to do some research before obtaining any financial services from them. Additionally, it is always best to call ahead to determine the costs of hiring a financial advisor and not assume that their services are free.
It is vital to understand that to a financial service provider, time is money, and when they dedicate their time to a client, it is their expertise that they are charging for.
Need Sound Financial Advice? Contact the Kelley Financial Group Today!
At the Kelley Financial Group, we are dedicated to providing clients with sound financial advice to help them accomplish their goals. We treat our clients with the utmost respect and confidentiality, providing the needed support throughout their financial journey. Contact us to book a consultation today!
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