Accessing free professional financial advice is easier than you might think. While there are fees associated with financial advisors, there are several resources to which you can turn for quality advice that won’t cost you anything. Here’s a look at several professional financial resources that will provide tips for managing your finances for free.
Where to Get Free Professional Financial Advice
Your Bank or Credit Union
If you have an account with a bank or credit union, you have access to the financial professionals, articles, tools, and other resources that the financial institution has to offer. Your local branch may have professionals or you may be able to access them by calling customer service. These experts can provide information and advice on a range of subjects, including financing an automobile, opening an IRA or savings account, and obtaining or refinancing a home loan. Many of these institutions have articles or finance tools on their websites as well.
Your Employer or 401(k) Provider
You don’t have to work at a financial institution to have access to a financial professional at work. Many companies have in-house benefits administrators who can help explain your choices when it comes to investing for retirement in a company-sponsored 401k plan. Even if your company doesn’t have someone on staff to answer those questions, you still have access to the 401k provider, who has financial professionals dedicated to your company’s 401k plan and can help you navigate the investment process.
Pro Bono Financial Planning Services
Financial experts understand the need and the benefits of providing their services free to underserved communities. This is also a great option for older adults, who may be on a limited income to get financial advice.
If you fit the criteria, you may qualify for free professional advice from one of the following organizations:
Consumer Financial Protection Bureau
The Consumer Financial Protection Bureau (CFPB) is a U.S. government agency committed to ensuring you are treated fairly by banks, lenders, and other financial institutions.Not only does the CFPB provide oversight of the financial industry, but it also provides the public with access to a counselor to discuss housing needs, for example. It also offers articles and other resources on an array of financial topics, such as:
- Buying a house
- Planning for retirement
- Credit card debt
- Collection accounts
- Student loans and paying for college
- Filing taxes
- Bank accounts and services
- Credit scores
Your Online Brokerage or Robo-Advisor
The online brokerage and robo-advisor industries are incredibly competitive. In an effort to retain existing customers and attract new ones, top companies have built robust educational platforms. These platforms have a wealth of free educational content that comes in the form of blog posts, webinars, live events, videos, frequently asked questions (FAQ) sections, and how-to articles.
As part of our extensive research into helping readers find the best robo-advisors, our comprehensive methodology gave extra credit to companies that offer access to a licensed financial professional at no extra cost.
Steps Needed to Get Free Professional Advice
Step 1: Conduct Research to Find Financial Experts
When looking for free financial advice online, you are certain to find many sources of information; however, it may not all be from a financial professional. Make sure to use trusted websites and organizations and look specifically at individual credentials before implementing advice.
Step 2: Create a List of Assets and Debt
When you meet with a financial professional, you want to have everything organized and readily available so they can properly assess your financial situation. Depending on the type of planning you are doing, in addition to a list of assets and debts, you may also want to have information regarding life insurance, trusts, and your will or power of attorney (POA).
Step 3: Check Your Social Security Earnings Record
Make sure to log in to your Social Security account to verify that the records are updating properly each year. You can also keep track of earnings to know what your retirement benefit will be, and at which level it is most advantageous for you to start collecting Social Security income.
Step 4: Check Your Credit Score and Credit Report
You will want to check your credit score and report at least yearly to ensure that nothing fraudulent has been reported, make sure old or inactive accounts have been taken off, and see if there are any collection accounts or delinquent accounts. If so, get those paid up and up to date.
Step 5: Make Sure Your Advisor is Qualified and Registered
When you are getting financial advice, it is important to make sure that the person advising you is qualified and has the proper education and financial certifications.
You want to look for one of the following designations:
- Master of Business Administration (MBA)
- Certified Financial Planner (CFP)
- Certified Public Accountant (CPA)
- Chartered Financial Consultant (ChFC)
- Chartered Financial Analyst (CFA)
- Chartered Investment Counselor (CIC)
- Retirement Income Certified Professional (RICP)
- Certified Management Accountant (CMA)
- Accredited Investment Fiduciary (AIF)
- Chartered Alternative Investment Analyst (CAIA)
How a Financial Advisor Helps
Financial advisors provide a plethora of knowledge when it comes to investing, saving, planning for retirement, managing an inheritance, buying real estate, managing finances during a divorce, paying for college, and more. Professional financial advisors have formal education in the areas of money management, finance, and investing and must take courses or pass a test to become certified. Their knowledge of the industry goes far beyond the beginner level of information that you will find for free.
Is it Worth Paying for Financial Advice?
There are many complex situations that may necessitate that you pay for financial advice, such as estate planning, going through a divorce, or setting up a business contract, for example. Free resources are great for basic knowledge on a subject, and can really help you understand the process. However, when it comes to dealing with large amounts of money or legally binding contracts, you want to make sure that your financial interests are being covered, and a paid financial advisor can assist with that.
Where Can I Get Free Financial Advice for Debt?
If you are feeling overwhelmed with your credit cards, mortgage, or other debt, a good place to start is with the lender. Often, the bank or credit card company can work with you to help you get back on track if you are behind on payments or had a situation arise, such as an accident or job loss, that puts you behind temporarily. Another option is to contact the National Foundation of Credit Counseling, which offers free help for getting rid of debt and other financial situations. The Federal Trade Commission also has a very informative website to give you basic knowledge on how to deal with debt.
Do I Need a Financial Advisor If I Don't Have Much Money?
It can be hard to know if you need a financial advisor or if you can handle your financial matters on your own, especially if you don’t have that much money to begin with. The need for professional financial advice truly depends upon your unique situation. If your situation involves complex tax, estate planning, or legal issues, you should consult with a professional. If you just need basic information on budgeting or starting to save, you may be able to get things started on your own.
What Is the Difference Between a Financial Planner and a Financial Advisor?
A financial planner is a specific type of financial advisor, as the term financial advisor is an all-encompassing term used to describe several types of financial professionals.
- A financial planner is a professional who assists people and organizations in developing a plan to achieve long-term financial objectives.
- A financial advisor is a specialist who offers knowledge for clients' financial investments and personal decision-making and covers a wide range of professionals, such as brokers, money managers, insurance brokers, and bankers.
What Is the Difference Between an Accountant and a Financial Advisor?
An accountant is a very specific type of financial advisor, only focusing on the auditing, accounting analysis, and tax implications of a financial situation. In the more general sense of the term, a financial advisor will advise clients on investing and estate planning, or give a more comprehensive financial overview of a situation, while an accountant will focus on tax issues. So whether you need an accountant or a financial advisor depends on the type of financial situation that you need help with.
If you're focused on future-proofing your finances, there are more resources here to help protect your assets.
The Bottom Line
Consuming as much free financial advice as you can find is always a good idea to give yourself more knowledge on the subject matter. However, free financial information will only be able to take you so far. Complicated situations, such as estate planning, business filings, or tax issues, definitely merit advice from a paid professional. In fact, the financial benefits that you gain could far outweigh the costs associated with hiring a financial professional.
