Where do you get your investing advice?

I just found out about a survey that caught my eye from Sharebuilder. They surveyed a bunch of ‘younger investors’ and found that they seek stock investing advice from different sources than their parents. According to their data…

“While younger investors are willing to invest more in the market, few said they’re relying on brokers, financial advisors or planners for advice. Instead, the survey showed that younger investors now rely more on financial websites and blogs (49 percent) and financial print publications (39 percent) than financial planners (35 percent) or brokers (18 percent) for investing advice. Older investors are also relying on financial websites and blogs (47 percent) and financial print publications (41 percent) slightly more than planners (39 percent) and brokers (36 percent).”

I am not exactly sure how those numbers work out – as they don’t add up to 100%, but I think the clear and obvious take-away is that times are changing and many investors are doing things differently than they did 20 years ago.

It may not be surprising to see the younger generation taking some of these different approaches, but I was surprised to see this…

“Almost half, 49% of investors ages 40 – 65 have reduced or eliminated their reliance on financial professionals”

While I am a do-it-yourself investor, I still think that many people would be well-suited hiring a competent, trustworthy, financial planner who shares their values. If you are planning on going it on your own, my two favorite online brokers (where I have accounts) are Zecco and Sharebuilder.

Are you a DIY investor? Do you plan on hiring a financial advisor in the future?













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11 Comments
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  1. –first–
    I think people go for advice to those they trust.
    Personally, I always feel that a “professional” has ulterior motives when dealing with me. This was confirmed when the last financial planner I had moved very quickly to sign me up for all sorts of insurance, which I never even voiced a desire to have!

    The blogging community is exactly that – a community. People feel that they can trust the members, and take advice appropriately. I know I definitely fit into that description!!!

  2. My dad has been investing for years so I go to him. He is an accountant and has a business so he’s savvy about those things. I also have a financial advisor :) I’m 25…and I read blogs too.

  3. I get mine from Dave Ramsey. His advice is pretty sound. Also from crown.org and the late Larry Burkett, and blogs of course.

  4. I really appreciate the article. Lot’s of statistics…I love the saying, “87% of all statistics are made up.” :) I agree fully with your recommendation on getting financial advice from like-minded planners. If you are both headed in the same direction, you are less likely to veer off into the proverbial ditch!
    Thanks again,
    Randy Redd rreddink.blogspot.com

  5. I would say that I’m more of a DIY investor as well. Although I invest very minimal amounts in individual stocks, I also have accounts at Zecco and Sharebuilder. The rest of my money is in index funds.

    I’m not sure if I’d hire a financial advisor in the future, since I’ve taken financial planning courses and have considered becoming an advisor myself. Maybe if my situation changes drastically, then I may seek out an advisor. But I think most people would agree that nobody cares more about your money than you do. As such, I try to educate myself on financial matters.

    If you’re planning on investing in stocks yourself, I’d suggest reading Benjamin Graham’s classic book, “The Intelligent Investor”. That’ll give you a solid foundation to work with.

  6. Would I hire an investment advisor? No! Great investing is easy. Would I hire a tax advisor? Yes the tax code is too big for me to master.

  7. I just signed up for Soundmind Investing (website and print newsletter). Not only do they share my values, but they offer a vast library of knowledge. Results remain to be seen, but I am extremely impressed with the product thus far. I highly recommend checking them out if you are looking for sound advice fro
    a Christian perspective.

    Any others members of the newsletter?

  8. I am definitely a DIY investor. The vast majority of mutual funds don’t beat the S&P 500. Why go to an “expert” that isn’t very good at what they do.

  9. I have had this conversation with others before, and I think most people should have some type of advisor. How that relationship is formed and the type of advisor should and does vary person to person.

    There are intangibles that an advisor can bring to the relationship, which may include far more experience and more importantly they are there to talk you off the ledge when the market loses 130 points and you sell everything off.

    Many advisors also can help with cash flow issues and tax issues. While this may not matter to those reading a PF blog, it could be useful to the 60% of people carrying credit card debt every month.

    I even wrote a post defending the profession if Bob doesn’t mind:

    http://www.myjourneytomillions.com/articles/hate-financial-planners-defending-financial-advisors/

  10. I am also a DIY investor. It seems like so many of the “professionals” get it so wrong, the hard part is picking them!! I use common sense, low risk investments and listen to my parents. Safe, but at least I know my money will be there at the end of the day.

  11. Allison

    I’ve gotten most of my personal finance advice from my mom. I always used to sigh and roll my eyes whenever she would give me a speech about saving for retirement (granted, she started giving me these around 15) but now I realized how useful her information has been to me. I’m also a “blogaholic” Along with this blog, my favorite is the blog w/ Green Sherpa (personal finance software that I use)

    http://blog.greensherpa.com/index.php/personal-finance/your-financial-map/

    I definitely recommend checking it out, it offers a lot of useful and insightful advice!

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