Differentiate Between Financial information and Financial Advice

Most people mistake financial advice for financial information. Financial advice is basically a biased version of financial information.

An individual starts out a financial plan by determining and identifying precise financial goals. After that, what the individual needs is financial information about all products in the market. He or she needs objective analysis of the all the products in a way that guides him or her to make a personal decision based of the advantages and disadvantages presented by each product.

But due to the complexity and magnitude of the financial services market, such an individual may decide to solicit for advice on how best to pursue those goals. Sampling and critically analysing benefits attached to one product over all others is not something many people are adept at doing. At that time, the advice he or she gets will therefore be determined by his or her preferences, goals and affordability. Specific products will be considered based also on the interests and personal attachments of the adviser. That now is financial advice.

The primary intent of financial advice is to first determine your needs and then to convince you to make a purchase of some specific products, as way of serving those needs.