What's the best source of financial advice?

[Geronimo]

I'll probably finally be buying a house this year (yes I know this should have been done well before now). I can get pretty good advice on the particulars of buying a house but I've realized I have no reliable source of more general financial and investment advice. Random internet searches seem to be a minefield of interests with something in particular to sell.

So where do people with only the most primitive grasp of basic principles of financial planning go for impartial guidance and advice? Do you have to start by reading various 'for idiots/dummies' publications before you can even intelligently seek out such advice?

Pretty stupid to be asking this question in a gaming forum I know but I find this topic incredibly dull, and in some sense it's not immediately urgent so at least by asking the colorful crowd here at poly I can maybe motivate myself to think about the answers.

So far I doubt I've suffered too badly from my indifference since I chose a pretty simple debt free student strategy but I'm no longer a student and for the first time I probably have enough savings that I will deeply regret missing some easy equity building strategies later on.

It will be interesting to see if any useful insight comes from this thread.

[Asher]

Kidicious.

[Geronimo]

Originally posted by Asher
Kidicious.

isn't kidicious more of the market for such advice rather than the supply?

unless you meant someone other than the poly poster I'm thinking of.

[MRT144]

DanS and harry tuttle.

[Zkribbler]

I go to my big brother -- a self-made multi-millionaire by the age of 40.

Advice One:
Buy a house. (Okay, I haven't done that one yet )

Advice Two:
Have six months' living expenses invested in a low-risk account which can be easily liquidated if the need arises.

Advice Three:
Have a retirement IRA. Fully fund it every year.

Advice Four:
Invest in no-load mutual funds. Choose funds which do well in both bull and bear markets. (I'm trying to remember the magazine upon which he relies It comes out with a survey in the fall sometime.)

Advice Five:
Don't buy a car with borrowed money. Rather, save up for your car. That way, you're earning interest, not paying it.

[Zkribbler]

Zkribb's Plan:
Have a mulit-millionaire for an older brother. Pray that he dies young, naming me as the main beneficiary in his will.

[Japher]

yes, just inherit the money

seriously; I find investment websites useful for such information. I like Morningstar, they have a rather active message board.

Also, I would get a few books on the matter you are most concerned with. Look for publishers or sponsers of the book with names you know relate to that industry. S&P for stock advice, HUD for housing advice, etc...

Try by doing and asking, Title companies are a good source of advice, if you can get them to talk. Or, even mortgage brokers. Tell 'em what you want and see if you can afford it. Why get a traditional loan if you are buying a fixer-upper? They'd know the best way to finance you.

---

IMO, I would try to put atleast 20% down on the house, condo, what-have-you. If you can't, get creative; buy a duplex and rent half out, etc... The Creative Investor is a good website.

ALWAYS get the place inspected by your own inspector.

Location is key, very key.

Get comps (comparisons).

[Harry Tuttle]

How old are you and what do you where do you want to be when you're fifty?

[pchang]

http://www.vanguard.com

They have an excellent education section. They also have reasonable rates for financial advice if you do decide to pay for a professional. For me, the price is very reasonable (free).

[Kontiki]

I'm the best source. If you and two friends each send me $100 a month, I can show you how to add hundreds of dollars a month to your income.

[JimmyCracksCorn]

I am a homeowner.

My advice is to move to St. John's, where a huge, century old victorian house will cost less than $100k.

I'm paying less on my mortgage here than I paid in rent on a two bedroom appt in Ontario.

[Kontiki]

Originally posted by JimmyCracksCorn
I am a homeowner.

My advice is to move to St. John's, where a huge, century old victorian house will cost less than $100k.

I'm paying less on my mortgage here than I paid in rent on a two bedroom appt in Ontario.

So am I, and I bought in Toronto.

[Zkribbler]

Originally posted by Kontiki
I'm the best source. If you and two friends each send me $100 a month, I can show you how to add hundreds of dollars a month to your income.

Wow!! The checks are in the mail!!!! Now, tell me.

[Kinjiru]

If you are going to use a pro, you need to ask a few simple questions. Many will refuse to answer, walk away from them. Any good advisor that knows their stuff will not have any problem talking about these issues.

1) How do you get paid?
- If they are on commission, then their advice might be biased.
- If they are a captured agent, meaning they can only sell certain
products then again, their advice might be biased.
- The best bet is usually someone that charges by the hour.

2) What is your current net worth?
- Don't follow the advice of someone that is broke. (see below)

3) What is your own personal financial plan?
- If they are somewhat new to the industry, then the answer
to number 2 might not be encouraging. However, if they have
a good personal plan inplace, then they might still be worth
talking to.

[Geronimo]

Originally posted by Kinjiru
If you are going to use a pro, you need to ask a few simple questions. Many will refuse to answer, walk away from them. Any good advisor that knows their stuff will not have any problem talking about these issues.

1) How do you get paid?
- If they are on commission, then their advice might be biased.
- If they are a captured agent, meaning they can only sell certain
products then again, their advice might be biased.
- The best bet is usually someone that charges by the hour.

2) What is your current net worth?
- Don't follow the advice of someone that is broke. (see below)

3) What is your own personal financial plan?
- If they are somewhat new to the industry, then the answer
to number 2 might not be encouraging. However, if they have
a good personal plan inplace, then they might still be worth
talking to.

hrmm for 3) how does a noob customer know if the plan described is a good personal plan?