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5 Pieces of Bad Financial Advice to Never Listen To

It's fairly common for people to seek financial advice from a professional. Unfortunately, not every professional is equal and sometimes you'll get advice that might be worth disregarding or you could discover later the advice did little or nothing to improve your financial health. Here's some of the warning signs that the advice you're getting may be worth walking away from:

You must act immediately

Blog 5 Pieces of Bad Financial Advice to Never Listen To

Financial advice should never have to be acted upon immediately. If someone tells you this is your only option, you should find out why there are no other options available and seek the help of another financial advisor to help you determine if there are other options. Always carefully review an investment proposal and make sure it addresses your needs and goals.

Advice does not make sense

If you've met with a financial advisor and the information they've provided you is confusing, you should seek additional information. There is little doubt that finances can be confusing but if someone is laying out a plan for you, the plan should be sensible and easy to understand. Talk to your Member Financial Representative at Oklahoma Central Credit Union and find out what financial planning options are available to meet your needs.

Advisor works solely on commission

Be wary of any financial advisor who depends solely on commissions to earn their money. In these instances, the advisor may feel they have to sell certain products (with higher commissions) to make a living. In most cases, it's highly recommended you work with a fee-only financial planner; this way their fees are not tied to specific products which typically means the advice you receive is not contingent upon what the advisor will earn if they make a sale.

Setting unrealistic expectations

If you're being told you'll get an unrealistically high rate of return, that you're going to double your money quickly or that you have little chance of losing money on an investment, walk away immediately. Anyone who is offering "pie-in-the-sky" returns is simply not telling you the truth. Stock market investments, whether they're part of your overall investment portfolio or part of your retirement account fluctuate in value and regardless of the type of investment you've chosen, has risk associated with it. Those who are completely risk adverse can put their funds in a savings account; this is the only way to ensure your money is not at risk.

One-size-fits-everyone

This is something to be wary of. A cookie cutter approach to investments is never a good idea. Investment advice should never be a one-size-fits all proposition; every investor has different financial situations, different goals and needs advice that helps them meet their goals. Twenty-somethings with $100,000 to invest and forty-somethings with $100,000 to invest need very different plans.

Working together, Oklahoma Central and GreenPath can help you create a financial plan that works for you. Working together, we'll help you develop a long-term plan to ensure you meet your spending and savings goals, learn more about your investment options and help you manage your debt. Call us today at 918-664-6000, select option 8, to speak with a Member Financial Representative.
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