4 Sources Most Investors Consult for Money Tips

Planning your financial future is a daunting task. Making the right investment choices can spell the difference between success and failure.

So, many of us look to expert sources of advice before placing our bets in the stock market. Recently, the FINRA Investor Education Foundation poured over data from a 2021 survey it conducted of 2,824 U.S. adults with investments outside of retirement accounts.

FINRA used the information to tease out trends among these investors as part of a new study, “Investors in the United States: The Changing Landscape.”

The study revealed where investors turn most often when seeking advice about what to do with their money. Following are the top sources of tips that people say they rely on either a great deal or somewhat.

4. My friends, family or colleagues

Survey participants who rely on this source when deciding what to invest in: 61%

It is natural to turn to the people closest to us for guidance when making big decisions. Unfortunately, that is almost always a bad idea when it comes to investing.

Just as you wouldn’t ask your mom to diagnose what’s wrong with your car or query your uncle for medical advice, it’s usually unwise to seek the counsel of amateurs about investing.

3. Recommendations from my financial pro(s)

Survey participants who rely on this source when deciding what to invest in: 66%

Fortunately, two-thirds of the survey respondents said they often turn to investment recommendations from financial professionals who advise them personally. In most cases, this is much more likely to yield good results than relying on stock tips from family and friends.

If you need guidance, seek the wisdom of a pro. Stop by the Money Talks News Solutions Center and find a great financial adviser.

2. Business and finance articles

Survey participants who rely on this source when deciding what to invest in: 67%

Educating yourself about money matters is a great way to become a better investor. Even if you work with a financial professional, you likely will do much better if you learn the concepts and are comfortable with the language of investing.

In fact, if you put enough time and effort into learning the tricks of the trade, you might be able to skip that adviser altogether.

For more about such a DIY approach, check out “9 Tips for Sane and Successful Stock Investing.”

1. Research and tools from my brokerage or advisory firm

Survey participants who rely on this source when deciding what to invest in: 73%

Investors can choose from a wide range of financial services providers — Vanguard, Fidelity, Charles Schwab, and on and on. Almost all of them offer tools you can use when making decisions about how and where to invest your money.

Nearly three-quarters of investors say they take advantage of these tools.