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Orange on Green: The Difference between Value and Price

Orange on Green: The Difference between Value and Price
After a revelation during a recent shopping trip, our financial columnist shares how you can have your advice and use it too — without any upfront costs. Find out how with just a little bit of homework.


I am not a big shopper. In fact, I try to avoid places like the mall like the plague. The holidays do not make it easy for me to remain steadfast in my evasion, and I recently took back a few items that were given to me during the holidays. I returned one item back to a department store at Kenwood Towne Centre and tried to find a nice dress shirt to replace the returned item.

 

The prices seemed expensive, so I drove down to a less affluent store in Dillonvale and found the same exact shirt for 50 percent less. Of course, I bought the shirt there instead of at the mall. But other people will buy the shirt for double the price.

 

This got me thinking: People spend thousands of dollars in planning fees to financial advisers when the same advice is available without a fee. Spending money upfront for the advice doesn't make the advice better than the guidance offered by financial advisers who do not charge a fee. As long as they are professional advisers, both provide objective advice, even if you don't pay them.

 

We have a tendency to think that the more we pay, the better product we are get. I have heard the maintenance on BMWs is expensive and they are not good long-term investments, but they are regarded as one of the higher end cars, including when it comes to the price tag. At the same time, I have heard great things about the values for Hyundais, yet they are considerably cheaper than their BMW counterpart. Some would say the difference between the two cars is drastic, it's a BMW, not a Hyundai. The differences is more of a perception and the status appearance that comes with driving a BMW.

 

The fact is that there are good financial advisers who either charge a minimal fee or no fee at all to provide good financial advice and do it without a requirement to buy products from them. They are hard to find, but they do exist. The good ones understand that it is not about immediate gratification, but about educating and helping people deal with a world they frankly don't understand. The more you pay for financial advice does not necessarily determine the quality you receive. It might just be the more you pay for that advice allows the one you are paying the ability to buy that shirt at the mall rather than the Dillonvale department store.

 

Do your homework. Find out the adviser's intentions, and ask how and why they charge or don't charge and how they get paid. Find out their motivation and passion. Is it for helping you more than helping them or the other way around? In doing this minimal research, you take control and set yourself up to get more bang for your buck.

 

Registered Representative and Financial Advisor of Park Avenue Securities, LLC (PAS). Securities products/services and advisory services offered through PAS, a registered broker-dealer and investment advisor. Financial Representative, The Guardian Life Insurance Company of America (Guardian), New York, NY. PAS is an indirect wholly owned subsidiary of Guardian. Lifetime Financial Growth, LLC is not an affiliate or subsidiary of PAS or Guardian. Orange Financial, LLC and Lifetime Financial Growth Company are not affiliates or subsidiaries of PAS or Guardian.

 

PAS is a member FINRA/SIPC

Tom And Brad Cunningham -

Tom and Brad Cunningham are Cincy Chic's financial columnists, and they are the co-founders of Orangefinancial. If you want to share your comments or inquire for more information, e-mail them at This e-mail address is being protected from spambots. You need JavaScript enabled to view it and This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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