What is "Free" Financial Information Really Worth?

Historically, the lack of transparency in the financial services industry forced investors to work with stockbrokers, who marketed themselves as "financial advisors", to gain access to the two components vital to investing: information and markets. The internet, however, rendered immediate access to volumes of market information, a free commodity and discount brokers, such as Charles Schwab and E-Trade, gave the public more access to markets and products than any other large broker for a fraction of the cost. Suddenly, those who market themselves as financial advisors are scrambling to restore their value proposition.

In the late 1990s, the financial services industry responded to the commoditization of their primary roles by providing "financial planning". The effort to restore the value that they once brought to Main Street was hijacked by insurance companies and boutique investment firms who saw "financial planning" as a perfect opportunity to continue peddling their products. Savvy investors were quick to pull the curtain back on the proverbial wizard and the battle between Main Street and Wall Street was on and the message from investors was clear: Bring us value, not products!

While the war cries from investors continue to echo throughout the financial world, many advisors are still operating with the old-school mentality of increase the rate of return with the latest and greatest investments and the rest will fall into place. It is precisely these advisors who have run off the cliff. The question becomes: do you want to be there when your advisor realizes his Wile E. Coyote moment and plunges to the ground with a fading whistle, loud thump and a cloud of dust?

While the financial services industry deserves some of the bad press it gets, there are advisors out there who "get it" and realize that providing unique, discernable value to the public goes beyond the realm of simply using products to fulfill needs. It is something that Main Street cannot do on its own. With so much information and with so many products readily available, Main Street is missing the "filter" that provides "context", the key ingredient in making the right financial decision. A former mentor of mine would preach, "No truth exists without context." For the financial services industry, this sentiment rings especially true.

Context, or the way in which we evaluate what advice is appropriate for our situation, is only the first step.  It's a step that industry as a whole has not taken.  Ultimately, what the client must have on their journey to financial independence is wisdom, which is where information, context and experience converge.  When you find wisdom, the confidence in your financial plan increases immeasurably.

If you're questioning the value that your current advisor brings to the table or if you're growing increasingly frustrated with navigating the financial world yourself, it probably boils down to the fact that your advisor or the industry as a whole is much more concerned with providing you with more products rather than real solutions. You deserve real customized strategies that coordinate and integrate with all your other professionals instead of competing against each other. These solutions certainly do not take the shape of more mutual funds or insurance policies.

So, demand solutions not products! Demand context not information! Demand wisdom and not a sales pitch! The financial services industry generally does not, will not or cannot provide these things. So remember, confidence in your plan does not exist as a search result on Google or in the afternoonmarket reports on CNBC.

Confidence will only come with the right the combination of strategies, context and solutions that only a trusted advisor can provide.