The Secret's Out - Financial Educators Revealed

The Secret's Out - Financial Educators Revealed Author: Tania Caldwell Not many have heard of this obscure team of people. They can be an army that is growing at a phenomenal rate in this current financial turmoil. They have been spreading throughout the US for over 30 years, Spain for 10 years, and have recently established themselves within the UK. Financial Educators are the fastest growing financial services team within the UK. When most Financial Advisors are finding themselves out of work, Financial Educators are creating work! Within the next six to 10 years, they shall change the face regarding the UK financial services industry, just as they have within the US.

So what is so good about Financial Educators? FEs are very similar to Financial Advisors, however, there exists subtle and significant differences. One regarding the key differences is that their core service is to teach simple financial principles. The aim is to empower the client with knowledge such that they make better financial decisions. The underlying philosophy is that curriculum is the solution and preventative measure to financial difficulty. Generally, the facts taught is simple but effective; simple such that anyone can understand and apply it, and effective such that it creates an unique impact on the client's financial situation.

Many people know that a financial advisor shall improve their financial situation. In fact, what they need is to do the basics, and be good at the basics. A Financial Educator FE shall give the basics with little or no expense. For more advanced financial goals, a financial advisor FA or an experienced FE shall be can help. Achieving financial security is very simple, and many people shall do well to speak to a FE.

By empowering the client to make better financial decisions, the client takes manage and responsibility for their own finances. Thus, an interdependent relationship is established between the FE and the client; where the client instructs the FE on what they want. This is very different from the interaction between a client and FA. In this relationship, the client is dependent on the FA. This is why, whether you can be going to talk to an FE, it is important that a good not just any Financial Advisor is consulted.

Like Financial Advisors, FEs give services for example financial plans, and products for example investment packages, insurances, and mortgages. However, FEs not ever usually charge for their services. Their income is purely commission based, which means that clients get similar services or products and many times better service and products for next to no cost. I hear you say, Well if they depend only on commission, they should compression the client into buying a product. Most FEs are independent agents of a larger organisation.

When they begin within the field, they can be encouraged to be part-time and earn an more income by working another job. This takes the compression off them to sell, and be more focused on teaching. As they develop their clientele, eventually their commission based income exceeds the income from their other job, to the spot where they no detailed need the job. Generally speaking, a FE shall be practising what they preach. This is due to the fact that most FE organisations shall encourage their members to practice the principles first and then teach clients.

So you can be assured that what they teach works!My recommendation is to always speak to a Financial Educator, and for more complex and advanced financial goals, speak to a Financial Advisor.