Internet Use Doesn't Make You An Expert...

In the internet age, many people quite rightly gather information on a topic of immediate interest as part of a decision making process. This is great!

What often happens next is that after undertaking some research and gathering some knowledge you may feel sufficiently enlightened on the subject matter to go right ahead and make that decision on the basis of the knowledge you have now garnered. This is also great!

There is however a danger that the information and knowledge you have collected is not actually detailed enough or substantial enough for the 'right' decision to be made.

There are many areas where if the wrong decision is made it doesn't really matter too much, other areas where it would cause a bit of an issue and some where the consequences of a poor decision could be disastrous.

Financial Services is one of these areas.

You see, whatever you do for a living; Doctor, Firefighter, Lawyer, Telephone Engineer (the list is endless but you get the picture) - you have probably received substantial training both before and during the job and if I (your humble author) were to attempt to do your job for a day either from my current ignorant position or after a day or 2 of internet research, chances are I would screw it up and depending on the job in question the consequences could range from inconvenience to fatality.

Financial Advisers are pretty qualified and experienced at helping people make correct financial decisions. Even the humblest 'Insurance-only' adviser will generally hold qualifications such as CF1, which involves some 60 hours study and the passing of a 2 hour exam. Mortgage Advisers will also hold CF6 or similar, which is another 70 hours study and exam.

An IFA will need at least CF1 to CF5 or equivalent which is a total of 280 hours of study and 5 exams, although most also hold CF6 and an increasing number either hold or are working towards attaining Diploma status which requires a minimum further 400 hours of study across 4 additional exams.

In addition to all of the hours of study and exams detailed above, all authorised advisers are required to accumulate a further 56 hours of 'Continuous Professional Development' each year to ensure they stay on top of their game - this is in addition to actually doing the job every day.

The amazing thing is the number of people who decide that they know what financial products they want or need and through a little or a lot of online research find it and buy it.

So, unless your knowledge and experience in financial matters is at least as robust as that of a professional, wouldn't it be insane to make such important and potentially life-changing decisions yourself?