Understanding the difference between advice and support

In the financial services world, there's an important distinction between advice and support. Understanding this difference helps you know what kind of help you need and who can appropriately provide it.

Financial advice involves making specific recommendations about what you should do with your money. It typically requires professional licensing, such as being a registered investment advisor or certified financial planner. Advice-givers have legal and ethical obligations to act in your interest.

Financial support, on the other hand, involves helping you execute decisions you've already made, organizing information, and ensuring your financial activities are well-documented and properly structured. Support doesn't involve telling you what to do—it involves helping you do what you've decided.

Both services are valuable, but they serve different needs. If you need help deciding whether to invest in stocks or bonds, you need advice from a licensed professional. If you need help organizing your existing investments and tracking your portfolio, you might need support.

The line between advice and support can sometimes seem blurry. A good rule of thumb: if someone is telling you what financial decisions to make, that's advice. If they're helping you implement and organize decisions you've made (perhaps with guidance from an advisor), that's support.

When seeking financial help, be clear about what you need. Ask potential providers directly: 'Do you provide financial advice, or do you provide support for financial activities?' Their answer will help you determine if they're the right fit for your needs.