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Research Financial Education Providers

When looking for a conflict-free financial education provider, it is important to carefully research the affiliations and roles of the education provider firm, its company principals, and the instructors facilitating the classes.

Providing financial education, in its purest form, involves imparting knowledge and information with complete objectivity - absent of any conflicts of interest by the firm, its principals, or the instructors providing the education. (For example, instructors whom are certified financial professionals with their own client practice or involved with another financial planning firm would not be considered a conflict-free financial education provider.)

Look Closely at the Instructors

Many financial education companies claim their organization does not sell financial products, services, or advice and that their firm does not have affiliations with any other firms that do. However, they do not mention that their instructors, whom are independent contractors or third-party providers, do sell financial services and advice as independent financial planners or as part of another financial planning firm.

There are still other financial education providers that have a planner network whereby the instructors teach classes and in return receive client referrals of interested students who attend classes. These financial professionals (generally they must be certified) have access to an organization's employee base with the ultimate goal of building their practice.

Moreover, many financial education firms engage unpaid or paid professionals who actively work in the accounting or legal industries whose ultimate purpose is to expand their client base and sell products or advisory services.

Research Company Principals

There are some financial education companies whose principal(s) associates are also principals in registered investment advisory firms that collect fees and commissions from selling financial products and advisory services. These firms generally form a separate company from which to provide financial education. However, clearly these firms have existing and on-going conflicts of interest. To uncover this information, type in the principals' names into several internet search engines to see if affiliations with other firms appear.

Ask About Fees

There is typically a fee for truly conflict-free education, since providing education is the only source of revenue for the financial education provider. Keep in mind that free seminars and classes are typically used as 'bait' to either get in front of groups of people or meet with people one-on-one at the end of a seminar.

Uncover Hidden Agendas

In looking for a financial education provider with no hidden conflicts of interest, be aware that there is great misuse of certain words used to describe the financial education being provided. The following words are often misrepresented:

• Education only
• Independent
• Objective
• Unbiased

Don't take an organization's mission statement at face value. Look for hidden agendas. Delve deeper than the home page of a company's website. For example, click on any buttons at the bottom of various web pages for network links; read any terms and conditions as well as disclaimers provided that may offer further insight and information on existing and/or ongoing relationships.