MANY suffer from information overload these days. Where can you get the best free advice?

Gen Ys — Justine Davies

FIRSTLY, we need to make the distinction between information and advice.

Information is simply data: What is the official interest rate? Did the share market rise or fall today?

Advice is the interpretation of data: Is now a good time to lock in a fixed-rate home loan or buy shares? There’s plenty of freely available information. Free advice, though? Most of it’s not worth having.

As far as financial information, there are some top websites out there. The Moneysmart website has great general information. So does the Reserve Bank website (there are some terrific speech transcripts available). The Productivity Commission (pc.gov.au) releases detailed research on current projects and the ACCC’s Scamwatch website has good info about the various scams that are popular.

Information is only useful, though, if you know how to apply it, which leads us to advice.

There is very little free advice that is worth having. Centrelink runs a Financial Information Service via seminars, one-on-one appointments or telephone counselling. If you are in financial difficulty, you can access the free, independent services of a financial counsellor. Beyond that, good quality advice specific to your situation will cost money.

So forget about getting something for free and instead concentrate on getting the best value for money. Increase your knowledge via freely available information so that you can make the most of the advice that you’re given.

Shortlist websites and columns that provide you with good information. Spend a year or two learning, then pay for professional advice that’s tailored to your situation.

Justine Davies is a finance author who blogs on yourmoney.com.au. Her latest book is Money for Nothing .

Gen Xs — Bruce Brammall

THE best advice is rarely free. And free advice is rarely the best. To quote Tom Hanks in Apollo 13: Houston, we have a problem.

The best advice is tailored to your situation. And that’s generally going to involve a financial adviser’s fee. Advisers don’t work for free, but are most likely able to help you with your individual issues.

Free advice has a price too — your time. But, assuming this is how you want to spend your time (which can be hugely rewarding), then here’s where you’ll find the best advice.

Read until your brain hurts. Join a library. Get a book in your hand. Books tackle subjects in depth. If you want to know more about shares, superannuation, property investment, insurance. anything. your local library will have dozens of books.

Then there’s the internet. It’s not free, but it’s pretty cheap. The net is a minefield in that it is unending and largely unedited. There’s some great information available, but it can be hard to sort through what does and what doesn’t have a sales pitch involved. The websites for ASIC, the ATO, the Financial Planning Association and various investor-based websites have some great general advice.Sign up for some bloggers. The better ones don’t sell in their writing.

Free seminars? Be VERY wary here. Most advertised seminars are usually infomercials for high-priced and higher-commissioned products. The worst is the property industry.

Do-it-yourselfers should read until they have information overload. If reading finance isn’t your thing, pay someone to help you improve your situation.

Bruce Brammall is the author of Debt Man Walking (debtman.com.au) and principal adviser with Castellan Financial Consulting.

Boomers — Mark Bouris

BABY Boomers know that nothing in life is free. Everything comes with a price, especially the wisdom to give good advice.

However, even some of the free financial information and insights that come with the superannuation mail-outs is worth reading if you have the time and know what to look for. And those who are doing enough business with their broker can benefit from a gratis adviser who can be useful for tips on stocks.

There are some good financial blogs online, where highly credentialled people discuss investment strategies and the best places to buy investment property. To avoid the shonks, be aware that the genuinely good advice is around what class of stocks are good to buy, rather than which stocks as such.

But the best advice usually comes from a Boomer’s elders, even if it is in the form of truisms and maxims.

One of my favourites — which I got from my parents — is that a penny saved is a penny earned. In other words, shaving costs off your overheads has the effect as earning the same amount as income. I run my businesses with this maxim in mind, and it’s a very effective way of looking at a company’s performance when considering investing: Do they control their costs?

Boomers know that some of the old advice from their superiors was actually pretty good, for example, the yielder approach to buying stocks, which holds that on the same date every year you buy the 10 highest-yielding stocks on the ASX, having sold your previous portfolio. Those who use it claim they outperform the stock-pickers. Free advice is worth hearing from someone trustworthy.

Mark Bouris is executive chairman of wealth management and advice firm Yellow Brick Road.

Retirees — Kerrin Falconer

RETIREES are in the best possible situation of all the generations to access information and advice free of cost.

There are two reasons for this. Firstly, because they have that most precious commodity, which the other generations would give their eye teeth for — time.

Secondly, they have years of experience in dealing with people and situations. This should give them a head start in working out if the advice is appropriate for them and their situation and hopefully away from the scams and con artists.

You only get what you pay for and if the advice is free it can only always be general in nature and not tailored to your specific needs and goals.

Here are some websites to get you started before seeking more professional advice:

* ato.gov.au is a mine of information from tax to superannuation and everything in between.

* asic.gov.au can be handy for self-managed super fund trustees in regards to compliance.

* moneysmart.gov.au is part of ASIC’s website and has downloadable publications on a variety of finance related topics.

* fpa.asn.au offers a facility to ask an expert a general financial planning question and have it answered for free.

On the legal front, most states have legal aid facilities for those who are eligible to access it. Legal Aid offices and websites also have plenty of publications on such things as boundaries, fences and consumer rights.

Investment and super legislation changes frequently. Those who do it themselves can make costly errors. So while it is good to read, consult a professional when you need to.

Oh, and be prepared to pay for it.

Kerrin Falconer is a finance writer with 15 years of financial planning experience.