Using the Internet to get advice on managing your personal finances can be convenient, cost-effective--and confusing.
That's what Bruce Glasscock, a 45-year-old Modesto pharmacist, discovered when he signed up for three Web-based services that offer financial planning advice: Morningstar, Financial Engines and the Motley Fool.
Glasscock, who wanted guidance on picking mutual funds for his retirement, was able to do his research in the comfort of his own home for a fraction of what a financial planner would have charged. But what he didn't expect was that each of the services would give him different--and often conflicting--advice.
One site touts buying individual company stocks; another says mutual funds are the best way to go.
One recommends Janus funds--another does not.
An investment calculator on one site says he'll be rich at retirement, while another predicts he'll just scrape by.
Glasscock says he's confused to the point of paralysis.
"Which advice service do you go with?" asks Glasscock, a married father of two. "We don't have the kind of time to make a career out of this. I just want to know if I am doing the right thing."
He isn't alone. Faced with an explosion of financial information on the Web, consumers must be prepared to do some homework to make sure they're getting accurate advice that's suited to their needs.
Here are some tips for finding your way through the online maze:
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Narrow the Field
Lynn O'Shaughnessy, author of "The Investing Bible" (Hungry Minds Press, 2001), said investors should limit themselves to well-known sites sponsored by reputable companies. All three sites Glasscock uses, as well as sites sponsored by big mutual fund companies such as Vanguard, Fidelity and T. Rowe Price, are good options. She also likes sites sponsored by journalistic organizations such as CNBC, Smart Money and the Los Angeles Times.
Consumers should avoid sites sponsored by unfamiliar companies, and particularly those that tout individual stocks that are "guaranteed" to post huge profits, she said.
"If you stray too far off the path, you can get snagged by sites that tout particular stocks only because some promoter has paid them to do so," O'Shaughnessy said. "Why wander into the jungle? You never know what's going to bite you."
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Determine Your Needs
Some sites offer a wide range of financial advice, from how to buy a house or car to strategies for retirement savings. Others concentrate solely on investments.
