Are you receiving poor financial advice from loved ones?
January 3, 2008
According to a recent report based on research carried out by Birmingham Midshires, nearly 20% of people in Britain have received poor financial advice from friends or family members, which has then resulted in them suffering financial losses and emotional problems. As part of the study over 2000 consumers were polled to ask for their opinions on taking financial advice from family and friends.
The results of the survey showed that around 16% of respondents had received poor financial advice from loved ones, with the higher levels of those receiving this poor advice in the 45-54 age group. Around 37% of respondents stated that they had been given bad advice from relations and friends with regards to investments.
Of those polled around 19% had received poor advice relating to their mortgages. It was found that the financial products about only a small percentage of people had received poor advice was pensions, with just 10% of respondents having received poor advice from loved ones in this area of finance.
One official from the Birmingham Midshires stated: “While it may appear more accessible and less time-consuming to act on the recommendations of friends and family when it comes to financial advice, rather than to seek qualified and professional advice, our study demonstrates that it really does pay to visit an expert. Almost one in five people questioned in our study have suffered in some way as a result of a bad piece of advice.”
The study was carried out as part of a campaign called ‘Not so Average Joe’, and highlights the possible dangers and consequences of taking financial and investment advice from family members and friends who actually do not know anything about financial matters.
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