Loved ones don’t always offer sound advice
January 12, 2008
When it comes to getting financial advice many people go to a trained and experienced professional in order to get advice relating to different areas of finance. However, many others decide to take the advice of friends and family members, and although loved ones may have the best of intentions a recent survey shows that it is not always the best idea in the world to expect friends and family members to offer advice on something as important and potentially complicated as finances.
A survey was recently carried out by Birmingham Midshires, and according to the results of the survey around 20% on consumers have been given poor, unsound financial advice from loved ones in the past. This is apparently resulted in both emotional problems and relationship problems, as well as financial losses. The survey involved two thousand respondents who were questioned about taking financial advice from friends and family members.
One official involved in the study 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 aim of the study was to highlight the problems associated with taking advice from friends and family member who actually know little or nothing about financial matters. Consumers looking for advice on their finances are advised to go through an expert financial adviser, but perhaps have a family member sitting in just for clarification and opinion.
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