Finance Choices
Britons reject professional advice on finances
The vast majority of Britons never seek professional advice on their finances, new research reveals.
While 60 per cent of people happily go to the doctor when concerned about their or others' health, when it comes to money problems or decisions fewer than one Briton in three heads to see an expert.
Instead, research from Alliance & Leicester finds that 16 million Britons turn to their partner for advice, another eight million look to friends while two million more go online for advice.
But by not asking experts, UK residents could be missing out.
"It?s natural that people should turn to those closest to them for general advice on life, however it is concerning that they are not turning to the experts for more serious matters such as health and major financial decisions," said Lindsey Henson, investment and protection product manager at Alliance & Leicester.
"When it comes to our finances, whilst a chat with our partners can help vent any worries and explore our plans, it cannot compare with a structured discussion with a qualified financial adviser."
Just 29 per cent of Britons look to experts when mulling over their finances, meaning more than two people in three (71 per cent) chat instead to their partners, friends, family, or just do not look for any advice at all.
One person in three of those turning to the internet for advice does so as it is less embarrassing than going to see someone.
But the generic advice found online, while useful and carrying guaranteed anonymity, is hardly a perfect solution.
"While the internet can be used as a great source of information, it is no substitute for getting advice that is tailored to your individual situation and needs," Ms Henson concluded.
While 60 per cent of people happily go to the doctor when concerned about their or others' health, when it comes to money problems or decisions fewer than one Briton in three heads to see an expert.
Instead, research from Alliance & Leicester finds that 16 million Britons turn to their partner for advice, another eight million look to friends while two million more go online for advice.
But by not asking experts, UK residents could be missing out.
"It?s natural that people should turn to those closest to them for general advice on life, however it is concerning that they are not turning to the experts for more serious matters such as health and major financial decisions," said Lindsey Henson, investment and protection product manager at Alliance & Leicester.
"When it comes to our finances, whilst a chat with our partners can help vent any worries and explore our plans, it cannot compare with a structured discussion with a qualified financial adviser."
Just 29 per cent of Britons look to experts when mulling over their finances, meaning more than two people in three (71 per cent) chat instead to their partners, friends, family, or just do not look for any advice at all.
One person in three of those turning to the internet for advice does so as it is less embarrassing than going to see someone.
But the generic advice found online, while useful and carrying guaranteed anonymity, is hardly a perfect solution.
"While the internet can be used as a great source of information, it is no substitute for getting advice that is tailored to your individual situation and needs," Ms Henson concluded.
posted by Bruce Wayne at 10:38 AM
Britons reject professional advice on finances
7 Comments:
That's what I come here for :-D Aren't you guys experts?
We have a CPA who works out of his home. He's an elderly gentleman and used to work in a bank trust department. What I like about him is that he's old enough to have seen market trends and people's behavior so he can spot pitfalls.
While I don't use him to manage our money, I won't make a financial move without consulting him first. He takes into account the family and the financial picture. Very wise man.
Don't know what I will do when he passes.
This is a good point Cresta. People can get a lot of good general advice here and other places, but sometimes it makes sense to consult someone who knows your individual situation really well.
If I used someone, it would be a fee only planner.
I did at one time, long ago, but found that they try to sell me inappropriate financial products and give me worthless advice. So, now I don't, because they don't have anything of value to offer me, and I probably know as much as they do, at least in the areas that concern me. If I needed advice in an area that I know nothing about, then yes, I would consult a professional in that area first, and then attempt to educate myself to the point I don't need him/her any more.
And as far as going to the doctor, I do the same thing as much as I'm able. I educate myself on the topic area that concerns me. Obviously I can't prescribe myself medication or perform surgery on myself, but it has happened on occasion I knew more about something relating to my health than the doctor did.
Obviously if an individual has no inclination and/or opportunity to educate themselves to the point they can manage their own financial affairs, then they have to rely on the services and advice of a professional.
A little over 10 years ago I talked to an "expert" when I wanted to start investing for my childs college education. It was going to cost me my hard earned money for his "expertise" and to invest in the investments that he recommended.
On the way home from his office I began buying reading material and have educated myself on wise investing and I do not pay anything for it other than the cost of a couple of books and magazines.
I would have paid that guy thousands of dollars over the last 10 years. That money is now making money for me.
Besides my CPA that does my taxes, and occassionaly speaking with my "IRA guy", I really dont talk with anyone. Last year, I was talking to one of the engineers I work with about this, and he mentioned that he spent $1000 meeting with one of these advisors. While I thought that was very expensive, he said it was one of the better investments he's made. The educational value alone was worth it, according to him.
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