Many Spanish savers do not learn or, if they do, it takes very little time to forget the lessons learned. This is the conclusion to which I have come to see the following article published in El Economista:
And that's not the worst. In my opinion, the most worrying thing is what has increased in the last year. As we can read in the news:
“87% of Spanish savers turned mainly to their bank office last year in search of advice for their investments, compared to 54% who did so in 2011, according to a demographic study prepared by the Institute of Stock Market Studies (IEB) and Inversis. "
In this article I will explain the reasons why I feel disappointed with all these savers with a critique of banking financial advice and I will recommend a couple of alternatives for those savers who still trust their banks to manage their money.
What else needs to happen?
As they rightly comment on Gurublog:
“After the preferred, subordinate and other crap, 87% still continue to seek advice in their bank office? Sometimes I think we deserve what happens to us. "
Totally agree. Either the study carried out is wrong, or what is wrong is society. People should understand that banks do not advise on what is best for the customer, but try to sneak what is best for the banks.
Banking financial advice is NOT free
The main reason why many savers decide to seek advice from the bank when managing their money is that this advice is supposedly free. However, this is far from true. When you allow yourself to be advised and purchase the products recommended by your bank, such as preferred, convertible, etc. In the best of cases, he will earn little money or he will stay the same, at worst he will lose his shirt, as happened with the citizens affected by the purchase of preferentials.
Alternatives to banking financial advice
In my opinion, another of the main reasons why Spaniards go to their bank in search of financial advice may be due to not knowing alternatives. I believe that the two alternatives that could be better received are financial training and financial advice through EAFIs.
On the one hand, there is financial training, that is, learning to make savings and investment decisions for yourself. There are a large number of books, courses and blogs (this one, without going any further) that can help you learn to manage savings efficiently.
On the other hand, there are the “Independent Financial Advisory Companies” better known as “EAFIs”. The biggest drawback to going to an independent financial advisor is that they charge for their services. However, it is usually a fairly low fee, around 1% per year of the total managed, so this percentage is usually recovered more than if we choose a decent advisor.