1 in 5 Brits receive bad financial advice
Almost 1 in 5 Brits have received bad financial advice from their friends and family, according to research from Birmingham Midshires.As part of its Not So Average Joe campaign, the specialist mortgage provider polled more than 2,000 Brits on the consequences of taking advice from friends and family.
The study found that 16% of those polled had been given bad advice by their nearest and dearest. This figure rose to almost a quarter amongst 45 to 54 year olds and fell to 10% for 18 to 24-year olds. More than a third were given bad advice relating to investments. A significant perecentage also suffered at the hands of mortgage advice from friends and family. Bad advice was least likely to be given about pensions (10%). Tim Hague, managing director of Birmingham Midshires mortgages, said: “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 1 in 5 people questioned in our study have suffered in some way as a result of a bad piece of advice.”While the vast majority (81%) of those who have been given bad advice from friends and family suffered financially, the negative impact of bad advice is not restricted to the purse strings. Almost one in five wasted a lot of time in the process. Just over 12% admitted that their relationship with the person who gave the advice had deteriorated. A minority of those questioned (4%) lost an asset such as a house, a car or another belonging of value. Hague added: “By visiting a qualified expert in financial products, such as an independent financial adviser, you will get impartial financial advice which will help you work your way through the maze of financial products available. As a result, visiting a qualified adviser can save a lot of time in the long-run; and you can rest assured that you are making a financial decision which will be tailored to your own needs.”