7 minutes ago
• It’s not a secret that there’s a kind of black hole when someone talks about investing in the #stockmarket , many people can feel isolated, taking a passive position, assuming that’s only for #WallStreet sharks. .
. • The #financial system has a funnel design, the width for a few (1%) and narrow for the others (99%). Most of this population is not even aware of what goes on behind the scenes in their personal finances. At the end of the day, financial education doesn’t belong to the school program. (And there is a reason). .
. • The simple fact of sitting with a financial advisor involve costs. Back to the base that 99% of the population doesn’t have financial education, the only option is to trust in financial institutions or advisers, because, the lack of confidence over investments don’t allow them to have an objective judgment.
. • So, this 99% of people financially orphaned is made up of: - Those who simply are not going to spend a single dollar in financial advisory (orphans) --- Those who can afford an advisory but don’t have enough knowledge in order to make an objective judgment of their investments (orphans). .
. • Ripoll Committee: “There is a need to better inform consumers about the products signed up for, so that consumers can take a higher degree of responsibility for financial decisions and only buy products that entail a comfortable level of risk”. .
. • Ripoll Committee: “Some advisers are unable to advise clients properly because of their own lack of product knowledge”. .
. • Banking Royal Commission and other regulatory bodies are already changing the financial industry, higher educational and ethical standards mean that some financial advisors will exit the profession. In addition, some institutions have decided to close down their financial planning arms and “sell” their clients to another organisation. .
. • This is the main reason why at Self Brokerage we focus on providing financial education in an interactive way. .
. “If people knew how the world financial system works, there would be a revolution tomorrow” -- Henry Ford.
• Stay tune: .
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