Have you ever wondered why your broker or banker drives a fancy car and you don’t? The answer is quite simple! Insurance and banking is a business, and like any other enterprise, its primary purpose is to generate a profit for its owners. Of course, we might have a few financial advisers and insurance brokers selling good insurance cover but, please do take it from us- it is all just a commissions business!
Take the mutual fund industry as an example. These funds try to convince public investors that they constantly produce excellent investment results, but the truth is professional money managers do not live up to expectations. Details demonstrating how these professionals fail to outperform averages have been adequately covered elsewhere – no need to argue on this topic!
While some investment professionals sincerely want their clients to prosper, most of them will do so only if they can make money in the process. It is quite disturbing how professionals like doctors, teachers, pilots and engineers show minimal interest around issues of finance. We are not saying that people should not seek professional advice, but relying too much on other people’s expertise on matters relating to your financial destiny may not be wise. People should take charge and this does not mean taking on another full – time job. It simply means acquiring the basic investment knowledge.
The crux of the matter is that financial education is key. Piggybankadvisor.com is a personal finance weblog that empowers individuals, households and small businesses through educational and insightful articles and blogs. Topics covered include economics, stocks, budgeting, retirement & risk planning, wealth management tips and financial product reviews. So stay plugged-in on piggybankadvisor.com!