Would You Seek Advice from a Bank?

Hi all

I was wondering if you would trust a banks financial consultant to give you sound advice on borrowing/investment?

Comments

  • +3 votes

    I always trust my drug dealer to sell me drugs.

    I also trust the real estate agent selling me houses.

    At least these guys can demonstrate their skill with results. A banker, however…..

    •  

      I also trust the real estate agent selling me houses.

      Until they pinch your blinds: https://www.ozbargain.com.au/node/373420

    • +2 votes

      Amazing how real estate agents are treated so much better than car salesman in society when I believe they are worse.

      A car salesman might be selling you a $20K or $50K car, you may be dropping up to a million or more on a house - sellers care about commission.
      The car salesman isn't running two cons at once ie: To the seller "We will get you the best price" To the buyer "I will get you the best price"

  • +1 vote

    Hahahahahahahaha.

    Please tell me you aren't serious.

  • +3 votes

    I'd rather get "trusty" advice from a politician! They are very honest and keep their promises!

  • +6 votes

    I trust & seek advice from OzB.

  •  

    I'd sooner entrust Donald Trump with my life than ever trust the financial advice from a bank.

  • +4 votes

    Nopeeeee
    Ozbargain advise only.
    Preferably from JV

  •  

    Lots of people trust a waiter on what food to order at a restaurant. Why not a bank employee?

  • +1 vote

    I can speak for my dead uncle. We can all trust banks to do the right thing by the dead.

  •  

    What ever happened to that guy going on about an 80k high yielding investment? Didn't he work in a bank?…

  • +3 votes

    No I don't trust the banks that I would blindly take their advice.

    However I don't think that Banks should cop ALL the blame here, the Banks are geared to give you advice that will grow their revenue / profits, so it's incumbent on the individual to assess the advice they get and determine if its suitable for themselves.

    Take this example….

    https://www.businessinsider.com.au/royal-commission-westpac-...

    I know she was given poor advice but the advice was so obviously unfit for their situation it would be lunacy to adopt the financial advisor's strategy.

    1) She is a nurse and He is a driver….why are they looking at a $2m exposure?
    2) They are towards the tail end of their working life (about 10 years planned working life left) why would you risk your life savings, your HOME, your super? You have no time to recover.
    3) Why would they need $2m of Life Insurance? Remember their occupations, they aren't 6 figure people, yet happily signed up to $27k of yearly premiums. WHY?

    Again the advice was poor, but it was so poor that even a lay person would say this is a bad deal.

    I dislike dishonest financial advisors, they should have a fiduciary duty to their clients.

    But what I hate even more is stupid people who make stupid decisions and take zero responsibility for those decisions.

  • +3 votes

    No. Its sad but true that a lot of these "Advisers" are glorifed sales people with a sales orientated mentality first. One of the most damning statistic to come out of banking commission is that only 35% of advisers hold a proper uni degree. If you can't even tell what is best for your client, what makes you think you are in a position to be able to advise them in the first place?

    There is also a huge conflict of interest between the advisor trying to make commissions and revenue for the bank and providing what is genuine sound advice for a client.

    If you do need a financial advisor, make sure you find one that don't charge commissions. Pay upfront for their time to help prepare your plan and make sure they don't make money on the side. Also if they are pushy to put you into a product then that is also a big red flag as kickbacks and hidden fees are the norm for the advisory business.

    •  

      Good advice but I'll give financial advisers much more credit for experience gained and integrity over a useless bit of university paper day of the week. Word of mouth counts for a lot too. :)

  •  

    Umm, nope.

    For yet another examples in a very long list of cases in point, check out 'The China Hustle' and how U.S. banksters and regulators 'recommended' their clients invest in China..and how it ended up (no surprises of course).

    There's also noise on the media today about implementing some kind of Glass-Steagal type regulation on the banksters. We'll see how far that gets. :)

  • +1 vote

    No I wouldn't them to give me advice (sound or otherwise) on borrowing/investment.

    I would expect a bank's employee to give me sound information on their borrowing/investment products and I would then determine whether or not to use them as part of my wealth creation strategy.

  •  

    Let me put it this way.

    The people I know who work in a bank I wouldn't trust them as a financial advisor or even being a good human being but I do trust on them on living "the good life" and being a great talker or having very great interpersonal skills so take that as you will.

    Basically no I would not seek advice from a bank unless I had no clue whatsoever in what I was doing but even then..

  •  

    I would seek advice from an accountant or financial advisor whom isn't receiving commissions. However I have an insurance broker who does get commissions but is at least decent enough. However it is very obvious that they are pushing products that give higher commissions or maybe even meet internal sales targets. As such you go into it with your eyes wide open and consider what is best for you and push back against their bias towards their own financial incentives. Same goes for the bank.

    I would never get actual financial advice from them but for certain things like buying a business asking them about what they see as the norm is certainly helpful (but again think for yourself and consider what they say and offer you makes sense).

    Banks are there to make profit for their shareholders. I constantly have to push their interest rates down by saying X and X bank have a much lower rate.

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