Piggy’s Trading & Investing Tips: The huge advice gap

Piggy recently came across an interesting survey that was conducted in the United Kingdom (UK) by The Lang Cat, a financial services consultancy.

The results of the survey show that; (i) only 11% of the UK population have paid for advice in the past 2 years, (ii) almost 20 million people miss out on the benefit of advice because they do not know where to get it from, or even that it exists and (iii) affordability remains a barrier to receiving advice.

It appears that for many people, savings and investments remain out of reach.

In addition, the rising costs associated with governance and compliance for financial advisors has the potential impact to exclude many consumers the right to access proper financial planning advice.

In Africa, the picture is even worse and one of the key problems being experienced by most communities relates to limited access to financial services.

There is also a lack of basic financial planning knowledge in areas such as budgeting and retirement planning.

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According to research done by Sanlam (South Africa), c16% of retired people are dependent on a state pension, c30% of retired people must keep working, c47% of retired people are dependent on family and friends to be able to live and only six people in 100 can retire comfortably independent of others.

The retirement planning situation is dire in Zimbabwe, and this has been compounded by the fact that citizens have experienced economic recessions and rising costs of living.

In this environment, having a dedicated financial advisor to assist in the financial planning process could prove to be a very wise decision.

However, the bottom line is that not everyone can afford to spend hundreds of dollars for the personalised help of a financial advisor.

This is often the case for underserved communities and even the middle class during economic crises.

Starting with free resources is often a good idea even though there could be limitations when using them.

The following are ways that individuals, households, and businesses can get access to free financial advice:

• Banks

Banks sometimes provide articles or materials that help customers learn basic financial principles.

• Stockbrokers

Much like banks, these firms often have articles and research reports that break down the basics of investing and personal finance.

Because they are brokers, their educational material likely covers investment markets. 

• In-person investment advisors

Some advisors offer a free consultation for prospective clients.

The consultation generally focuses on investment goals and what it would be like to work with them.

• Budgeting and financial planning apps

Using a budgeting or financial planning tool can be a helpful way to take control of your money.

But many of these investment apps offer supplemental material to help you learn about personal finance.

Those materials could come in the form of articles, videos or even workshops.

• The Securities Exchange Commission of Zimbabwe (SECZIM)

SECZIM is dedicated to making sure that investors are treated fairly by financial institutions. In support of its mission, it provides a host of articles, guides, and materials such as the Investment 101 Handbook, which provides a solid foundation for beginners.

• Podcasts and WhatsApp groups

There is a wide network of Podcasts and WhatsApp groups that provide free financial education.

The idea is to promote the advancement of self-reliant, financially educated individuals.  These platforms also offer free financial classes and seminars.

Overall, when it comes to financial advice, you can find a wealth of valuable information for free or at a low cost.

PiggyBankAdvisor has developed a powerful platform that not only provides access to investment opportunities but also promotes information sharing through investment clubs. 

Learn more about investing and trading by joining a PiggyBankAdvisor WhatsApp Group (+263 78 358 4745).

• Matsika is the managing partner at Mark & Associates Consulting Group and founder of piggybankadvisor.com. — +263 78 358 4745 or batanai@markassociatescg.com / batanai@piggybankadvisor.com.