Financial advice

[mathieu]

Hello everyone,

I want to help someone who is close to me because I know that he makes a lot of mistakes in terms of financial management.
He is 35 years old, with a wife and one child. He earn 6000 per month. He is self-employed and her wife is a nurse. He has a third-pillar account with a bank. He also has two other third-pillar accounts with an insurer. One in cash and one in shares. He also do crypto. For me, the best choices to make are:

Close crypto account, break the insurance contracts and close the account at the bank where his third pillar is held. I think this is necessary to avoid paying too many fees. Open an IBKR account, and apply the DCA. And open a FinPension account. With the closure of his accounts, he'll be able to collect a nice sum of money and put the money on IBKR and do DCA and FinPension. What do you think?

 

[justatreeinthesea]

I think you should send him a link to Baptiste's book and give him the advice you posted above as what you got out of reading it. It's a sound strategy, but he may not think it's a good fit or may need to read more about it. Of course, the same content is available in the blog and he can just use keywords to understand why he should make some changes

 

[Michael]

You can offer him the advice & send him this blog, but don't be pushy. He might be satisfied with what he has, even though objectively there would be better solutions.

If you want to keep this person close to you and would regret a bad outcome, then be careful with advice. I know you mean it in a good way, but in the end having good relations is more important than saving 1000.-.

 

[Baptiste Wicht]

What do you think?

Like others have said, be very careful about direct advice. Ideally, you should mention resources to him (my blog for instance, but others as well so that he can make an idea himself). The goal is that he then becomes aware of some of the issues, like high fees and then asks you some questions where you can then provide advice.

But if you are too pushy on a solution, he may either reject it or fell forced into it and then if this solution does not pan out, it will come back on you.

I gladly answer my friends' questions about these subjects, but I usually don't start the subject myself. I don't expect people to be as optimized as (I think) I am.