Many of us take our financial decisions based on our family members, society, friends, or colleagues’ recommendations or suggestions. We feel they are more informed or know more about us than we actually are. Hence, we blindly follow their recommendations.
However, majority of times such blind following will backfire you. Let me give you an example of what happened with two of my clients.
Your colleague as your Financial Planner!!
Recently a guy called me to share about his financial life and guidance and he referred one of his friend also. Let us say the first guy as Mr.X and his friend as Mr.Y.
During our discussion (discussion on his financial data) with Mr.X, I found that Mr.X is investing in equity mutual funds and also in direct stocks.
As usual, I asked the reasons behind choosing the funds or stocks. Mr.X replied that majority of his decisions are based on his friend Mr.Y’s recommendations and he simply follows him.
Then I asked Mr.X that…
