Thursday, July 30, 2009

Financial Literacy: Promoting the knowledge: Mr. Eric Esterkin... (2)

For all of us who are involved in the global financial industry, witnessing the growth, earnings, investment opportunities, risk and the notorious failures that those markets and major financial institutions on Wall Street have "shared" with all of us on Main Street, have implied unfortunate events and in most cases, sad personal stories: growing credit card debt, foreclosures, bankruptcy, layoffs, unemployment, delayed retirements, massive frauds (the already "famous" Bernard Madoff and Allen Stanford).

In the meantime, we've also witnessed what I think are serious efforts where the U.S. Government wants to create a frame of concrete reference intended to solve or at least provide an initial help for people already grappling with a difficult financial situation.

Since this crisis has had a true global negative effect, we realize that "average" people is being affected by financial problems and in many cases, a difficult time for older people in terms of deciding about retiring now, continue working and how to manage retirement related risks.

Based on a complex financial outlook we are witnessing as a result of this crisis, once again, I scan ee how the whole problem revolves about Financial Literacy and a key goal: our ability to manage our money efficiently not only to buy groceries, pay our debts but the ability to plan our financial future.

Thinking once again about what to do as to how to build a more efficient Money Management process, I invited Mr. Eric Esterkin who is another committed financial advocate, to share his mission and vision in terms of spreading a more complete Financial Advisory process:

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"My company, Younginvesteneur, creates a win-win with financial advisers and their clients through financial literacy and general business education tools. In addition to educating the clients, the YoungInvesteneur Newsletters and other resources promote the advisers' intergenerational referral business, build the adviser a new loyal customer base, educate their customer base and differentiate their brand, all for significantly cheaper than traditional marketing tactics.

"In a recen survey of 300 young adults, on average, 30% of those whose parents utilize a financial professional have decided to open an account with a discount on online firm, despite the obvious ease of accepting a referral from their parents. These lost clients also responded that they are 75% more likely to maintain accounts with their parent's professional, if offered basic financial literacy materials to help prepare them for their future.

"I believe that financial advisors are in a unique position to promote financial literacy as they are directly involved financial transactins with the clients. These transactions are the best learning opportunities for the clients, as opposed to teaching financial literacy in the classroom, as they are more relevant and consequential".

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As a visual complement, let's consider watching the following videos offering us a general view about what a Financial Advisor does, the importance of having an open communication with him and how important his role has become in these tough financial times:

I want to thank and congratulate Mr. Esterkin for another magnificent job in promoting Financial Literacy.

Image: Photobucket

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