Tuesday, September 18, 2012

Interesting Report from Consumer Federation

The Consumer Federation of America is out with a new analysis today that shows an interesting paradox.  One the one hand, the study found that middle-class families had made "costly" financial mistakes.  On the other hand, it found that families still feel they can make "good" or "excellent" financial choices.

The react from CFA Executive Director Stephen Brobeck:
“Considering their past mistakes and the complexity of the financial services marketplace, we were surprised at how highly most middle class Americans rate their ability to make a variety of financial decisions and how infrequently they rely on information from the Internet and publications.”
Another interesting finding in the study is where middle-class Americans look for financial advice.  A full 45 percent said they want information from a financial advisor when looking for information about saving and investing.  This beat the Internet, books, magazines and TVs by a large margin.

As regulators in DC and states take a look at the financial industry, they need to keep this in mind.  As CFS's own research shows, the middle-class is woefully underserved and policies need to correct that problem, not make it worse.