The banker is not the only one to talk about your finances (and fortunately)

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 Home >> Financial Coaching >> The banker is not the only one to talk about your finances (and fortunately)

Traditionally, when we talk about money, we often think of our banker. However, he is not the only one who can help you manage your finances (far from it). In fact, they only handle a small part of it. Have you ever met a wealth management advisor? A notary? An insurer? A broker? A budget coach? Let's study the roles of these different "pros" who gravitate towards your personal finances. You will then know who you can trust.

His role is to provide you with :

    Solutions for "storing" your money (current account, secure savings books)

    Means of payment (credit card, checkbook)

    Financing solutions that are sometimes indispensable (real estate loan, car loan)

    But also financing solutions to be handled with care (overdraft, personal loans, revolving credit)

The banker can also propose you to subscribe to additional products: cell phones and packages, insurance.

He can sometimes give advice on how to make your money grow on investments:

    Life insurances,

    Housing savings plans,

    Plan Epargne Action to invest in the stock market.

The main disadvantage of banks is that they want to do too many things and don't always do them well. Given the number of customers followed by a bank advisor and the number of products to offer, bank advisors do not have the means to establish a personalized relationship to help their customers manage their money.

As a result, the French do not feel close to their bank. We didn't invent it, a TNS SOFRES survey measured it:

We recommend that you entrust your bank with :

- Obviously the management of your current account and your secure savings accounts (LA, LDD, LEP)

- As well as the provision of a credit card and a checkbook

- And why not the study of your real estate credit (you never know, it can make efforts to keep you)

The insurer and the long range of insurances, to protect you from hazards

When we talk about personal finances, we tend to exclude insurance. However, insurance plays an essential role in protecting you against the "hazards of life" and their heavy financial consequences.

In fact, insurance helps you face financial risks that you could not assume with your savings alone.

Often experienced as a constraint, not all insurance is mandatory, but it is not superfluous either. Some insurances are essential to complete your social protection. It is important to be advised by an insurance professional who will objectively study your personal situation and the risks it may represent.

Bank products for the banker, insurance products for the insurer!

The insurance business is quite distinct from the banking business. However, since the 1970s and 1980s, the boundaries between the two professions have become less clear to the public.

Progressively, in order to diversify, banks have offered more and more insurance products. This is the concept of "Bancassurance". More recently, insurance companies have also created banking subsidiaries.

For the consumer, this has the advantage of being able to deal with a single contact. But the multiplication of product ranges for advisors (banks or insurers) makes the management of customer portfolios more complex.

Therefore, we recommend that you call on professionals from both professions. We draw your attention to the necessity to verify that your interlocutors are specialists in each of the subjects. In this respect, a good broker specialized in credit or in insurance will sometimes be more relevant than a generalist "Bancassurance" consultant.

Credit or insurance brokers

Those who are called "brokers" are part of a group of professions recognized by the law as financial intermediaries and which includes :

    Insurance intermediaries (IAS) more commonly known as "insurance brokers".

    Intermediaries in Banking Operations and Payment Services (IOBSP) more commonly called "credit brokers".

The IOBSP constitute, for these fields, the equivalents of the advisers in wealth management or the advisers in financial investments, in the field of the saving. They are the patrimonial intermediaries of the customers, for the liabilities and the insurance of the patrimonies, as the CGP and CIF are for the assets of the patrimony.

Theoretically independent from the pressure of the commercial objectives of the companies, brokers must be able to provide perfectly objective advice.

The mission of brokers, as representatives of their clients (or principals), is to provide the contracts or loans best suited to their needs, according to their project and family situation, with the best guarantee/price ratio.

In order to limit fraud, all Financial Intermediaries are subject, since January 1, 2013, to an obligation of registration in the unique Register of Intermediaries, held by the ORIAS.

Special case : should you use a broker for a loan consolidation ?

At Plénit'Finances, we work in partnership with brokers specialized in "credit repurchase" or "loan regrouping". These last chance solutions are to be used when your indebtedness becomes too high (between 40 and 50%) and when your "living balance" is insufficient to meet your vital needs.

But be careful, this is not a miracle solution. We strongly recommend that you combine a credit repurchase with learning good budget management. This is what we propose to the clients of our broker partners to prevent them from "falling back" into excessive debt.

The notary, to authenticate important "contracts

The notary is a public officer, acting on behalf of the State and appointed by the Ministry of Justice. His mission is to authenticate and preserve the deeds concluded between different parties in order to enforce their rights.

More broadly, he is a legal professional from whom you can obtain advice on legal and tax issues.

The notary intervenes in various fields:

    Family acts: marriage contract, donation, will, succession

    Real estate: negotiation of sale, signature of pre-contract, signature of the sale

    The company: legal and fiscal solutions adapted to the patrimony of the company manager

    But also rural law and services to local authorities

Because of his fields of intervention, which are more related to your patrimony, the notary intervenes on specific problems or events of your life.

As soon as you live as a couple, and even if you are not married, as soon as you start a family, you should not hesitate to meet a notary. He will advise you, sometimes free of charge if your situation is simple, on the acts to put in place to facilitate inheritance problems and protect your family in case of a tragic event.

The wealth management consultant

The wealth management consultant is a versatile professional who can practice his profession independently (CGPI) or by being linked to a financial institution such as a bank or an insurance company (CGP).

The success of IFAs (from 1850 firms in 2007 to more than 3000 in 2014) is the consequence of the limited offer of banks, which were slow to develop specific services for their wealthy clients.

Like private bankers, these advisors manage a portion of their clients' assets, while providing them with advice to optimize their wealth. Unlike bankers, however, IFAs are not custodians of the funds they manage.

They are intermediaries who offer their clients the best products and investments from financial institutions.

Beyond their mission as financial investment advisors (FIA), IFAs bring a very complete view of your situation by optimizing the patrimonial, fiscal, social and inheritance aspects. This is why you should not hesitate to call upon a CGP, even when you have a "small" estate. Contrary to popular belief, these professionals are not reserved for an elite or an ultra-rich clientele. According to Deloitte, the average amount of financial assets managed by a CGP was 90491€ per client in 2014

The budget coach, the new personal finance pro who deserves to be known!

All the professionals we have mentioned so far are specialists in their field. They bring you solutions that meet specific needs in your life, in the 3 main areas of financial management:

Banking & Financing

    Insurance & Pensions

    Wealth & Investment

However, none of them manage the heart of your personal finances, the essential organ for the circulation of your money: your current budget!

Without a balanced budget between your income and your expenses, or rather without a surplus budget, it is impossible to set up the insurance, provident or asset mechanisms that allow you to achieve financial freedom.

However, mastering your budget is not something you learn in school.

It is learned through experimentation, and requires more or less time or experience (sometimes unfortunate).

To help you save time (and money), the role of the budget coach (or financial coach) is to train you to manage your budget properly.

His benevolent support, attentive to your needs and your life projects, will allow you to accumulate surpluses (rather than overdrafts) to build the basis of your wealth: solid and sustainable savings.