In your efforts to manage your cash and arrange for financial security, are you sometimes persuaded to buy something or engage a consultant's services on the basis of claims such as for example:
"This is the best financial product in the whole industry."
"We are the very best financial services company."
"I am the very best Financial Consultant available."
Such statements are not uncommon in the financial services industry, just how do you decide who to trust or which lender to place your organization with? You may be grappling with this particular issue once you graduate and start planning your finances or simply nonetheless as you take stock of one's retirement pans.
Let us look at these common statements to acquire a clearer picture of what is truth or myth:
1. "THIS IS ACTUALLY THE BEST FINANCIAL PRODUCT AVAILABLE IN THE MARKET"
There is no one-size-fits-all product available in the market. What is ideal for one person could be unsuitable for another. A professional Financial Consultant should gather information regarding your financial needs and status prior to making any recommendation. You would expect your physician to prescribe medication only after he's got made an analysis, so have exactly the same expectations of your financial consultant.
Ask The original source : "On which basis is this recommendation ideal for me?"
2. "THE MORE AWARDS THE HIGHER"
Awards do give a sign on a Financial Consultant's performance. However, remember that awards are mainly measured by sales performance. Just as a fast food chain that sells probably the most burgers may not have the very best cooks, a Financial Consultant who has achieved a higher sales performance may not necessarily be the most suitable person for you.
Ask your consultant: "How did you qualify for the awards?"
3. "WE ARE THE BEST FINANCIAL SERVICES COMPANY"
Reputation and branding matter however the key question is how much emphasis you should place on them. Different financial services companies claim to be the best, so that is actually the best? Well, they might all function as best and that depends upon the basis of your measurement, for example, new business sales or assets under management. Just like a hospital that has probably the most number of patients will not mean the doctor you are seeing is best.
Ask https://writeablog.net/fallonedwards5452/why-independent-financial-advice-is-essential-for-inheritance-planning : "Best in what area?"
4. "WE ARE ABLE TO SOURCE FOR YOU THE BEST PRODUCT FROM DIFFERENT COMPANIES"
That would be possible only when a Financial Consultant can have access to all financial products from all financial institutions and the financial products can be easily in comparison to one another. Unfortunately, just like the theory of perfect competition in Economics, this could prove elusive in the real world. Major financial services companies still use their own pool of Financial Consultants as the only distribution channel for most of their products. In addition, competing financial products will often have different pros and cons. Make sure the financial product recommended is the foremost suited for you and not the one that is most beneficial for the Financial Consultant regarding remuneration.
Ask your consultant: "How are you currently remunerated for the various options listed in your recommendations?"
When you run into these statements, make sure you ask the consultant to back them up. A good financial consultant will help you make investment decisions which are appropriate for your needs, and these change according to what stage of your life you are at.