In your efforts to manage your cash and arrange for financial security, are you currently sometimes persuaded to get a product or engage a consultant's services on the basis of claims such as for example:
"Here 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 aren't uncommon in the financial services industry, just how can you decide who to trust or which financial institution to place your organization with? You will be grappling with this issue once you graduate and start planning your finances or simply nonetheless as you take stock of your retirement pans.
Let us look at these common statements to get a clearer picture of what's truth or myth:
1. "THIS IS ACTUALLY THE BEST FINANCIAL PRODUCT ON THE MARKET"
There is absolutely no one-size-fits-all product available in the market. What is ideal for one person may be unsuitable for another. A professional Financial Consultant should gather information about your financial needs and status prior to making any recommendation. get more info 'll expect your physician to prescribe medication only after he has made an analysis, so have exactly the same expectations of your financial consultant.
Ask your consultant: "On what basis is this recommendation ideal for me?"
2. "THE MORE AWARDS THE HIGHER"
Awards do give website on a Financial Consultant's performance. However, do keep in mind that awards are mainly measured by sales performance. Just as a fast food chain that sells the most burgers may not have the best cooks, a Financial Consultant who has achieved a higher sales performance might not necessarily be the most suitable person for you.
Ask your consultant: "How did you qualify for the awards?"
3. "WE ARE THE VERY 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 really the best? Well, they could all be the best and that depends on the basis of your measurement, for example, new business sales or assets under management. Just like a hospital that has the most number of patients does not mean the doctor that you will be seeing is a good.
Ask your consultant: "Best in what area?"
4. "WE CAN SOURCE FOR YOU THE BEST PRODUCT FROM DIFFERENT COMPANIES"
That might be possible only if a Financial Consultant can have access to all financial loans from all financial institutions and the financial loans 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 some of their products. Furthermore, competing financial products usually have different benefits and drawbacks. Make certain the financial product recommended is the best suited for you and not the one that is most beneficial for the Financial Consultant in terms of remuneration.
Ask your consultant: "How are you currently remunerated for the various options listed in your recommendations?"
When you run into these statements, be sure you ask the consultant to back them up. An excellent financial consultant will assist you to make investment decisions which are appropriate for your preferences, and these change according to what stage of your life you are at.