In your time and efforts to manage your cash and arrange for financial security, are you currently sometimes persuaded to buy something or engage a consultant's services on the basis of claims such as for example:
"Here is the best financial product in the complete industry."
"We are the very best financial services company."
"I am the best Financial Consultant available."
Such statements are not uncommon in the financial services industry, so how can you decide who to trust or which lender to place your business with? Additional resources will be grappling with this issue once you graduate and begin planning your finances or simply even now as you take stock of your retirement pans.
Why don't we look at these common statements to acquire a clearer picture of what's truth or myth:
1. "THIS CAN BE THE BEST FINANCIAL PRODUCT AVAILABLE IN THE MARKET"
There is no one-size-fits-all product on the market. What is suitable for one person may be unsuitable for another. A specialist Financial Consultant should gather information about your financial needs and status before making any recommendation. You'll expect your doctor to prescribe medication only after he's got made an analysis, so have exactly the same expectations of one's financial consultant.
Ask your consultant: "On which basis is this recommendation suitable for me?"
2. "THE MORE AWARDS THE HIGHER"
Awards do give an indication on a Financial Consultant's performance. However, do keep in mind that awards are mainly measured by sales performance. In the same way an easy food chain that sells probably the most burgers might not have the best cooks, a Financial Consultant who has achieved a high sales performance might not necessarily be the the most suitable person for you.
Ask https://fernandez-cleveland.thoughtlanes.net/the-advantages-of-independent-financial-advice-when-buying-to-let-1715678984 : "How did you qualify for the awards?"
3. "WE ARE THE VERY BEST payment processing agent and branding matter however the key question is how much emphasis you should put on them. Different financial services companies claim to be the best, so that is actually the best? Well, they could all function as 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 will not mean the doctor that you will be seeing is the foremost.
Ask your consultant: "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 compared 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 because the only distribution channel for most of their products. Furthermore, competing financial products will often have different benefits and drawbacks. Make certain the financial product recommended is best suited for you and not the one that is best for the Financial Consultant when it comes to remuneration.
Ask your consultant: "How are you currently remunerated for the different options listed in your recommendations?"
When you come across these statements, be sure to ask the consultant to back them up. A good financial consultant will let you make investment decisions which are appropriate for your preferences, and these change according to what stage you will ever have you are at.