In your efforts to manage your money and plan for financial security, are you sometimes persuaded to get something or engage a consultant's services on the basis of claims such as for example:
"This can be a best financial product in the whole industry."
"We are the very best financial services company."
"I am the best Financial Consultant in the business."
Such statements aren't uncommon in the financial services industry, so how can you decide who to trust or which financial institution to place your organization with? You may be grappling with this issue when you graduate and begin planning your finances or perhaps nonetheless as you take stock of your retirement pans.
Why don't we look at these common statements to have a clearer picture of what is truth or myth:
1. "THIS IS ACTUALLY THE BEST FINANCIAL PRODUCT ON THE MARKET"
There is no one-size-fits-all product on the market. What is https://www.aiuextension.org/members/artslice2/activity/1868811/ for one person may be unsuitable for another. A professional Financial Consultant should gather information regarding your financial needs and status before making any recommendation. You would expect your physician to prescribe medication only after he has made a diagnosis, 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 a sign 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 probably the most burgers may not have the very best cooks, a Financial Consultant who has achieved a higher sales performance might not necessarily be the 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 but the key question is how much emphasis you should put on them. Different financial services companies claim to function as best, so which is really the best? Well, they could all be the best and that depends upon the basis of your measurement, for example, new business sales or assets under management. As being a hospital that has the most number of patients will not mean the doctor you are 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 might have access to all financial loans 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 some of their products. Furthermore, competing financial products will often have different benefits and drawbacks. Make The Card Association scam recommended is the better suited for you and not the one that is best for the Financial Consultant with regard to remuneration.
Ask your consultant: "How are you remunerated for the different options listed in your recommendations?"
When you run into these statements, ensure you ask the consultant to back them up. An excellent financial consultant can help you make investment decisions that are appropriate for your preferences, and these change in accordance with what stage of your life you are at.