Tan Kin Lian's Blog: Free and independent advice

Sunday, June 24, 2007

Free and independent advice

COMMENT POSTED IN MY BLOG:

Don't you think it's good we have Mr Tan here dispensing his free and independent advice in financial matters?

Why should financial advisors get a fee? From Mr. Tan free unbiased recommenation, you can get free independent financial advice at NTUC's business centre, and still get your financial plan implemented. There is no fee.

Just imagine if the rest like the banks and insurers follow the leadership of NTUC, would it be great cost savings for the consumers? In fact, I don't see any flaw in this business model at all. Free advice, low cost plans, zero fees.

6 comments:

Anonymous said...: Hm... Then what does the Financial Advisor earn for a living if they do not charge a fee? It a service that they provide and i think it is fair for them to charge a fee as long as it is not excessively high.

This is all about individual choice, if you find the fee of this advisor or bank is too high, then you are always free to go to another one.; June 24, 2007 2:54 PM
Anonymous said...: The advisers from the Business Centre earns a Salary from the company. They probably have high quotas just like those in Banks to justify the high cost in rentals and wages.

They are advising only on NTUC Income Plans and with quotas to hit, do you think they are really giving 100% unbias advices?

From my view, I doubt so...; June 24, 2007 7:25 PM
Anonymous said...: Just a comment on the first anonymous writer:

1. how a financial advisor earns a living is really NOT a problem for the consumer. i don't think anyone owns him/her a living. if the FA wants to be a FA, that's his career choice, nobody forced him/her to do it.

2. i agree with the business model that mr tan has help put in place with ntuc: pay a salary and train their advisors well, give good recommendations, help clients to implement low costs plans, don't charge fees. it's keep things simple and without other motives.

3. banks and other financial institutions placed too much middle-men layers in their products. investments and insurance should be simple and
easy to implement.

4. Mr. Tan, thanks for the great work done so far in your blog!; June 24, 2007 11:54 PM
Anonymous said...: I don't see you at the business centre, mike and also the rest who are for this model.
They are empty. Maybe because not many know about it.
Heard of this saying; pay peanuts you WILL get monkeys.; June 25, 2007 12:31 PM
Anonymous said...: Yes, mike, why don't you tell your boss to reduce your salary. Tell him the reason that you want his customers to have free or to pay the minimal price for his products or services.; June 25, 2007 12:36 PM
Anonymous said...: I would advocate a "no upfront fee, pay for performance" approach. This way, the advisor's commissions would depend on the performance of the product he recommends (i.e. % of gains, instead of % of investment). This provides incentives to both parties - the advisor can make more if he recommends good products, and the risk would be reduced for the consumer, since he knows that the advisor would be working in their mutual best interests.; June 25, 2007 5:25 PM