COMMENT POSTED IN MY BLOG:
I would like to add that the agents sell what pays them the most commissions besides what is hot (typically what is bad for the investor).
Most are driven by sales commissions. If the client so happens to buy something good for themselves, it is just pure luck.
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REPLY:
There are advisers (agents) who sell low cost products that are good for the investors. They get a modest commission and provide good service to their clients.
Your caption aptly describes what is needed when looking for an agent or adviser. GOOD ADVISER> What is a good adviser?
ReplyDeleteIt is someone who is honest; who puts clients' interest above his; who must be competent in his job.
(eg.There are a lot of non NTUC agents recommending Incomeshield to their clients even though their the company has this type of plan)This is putting client's interest first.
Remuneration is not important if the advice is worth the price. You don't mind paying an adviser who is able to help meeting your needs.
How to identify them? First his qualifications, eg.CFP,CFA,CPA, CLU.( These are globally accredited)
Referrals--3 referrals at least. Clients who have used the adviser.
The society or association he belongs
Refer to MAS register for any complaints against him.
Lastly your personal encounter with adviser.This is not easy if you don't know what is a good adviser. The way he conducts himself will give away himself.
Remember, it is not a girl friday who is willing to doing anything for you,eg. from giving lunch;celebrating your child's birthday, to making a claim etc etc. This is good service but we want good advice.
Agents who sell low-cost product obviously won’t earn much. They’re honest, but, definitely not Million-Dollar-Round-Table stuff. Smart, ambitious advisors won’t go around selling term insurance for long. The best protection for a client is still to educate himself.
ReplyDeleteTraditional Policies have their good points. Term policies have theirs too. There are people who simply fear and detest investments and have a strong desire to save. Traditional plans might be suitable for them compared to no actions taken at all.
ReplyDeleteIf the person choose term, he should DIY his own investment portfolio or seek advice from a professional on how to choose their investments, regular reviews and rebalancing.