Friday, September 28, 2007

How to use an agent

I use an agent (i.e. a stockbroker or relationship manager) actively on my personal investments. Here are some tips on how to use them:

1. Ask them to get relevant information for you. They have access to a large institution and colleagues who can identify and extract the information.

2. You can ask for their views and advice. But, you should be ready to take the decision yourself. It is your money that is being invested.

3. Get them to transact for you. They know the process and forms that have to be filled. They can fill the form for you and follow up on the next steps.

4. Pay them the standard fee for this service. They need to make a living, and can save you a lot of your time (which is costly) and unnecessary expenses.
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3 comments:

Anonymous said...

Mr. Tan, when it comes to insurance agents why pay them high commission for filling forms for you.It is madness. They do nothing or anything worth the commission you pay them.
As you say, product information you can look them up somewhere, from brochures or web sites.
I wonder is there a platform where we can use to purchase the products?
I heard you are starting an online
insurance portal. This will solve all the unnecessary cost we pay to agents.

September 28, 2007 1:02 PM
Anonymous said...

They only earn when a transaction is made. So some may not be helpful or have poor service attitude when you don't often made transactions for them to earn a fee. Or they may recommend transactions which is not good for you but only for them and their company/bank because of the fee. There was also a case of a bank relationship manager who made millions in sales but did not earn proportionate commissions/fees because she recommend products that are good for clients but not herself or the bank.

September 28, 2007 10:51 PM
Anonymous said...

This is the kind of adviser everyone
should be looking at and not those
that are filling up the pockets.
Hope the amended Consumer Protection Act will take care of this group of errant advisers and haul them up to court.

September 30, 2007 8:34 PM

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