Posted in my blog (and edited by me):
Your adviser plays a VERY IMPORTANT part in the advisory process. It is make or break for your financial future.
A poor and wobbly start and you never achieve your goals.That is the reason why many CPF members still licking their wounds from losses because they never got a qualified and competent adviser in the first place. What they got was a salesman who sold them funds but didn't guide and advise on the investment.
Similarly why many people are still under insured is because they got salesmen and women to advise on their insurance. You be surprised that insurance planning is not about selling you a policy and your concerns and fears will go away and you will get peace of mind. It is about getting all your needs addressed.
This is also the conscience of the advisers plays a key role. Check your insurance. I bet you have a load of whole life, limited premium and endowment. Tally them up to see if you have enough despite paying so much premium. What is the point of paying so much premium and yet you have so big a gap.
Do you know why this blog promotes 'buy Term and invest the rest'? It is because there is great concern for you; to educate you so that you will not be bluffed by insurance salesmen; also to let you know this is the best approach to take care of your protection and wealth accumulation efficiently and effectively.
Straight forward and simple, plain vanilla products. If you have a good qualified adviser he or she can help you to achieve your goals because they guide you all the way and not abandon you after a sale is made like the insurance salesmen.
Remember to choose a good adviser. If you do not have one you can go to www.fpas.org.sg to get help to get an adviser who is attached to the company of your choice. Eg. you want one who is representing NTUC.
Z
Yes, choosing an adviser from www.fpas.org.sg assures you that you don't end up with a salesman.He or she can be an AFP, AWP or CFP and of which CFP is the highest of the three. All these certificants have to meet stringent and rigorous exam,experience, education and ethics.No compromise in the exam; no open book or any experience exemption or other means other than by RIGOROUS exam. Ethics is of the most important and the the board enforces that all members conduct their business in an ethical manner. Any breach of ethics, and misconduct the public can lodge a complaint and have the errant member disciplined or struck off the register.
ReplyDeleteThe certificants follow a 6 step approach to your financial needs before recommendation and implementation. All recommendations MUST be substantiated.There is no product peddling and pushing.
Warining: there is no guarantee that you may not get a black sheep just like other professions. But the chances of getting one is lesser than getting one at the roadside shows, malls and mrt.
If you are served by an agent from NTUC or other companies, it serves you well to ask if he or she holds any of the designations.
The CFP is globally accredited and is financial planning highest standard.The ISO adopts the CFP practice standard as the global standard. Spring Singapore adopts this standard too.
There are other designations and can be confusing. In this title crazy industry, agents have letters after their names, all kind of letters,in the the ABC soup. These 3 letters, C F P are easily recognisable and they represent the hallmark of excellence and safety.
The next time you choose an adviser, it pays to ask "are you a CFP?"
When you see a doctor you make sure he has a minimum qualification like MBBS. What if you get one with just nursing cert.Will you dare to consult him? He must be a fake, right?
ReplyDeleteA lawyer must have LLB, an accountant with CPA, an actuary with FSA,an engineer with BSc(eng),investment analyst with CFA etc etc.
The problem in the insurance you have insurance salesmen passing off as professionals with certs only.
Is it dangerous?It is no wonder all
these years, after 20-30 years, people are still under insured, unable to retire, got poorer, widowed or single parents living on the dole . Why it happened? I thought insurance with its noble social mission to get people out of the rut , the poverty trap and to provide financial independence and you still have these social problems.
Insurance is still a noble vocation. It is the people or agents or the salesmen who abuse and who have no noble objectives. People join the trade with sinister motive.
Secondly, to aggravate further you have agents without the right professional qualifications like wolves passing off as sheep
This how the whole industry is infested with rogues whose mission is to rob the customers of their financial independence.
Choosing an adviser then becomes the most important. There are many postings on this subject. Check who and who you should choose as adviser and the criteria
An good adviser will show you how to plan and why you need to plan before he start the fact finding process.
ReplyDeleteListen and compare what you learnt in Mr Tan's blog. See how much mis-match are there.
Adrian Khiat
http://akhiat.blogspot.com