Wednesday, October 20, 2010

Conversation with a Financial Planner

I have the following conversion with someone who is considering to be a financial planner. Here are the issues involved in this decision.


3 comments:

Wilfred said...

Hi Mr. Tan,

I just want to point out that due to competition for human resources, a number of FA firms have implemented immediate vesting. This means that advisers who leave the firm has the right to service and receive recurring commissions from clients from previous firms. Thus, the "orphaned" policies is a thing of a past as far as these advisers is concerned because effectively they can and should take their clients along with them.

Just as the man-in-the-street must do their own financial planning, financial advisers themselves must also do their own financial planning through research and due diligent. I found many newbies select firms/insurance companies based on "feelings" and their perception about their manager. What they do not realised is that they are judging a firm/manager based on his selling skills.

veronika said...

What is so difficult to organise one's own finances?

I find it so laughable that in this day & age, people actually spend fees to pay a "professional" to define goals and allocate money.

Unless you have more than you need, perhaps you should consider such a service. But then again, how did you get so much money in the first place?

3 simple steps that do not require paying professional fees:

1) know how much are your expenses

2) If you have leftover, go to step 3. If you do not have leftovers, step is is not possible, go back to step 1

3) save 20% & invest the rest in blue chip shares.

80% of people usually do not have much to save or to invest anyway.
So, I am very amazed by the increase in the number of financial advisers.

The 20% of people who have sufficient money must really be making an impact..

zhummmeng said...

You are wrong, there was never any increase in financial advisers. The ONLY increase is SALESMEN or Conmen and Conwomen. That is why consumers have to be careful. It is not easy to get an true adviser or a consultant because 99% are salesmen or conmen in disguise.They come disguised as senior or executive consultants, wealth managers , life planners and some even dare to pass off as cfp(small cap)hoping consumers will mistake them as certified financial planners or experts in finance..All these salesmen have no qualm about fooling and cheating the consumers.Why? they have the blessing of their company who are using them to cheat.

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