Pay a fee for financial planning advice

29 April 2012

Editor, Forum Page

Straits Times

It is important for Singaporeans to follow a properly designed

financial plan to ensure that they have adequate savings for their

future needs.

This involves budgeting, putting aside part of the earnings

as savings for the future, investing the savings to get an 

adequate return that can more than cover inflation, and buying

the right type of insurance to cover the contingency of

premature death.

This financial plan involves more than just buying life insurance. 

In fact, the wrong type of life insurance policy can give a poor return 

that can make damage a person's financial security. 

Indeed, most life insurance policies require a fixed amount of 

regular savings, making them unsuitable in an environment of

rapid change and job uncertainty.

The financial adviser should focus on holistic financial planning 

and should recommend a financial plan that is adaptable and 

suit a person's circumstances. 

Consumers should approach a financial adviser that is 

not tied to selling any specific financial product. Consumers  

should be prepared to pay a fee for the advice, based on the time

spent by the adviser. 

Consumers should also invest the time and money to attend

educational talks on financial planning that are organized by 

consumer based organisations that do not have any ties with 

any financial institution. (www.fisca.sg)

Tan Kin Lian

President
Financial Services Consumer Association