Wednesday, May 02, 2012

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



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