There is a risk in using the advice of a financial planner, who may be collecting fees to look after his own retirement, rather than look after the interest of the client.
http://www.businessinsider.com/a-license-to-steal-2012-8
http://www.businessinsider.com/a-license-to-steal-2012-8
Financial planning has been abused by salesmen who pretend or to look like they are planning the clients' financial plan.
ReplyDeleteWith financial planning process made compulsory by LIA there will be more pretenders of financial planning. LIA's goal is to increase fact find, not coverage , full or partial submission 100% and it will be achieved but with the same old sum assured stagnant at $50K.
As the article says these salesmen are using or appearing to be planning for their clients but the truth they are planning theirs'. How on earth with 100% fact find people are still under insured? But this is not the interest of the industry or LIA.Their interest or rather LIA interest is to report robust sales to mislead the whole world that the industry, the salesmen are still trusted as competent financial planners or doing a good job.
The commission is embedded and is never disclosed. The insurance products still break even after 20 years and they are recommended as suitable for grandmothers and grandfathers. Now they are more clever they design products for next generations . No wonder the breakeven is now even further. Not surprised the breakeven will take place in the 3rd generation while the current generation(the cows) will eat grass to be become the cashcows of the next generations.
This is ingenious, innovative product designing.