In alternative investment platform and efforts to manage your money and arrange for financial security, are you currently sometimes persuaded to get something or engage a consultant's services based on claims such as for example:
"This is actually the best financial product in the whole industry."
"We are the best financial services company."
"I am the best Financial Consultant available."
Such statements aren't uncommon in the financial services industry, just how can you decide who to trust or which financial institution to place your business with? You will be grappling with this particular issue once you graduate and begin planning your finances or simply nonetheless as you take stock of one's retirement pans.
Let us look at these common statements to have a clearer picture of what is truth or myth:
1. "THIS IS ACTUALLY THE BEST FINANCIAL PRODUCT IN THE MARKET"
There is absolutely no one-size-fits-all product on the market. What is suitable for one person may be unsuitable for another. A professional Financial Consultant should gather information about your financial needs and status before making any recommendation. You would expect your physician to prescribe medication only after he has made an analysis, so have the same expectations of one's financial consultant.
Ask your consultant: "On which basis is this recommendation suitable for me?"
2. "THE MORE AWARDS THE BETTER"
Awards do give an indication on a Financial Consultant's performance. However, do keep in mind that awards are mainly measured by sales performance. In the same way an easy food chain that sells probably the most burgers might not have the best cooks, a Financial Consultant who has achieved a high sales performance might not necessarily be the the most suitable person for you.
Ask your consultant: "How did you be eligible for the awards?"
3. "WE ARE THE BEST FINANCIAL SERVICES COMPANY"
Reputation and branding matter but the key question is how much emphasis you should place on them. Different financial services companies claim to function as best, so which is really the best? Well, they might all be the best and that depends upon the basis of your measurement, for example, home based business sales or assets under management. Just like a hospital that has probably the most number of patients does not mean the doctor that you will be seeing is the better.
Ask your consultant: "Best in what area?"
4. "WE CAN SOURCE FOR YOU THE BEST PRODUCT FROM DIFFERENT COMPANIES"
That might be possible only when a Financial Consultant might have access to all financial products from all finance institutions and the financial loans can be easily compared to one another. Unfortunately, like the theory of perfect competition in Economics, this could prove elusive in real life. Major financial services companies still use their very own pool of Financial Consultants because the only distribution channel for some of their products. Furthermore, competing financial products usually have different advantages and disadvantages. Make sure the financial product recommended is the better suited for you and not the one that is best for the Financial Consultant in terms of remuneration.
Ask your consultant: "How are you currently remunerated for the various options listed in your recommendations?"
When you come across these statements, ensure you ask the consultant to back them up. A good financial consultant can help you make investment decisions that are appropriate for your needs, and these change in accordance with what stage you will ever have you are at.