In your efforts to manage your money and arrange for financial security, are you sometimes persuaded to get something or engage a consultant's services based on claims such as:
"This is the best financial product in the whole industry."
"We are the very best financial services company."
"I am the very best Financial Consultant available."
Such statements aren't uncommon in the financial services industry, so how do you decide who to trust or which lender to place your organization with? You may be grappling with this particular issue once you graduate and begin planning your finances or simply even now as you take stock of your retirement pans.
Let us look at these common statements to get a clearer picture of what's truth or myth:
1. "IT IS THE BEST FINANCIAL PRODUCT ON THE MARKET"
There is no one-size-fits-all product in the market. What is ideal for one person could be unsuitable for another. A specialist Financial Consultant should gather information regarding your financial needs and status prior to making any recommendation. You'll expect your doctor to prescribe medication only after he has made a diagnosis, so have the same expectations of your financial consultant.
Ask your consultant: "On what basis is this recommendation ideal for me?"
2. "THE MORE AWARDS THE HIGHER"
Awards do give an indication on a Financial Consultant's performance. However, do keep in https://financeprop.com/ that awards are mainly measured by sales performance. Just as a fast food chain that sells probably the most burgers may 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 qualify for the awards?"
3. "WE ARE THE VERY BEST FINANCIAL SERVICES COMPANY"
Reputation and branding matter however the key question is just how much emphasis you should put on them. Different financial services companies claim to be the best, so which is really the best? Well, they might all be the best and that depends on the basis of one's 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 best.
Ask your consultant: "Best in what area?"
4. "WE ARE ABLE TO SOURCE FOR YOU THE BEST PRODUCT FROM DIFFERENT COMPANIES"
That might be possible only when a Financial Consultant can have access to all financial loans from all financial institutions and the financial products can be easily compared to one another. Unfortunately, just 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 most of their products. In addition, competing financial products will often have different benefits and drawbacks. Make certain the financial product recommended is the best suited for you and not the one that is best for the Financial Consultant with regard to remuneration.
Ask your consultant: "How are you remunerated for the different options listed in your recommendations?"
When you run into these statements, make sure you ask the consultant to back them up. An excellent financial consultant will help you make investment decisions which are appropriate for your needs, and these change in accordance with what stage you will ever have you are at.