Choosing the Financial Consultant - Debunking the Myth

In your time and efforts to manage your cash and plan for financial security, are you sometimes persuaded to get something or engage a consultant's services based on claims such as for example:

"Here is the best financial product in the complete 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 can you decide who to trust or which financial institution to place your business with? You can be grappling with this issue once you graduate and begin planning your finances or simply nonetheless as you take stock of your retirement pans.

Let us look at these common statements to obtain a clearer picture of what is truth or myth:

1. "HERE IS THE BEST FINANCIAL PRODUCT AVAILABLE IN THE MARKET"

There is absolutely no one-size-fits-all product available in the market. What is ideal for one person could be unsuitable for another. A professional 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 an analysis, so have exactly the same expectations of one's 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 mind that awards are mainly measured by sales performance. Just as an easy food chain that sells the most burgers might not have the very best cooks, a Financial Consultant who has achieved a higher sales performance might not necessarily be the most suitable person for you.

Ask your consultant: "How did you be eligible for the awards?"

3. "WE ARE THE VERY BEST FINANCIAL SERVICES COMPANY"

Reputation and branding matter however the key question is how much emphasis you should put on them. Different financial services companies claim to function as best, so which is actually the best? Well, they might all function as best and that depends on 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 are seeing is the better.

Ask your consultant: "Best in what area?"

4. "WE CAN SOURCE FOR YOU THE BEST PRODUCT FROM DIFFERENT COMPANIES"

That would be possible only when a Financial Consultant might have access to all financial loans from all financial institutions and the financial loans can be easily compared to one another. Unfortunately, just like the theory of perfect competition in Economics, this could prove elusive in the real world. Major financial services companies still use their 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 certain the financial product recommended is the greatest suited for you rather than the one that is most beneficial for the Financial Consultant when it comes to remuneration.

Ask  Money : "How are you remunerated for the different options listed in your recommendations?"

When you run into these statements, be sure you ask the consultant to back them up.  https://writeablog.net/noteslice8/the-advantages-of-independent-financial-advice-when-buying-to-let  will assist you to make investment decisions that are appropriate for your preferences, and these change according to what stage you will ever have you are at.