CHANGE IS COMING – EMBRACE IT OR BE LEFT BEHIND
An investment-linked plan is a life insurance plan that combines investment and protection. The premiums that you pay provide you not only with life insurance cover but part of the premiums will also be invested in specific investment funds of your choice. How can a Financial Adviser give advice when they don’t even understand stock market proper? In Singapore Financial Advisers must seat for an exam –
|Collective Investment Schemes (CMFAS M8)|
|Collective Investment Schemes II (CMFAS M8A)|
|Life Insurance and Investment- Linked Policies (CMFAS M9)|
Every Financial Advisers have a responsibility to sell financial programs responsibly and professionally by understanding the cost involves:
- Cost of distribution
- Mortality Charges for every 1000
- Other cost involved
Not just showing the clients the potential returns and ignore the cost involved in putting this program in-force. Financial Literacy as much we want our clients to be financially literate is important for the Financial Advisers to be Financially Educated.
RE-BALANCING THE CLIENTS INVESTMENT PORTFOLIO IS THE RESPONSIBILITY OF A FINANCIAL ADVISER.
Even if you’re a passive, buy-and-hold investor, you should rebalance your portfolio at least once a year. How can a un-informed Financial Adviser re-balance a clients portfolio if he/she doesn’t know what is happening in the financial market. 100% Equity in times of political unrest will be a nightmare; Money Market in times of economy boom is crazy and etc.
Professional Financial Adviser are well informed and trained. They always approach the financial planning process with client interest at heart. How can you say you have client interest at heart if you are not financially educated. in the Stock Market.
Stock Market is the heartbeat of the country economy and how well they are doing. If this companies in the Stock Exchange don’t do well it will drastically affect the Economy as a whole.
ARE YOU READY FOR CHANGE 2020?
If you are ready for a change then start learning about the financial market at the macro level and make a change. Give good advise to your potential clients that you meet and give them value-added services. Informed them about all the charges involved and short-comings. Never hide all the short-comings and try to make a sale – REMEMBER THAT.